Nestle. Cutting DTS Direct To Store. Now shipping to a warehouse. From a Supply Chain view are they trading Last Mile delivery costs for carrying more inventory in warehouses and potentially delay deliveries? Treating inventory as a asset instead of service performance metric?
Nestle's U.S. Unit Will Slice 4,000 Jobs in Delivery Change
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Will stop shipping frozen pizza, ice cream direct to stores
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Staff cuts will bring one-time costs of about $500 million
Nestle SA’s U.S. unit will dismiss about 4,000 workers as it stops delivering frozen pizza and ice cream directly to stores and transitions to a warehouse model that’s becoming an industry standard for Big Food companies looking to trim costs.
The company said Tuesday that it’s shutting down its direct-to-store delivery network for products like DiGiorno and Skinny Cow beginning in the third quarter. The change, announced at a shareholder event in Arlington, Virginia, means the elimination of an operation that now includes 230 facilities, 1,400 trucks and 2,000 different routes.
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