Nestle USA Cuts Hidden Cost

Nestle USA taps Tom Zosel Associates (TZA), the provider of cost-cutting solutions for distribution environments, to support its logistics operations and the associated storage complexity. The implementation of a distribution best practices program will enable Nestle to identify hidden operational costs and further improve service and accuracy. "We carefully selected providers to find the best fit for our operational requirements," says Steve Papke, director of operations, Nestle. "TZA has a strong track record in the food and beverage industry and we are confident that their considerable experience in multiple distribution environments will enable us to optimize our distribution centers without major capital expenditures." The program designed by TZA will begin with a structured plan to compare processes in all warehousing stages of Nestle's distribution operations, including receiving, put-away and replenishment, case picking, pallet picking, loading and shipping. A review of WMS functionality is expected to further minimize operational costs by improving productivity and order accuracy while reducing order fill times, cycle times and product damage.