Nestlé Nespresso - Quality over quantity: Producing responsibly with Nestlé Nespresso

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QUALITY OVER QUANTITY:

PRODUCING RESPONSIBLY WITH NESTLÉ NESPRESSO

QUALITY OVER QUANTITY:

PRODUCING RESPONSIBLY WITH NESTLÉ NESPRESSO

Marc Moal, Global Head of Contract

Manufacturing at Nestlé Nespresso highlights the company’s innovations in manufacturing.

FOR

OVER THREE DECADES, NESTLÉ NESPRESSO HAS REDEFINED AND REVOLUTIONISED THE WAY MILLIONS OF PEOPLE ENJOY THEIR COFFEE,

AS WELL AS SHAPING GLOBAL COFFEE CULTURE.

oday, the company is focused on constant growth and innovation in delivering consistent quality, while simultaneously developing its vision for sustainability which is encapsulated within its strategic framework, The Positive Cup.

Speaking to us about the company’s manufacturing operations is Marc Moal, Global Head of Contract Manufacturing at Nestlé Nespresso – a role that involves supervising the manufacturing activities of the wellknown coffee machines. To begin, Marc explains how the company is

embarking on a journey to transform its operations.

“We prioritise constant efficiencies in our contract manufacturing operations to ensure the delivery of coffee machines with the best quality and an optimised environmental footprint says Marc. “Automation and digitalisation play crucial roles in achieving these objectives – as well as helping us overcome some of the challenges we and the entire industry face everyday such as staffing or traceability.

“To enable that journey, we partner with our manufacturers to deliver

“WE’VE PARTNERED WITH EMOLDINO TO ENABLE

REAL-TIME MONITORING OF OUR INJECTION MOULDS, ALLOWING US TO OPTIMISE THEIR USAGE AND MAKE INFORMED DECISIONS ABOUT RENEWALS”

year-on-year efficiencies. We’ve also been conducting lean assessments and adopting innovative ideas from our network to stay at the forefront of technology.

“For instance, we’ve partnered with eMoldino to enable realtime monitoring of our injection

moulds, allowing us to optimise their usage and make informed decisions about renewals. We’ve

also introduced collaborative robots (cobots) that can perform various operations with different machines using reliable image recognition. This level of automation enhances our manufacturing processes and improves overall efficiency.”

Their solution provided us visibility to quickly mitigate potential delays without emergency interventions

Capacity planning to reduce outsourced supplier risk

Remote Tooling Audit to reduce supplier visits

On-time delivery to maintain production schedules

Tooling Lifecycle management to prevent operational downtime

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The company is also endeavouring to amplify its sustainability initiatives.

“Although our capsule recycling initiatives are deployed worldwide, we’re equally committed to embedding sustainability in the manufacturing and maintenance of our coffee machines,” says Marc. “We prioritise materials with the lowest CO2 impact, such as recycled plastics, paper and pulp, as well as having reduced paper usage by digitising our user manuals. Additionally, we’ve put initiatives in place to minimise electrical consumption –such as optimising power-off times – and have launched our Relove programme which offers customers the possibility to buy reconditioned machines.

“To further accelerate our sustainability efforts, we are acting on multiple levers and various opportunities – including a partnership with the Ellen MacArthur Foundation to promote circularity by reselling our injection moulds at the end of their lifecycle. We’re also constantly pushing our suppliers to reduce their carbon footprint, elevating them year on year through local initiatives.”

However, it can be challenging to deploy practices such as this when managing a wide range of machine models. To streamline this process, Nestlé Nespresso is looking to embark on a platform approach to its practice.

“AS NESTLÉ NESPRESSO CONTINUES TO INNOVATE, THE COMPANY IS FOCUSED ON IMPROVING THE QUALITY OF ITS MACHINES, PRIORITISING DURABILITY AND SUSTAINABILITY TO MEET EVOLVING CUSTOMER NEEDS”

“There’s a lot of complexity that comes from offering multiple machine models,” explains Marc. “We have the Original Line, Vertuo and Professional systems, each with their own unique features and designs. To combat the difficulties that can arise from this complexity, we have undertaken a comprehensive analysis over the past ten months and, as a result, we’re transitioning towards implementing a platform approach.

“This approach opens up exciting opportunities by enhancing technical reliability, optimising investments and simplifying our SKU range. By refining our product lineup and standardising internal components, we can boost reliability, manage costs effectively, and continue to delight our customers with innovative features and attractive designs. Several leading companies have embraced similar transformations with great success, and we’re confident that we, too, can achieve outstanding results.”

However, Marc emphasises that Nestlé Nespresso would not be able to take on this challenge without its robust partnerships.

“Partners and suppliers play a vital role in our growth and operations,” says Marc. “We rely on a broad network of manufacturers, suppliers and distributors to deliver machines of exceptional quality, value, and timely delivery.

“For instance, our collaboration with Breville in the co-development of Creatista machines has been highly successful. This partnership leveraged our extraction technology and Breville’s iconic metallic-based

design, resulting in the creation of some very innovative and high-quality machines.”

And as Nestlé Nespresso continues to innovate, the company is focused on improving the quality of its machines, prioritising durability and sustainability to meet evolving customer needs.

“We really want to prioritise quality over quantity while producing responsibly,” says Marc. “Our focus is on growing the number of reconditioned machines to fulfil our commitment towards reducing greenhouse gas emissions. By implementing a platform approach, we can also reduce technical

©

complexity – resulting in a cascade of positive effects such as fewer SKUs, spare parts, production lines and custom components.

“This approach will enable us to deliver better quality, great value, connectivity experience, circularity options, demand and supply management, and overall customer experience. Our future rests in the deployment of this platform approach, allowing an innovative focus on last-time differentiation.”

As Marc looks to the future of Nestlé Nespresso, he credits the internal team and the company’s manufacturing partners for helping it become a global industry leader.

“We take pride in being one of the largest home appliance makers globally, and we attribute this success to the dedicated team at our headquarters, known as ‘The One team machine,’” celebrates Marc. “These people work tirelessly to provide the most innovative, reliable and competitive machines to our customers.

“We also recognise the invaluable contributions of our manufacturing partners. Our collaborations with well-known distributors have also significantly impacted our supply chain performance, ensuring the seamless delivery of our products to customers worldwide.”

Learn more about Nestlé Nespresso here.

ADDED VALUE

Marc recommends

“I’d like to mention a book that has really helped me develop the tactics to become a better person every day,” says Marc. “Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones by James Clear has made me reflect on how tiny routines can change the way I live my life.

“A very basic example of this is that I was regularly arriving at work without either my badge, my phone or my wallet, which was causing me to lose time. Now, I’ve developed a mnemonic to ensure I have everything I need before I leave the house, which is saving me time and reducing my stress.”

New

connections

“I’m always interested in exchanging ideas with peers and potential partners, because the best ideas come from connection,” says Marc. “I love to travel to our factories and exchange ideas with the people working there –from the shop floor to executives. I’m also very interested in learning about startups that are developing solutions that can solve some of the problems we face. Recently,

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