Nestlé, the world’s largest food and beverage manufacturer, marked a milestone with the launch of its Global Procurement Hub in Malaysia on Nov 23. The launch was officiated by YB Dato’ Seri Ong Ka Chuan, Second Minister of International Trade and Industry, and Dr. Magdi Batato, Executive Vice President & Head of Operations, Nestlé S.A.
As a key Asian market for Nestlé, Malaysia was selected to host one of the Group’s three Global Procurement Hubs, known as ‘Nestrade’. The Global Procurement Hub in Malaysia will source required ingredients, materials and services from around the world to supply the needs of over 100 countries globally. A talented team of around 130 staff has been employed in the Malaysia Hub to oversee and conduct procurement activities for Nestlé markets across the globe.
YB Dato’ Seri Ong Ka Chuan commented, “As we move closer towards realizing the objectives of the Government’s Economic Transformation Programme, 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 Nestlé has selected Malaysia as one of its three sites across the world for its global procurement hub. This is indeed a good reflection of our nation’s potential.”
According to Dr. Magdi Batato, “This new Global Procurement Hub will provide the Nestlé Group with enhanced strategic Procurement support, delivering competitive and innovative solutions to help drive the Group’s overall objective for sustainable growth. Given Malaysia’s proven track record of success, it is the ideal country for this hub, with all the right elements which will enable us to realize our vision to deliver procurement excellence for Nestlé.”
The Global Procurement Hubs mark an evolution in the way Nestlé manages procurement on a global scale, adapting to a rapidly changing business environment. The 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.
“Our Global Procurement Hub in Malaysia is part of our Procurement Vision 2020, which aims to increase value creation for the Nestlé business. The Hub in Malaysia will help us to deliver sustainable value to the business by focusing on efficiency, quality, safety, availability and sustainability in all our procurement activities. This milestone today would not have been possible without the invaluable support of the Government of Malaysia, particularly the Ministry of International Trade and Industry, the Ministry of Finance, the Malaysian Investment Development Authority, and Talent Corporation Malaysia,” said Mr. Rahul Vashistha, Head of Nestrade Procurement Hub – Malaysia.
Mr. Alois Hofbauer, Chief Executive Officer of Nestlé (Malaysia) Berhad, key Nestlé personnel, external stakeholders and members of the media were also present at the launch.
Guests had the opportunity to be taken on a special tour of the Global Procurement Hub, which features a smart-office with state-of-the-art facilities. Commenting on the smart-office concept, Mr. Vashitha said, “This building design has been developed in line with international benchmarks for sustainable green development, energy efficiency, and environmental consciousness. These principles are something Nestlé strongly believes in.”
This new Global Procurement Hub in Malaysia is a new chapter in Nestlé’s long history in the country, which started when the company first began operations here in 1912. Today, Nestlé Malaysia is the biggest Halal producer amongst other Nestlé markets, exporting over 500 products to more than 50 countries, and is recognized as the Halal Centre of Excellence for the Group.