Question

Identify three existing key customer constituents of Springfield Springs bottled water and perform a profitability analysis on each.

Answer 1

Three existing key customer constituents of Springfield Springs bottled water

Nestlé Waters have continued exploring opportunities to further reduce our distribution footprint. New initiatives have been launched throughout our organization. Some of these success stories are detailed in the following pages, highlighting new opportunities in the next few years. Today, the Nestlé Waters’ transport policy focuses on the following five key areas:

1. Reducing distance to consumers
2. Using alternative transport
3. Exploring new technologies
   
4. Optimizing payload
   
5. Working with our carriers

1. Reducing Distance to Consumers

Because the bottled water industry involves large volumes of product, transport is a primary consideration and, therefore, the vast majority of our business is locally focused. In 2015, 93% of Nestlé Waters’ production was sold in its country of origin

2. Using Alternative Modes of Transport

At Nestlé Waters, we explore all economically-feasible opportunities to divert an increasing share of our transported tonnage from roads.

3. Exploring New Technologies

Nestlé Waters carefully follow the development of any new technologies that would improve environmental performance for any given mode of transport. In particular, our Home and Office businesses in North America have initiated pilot projects to replace their regular truck fleet with hybrid trucks (gasoline and electric engines).