A system study on the outbound operations of Nestle Philippines Inc.'s North Distribution Center

• Main Authors: Bongato, Anna Mikaella S., Caeg, Luis Enrique I., Concepcion, Samantha R., Clark, Eppie E., panel chair
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: System analysis; Systems engineering; Nestle Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9150
• Institution: De La Salle University

The North Distribution Center of Nestle Philippines Inc. houses a total of 520 SKUs including some of the country's well-known brands such as Nescafe, Nido, Milo, Nestea, Maggi, Bear Brand, Nestle, and Purina among others. As one of the main distribution centers of Nestle, one of their main functions is the delivery of products to key accounts and key distributors. The key performance indicators in fulfilling timely and complete delivery are the on-time delivery, outbound dwell time, and customer services level. For the year 2014, the NDC had an average target dwell time of 4 hours and with an average hit rate of 82.5%. However, the average outbound dwell time from January to December 2014 deviated from the target by 0.46 hours which happens 6.41% of the time, thus resulting to a penalty of Php49,958,650.33. This was considered to be the problem statement of the study. After conducting cause analysis and validation, solutions addressing different causes to the problem were proposed. The causes contributing to the problem were either prolonged processes of delayed start in processes which affected succeeding outbound processes. The solutions suggested were evaluated using the Kepner Tregoe decision analysis to determine the final solution. The final solutions addressing each cause were combined to further determine any decrease in process time.