Friday, 24 November 2017

(The Star) Nestle opens global procurement hub in KL

KUALA LUMPUR: Nestle SA has launched its global procurement hub in Kuala Lumpur, one of three worldwide, as the world’s largest packaged foods company seeks to strengthen its supply chain in the region.

The foodmaker is targeting to grow its globally-procured raw materials composition from 40% to 60%.

“This (hub) will enable us to be more efficient and effective in the way we procure raw materials, which shall in turn create better cost efficiency, standardise specifications, as well as improving agility and speed of operations at the procurement level,” its executive vice president & head of operations Dr Magdi Batato said.

The new 23,000 sq ft facility at Menara Ken will provide Nestle global operations with enhanced strategic procurement support, delivering competitive and innovative solutions to help drive the group’s overall objective for sustainable growth.

The event was officiated by Second International Trade and Industry Minister Datuk Seri Ong Ka Chuan.

This is Nestle’s third such hub after Switzerland and Panama, all of which source required ingredients, materials and services from around the world to supply the needs of 150 countries where Nestle is present.

The global procurement hubs will provide a wide range of services, including the management of global procurement for specific raw materials such as cocoa and coffee, packaging materials, services, as well as other procurement-related support for all markets.

Nestle Malaysia is the largest halal producer among other Nestle markets, exporting over 500 products to more than 50 countries, and is recognisable as the Halal Centre of Excellence for the group.

In his speech, Ong said the government is firmly focused on its vision to position Malaysia as a preferred investment destination and among the most globally competitive trading nations by 2020.

“In line with this, it is heartening to note that a leading multinational company such as Nestle has selected Malaysia as one of its three sites across the world for its global procurement hub,” added Ong.