Nestlé closes in the US, its proprietary delivery network for frozen pizza and ice cream and, in the course of which 4’000 jobs, wrote the news Agency Reuters on Wednesday, citing the statements of the company.
to supply Instead of supermarkets and shops directly to the food group distribution in a network, the Nestlé were already, for the delivery of other frozen and Snacks used. With the step-Nestlé wants to be more efficient and more profitable.
A Nestlé spokesman in Switzerland, the details of the specific job cuts to the news Agency AWP yet do not confirm. It was known from the information from the previous day, that the conversion of Nestlé, which will cost around half a billion dollars. The sales of the changeover on price reductions and optimizations are likely to be reflected in the range of 2019-once, it was called. It applies, the consequences for the affected employees to mitigate, had the group also stated.
Nestlé wants to include eight distribution centres for deep-frozen products. The lead in addition to the one-time cost a one-time negative effect on the sales of approximately $ 450 million, wrote Reuters on Wednesday.
Unaffected by the changeover of the financial objectives of the group for 2019. And the change was already included in the forecast of some 700 million Swiss francs of restructuring costs.
The direct delivery to the stores (Direct store delivery, DSD) is a highly complex and expensive: For Nestlé operating for the frozen business in the United States 230 plants with 4’000 employees and 1’car 400 load. This delivery system have historically made sense, had US running in-chief Steve Presley on the previous day.
the products were found to be faster in the shelves and it was possible for Displays to be provided. But today, many retailers have professionalized their supply chains, what are the advantages of have disappear.
New Nestlé sets the marketing of Pizza and ice cream in the United States to an intermediate storage in cold stores (Frozen Warehouse distribution).