Optimal Sustainable Distribution Network: The case of Nespresso

Ana Catarina dos Reis Machado Rolo

Key information

Authors:

Ana Catarina dos Reis Machado Rolo (Ana Catarina dos Reis Machado Rolo)

Supervisors:

Ana Paula Ferreira Dias Barbosa Póvoa (Ana Paula Ferreira Dias Barbosa Póvoa); Bruna Alexandra Elias Mota (Bruna Alexandra Elias Mota)

Published in

01/29/2021

Abstract

The consumption of coffee in capsules has grown in recent years due to the convenience it offers to consumers. This factor combined with the growth in the commercialisation of this type of product through the e-commerce channel and the requirement from consumers to obtain the products as quickly as possible, has challenged Nespresso to have an optimised supply chain. Therefore, this project explores this need and focuses on the design and planning of the Nespresso distribution network. Furthermore, the concept of sustainability, and its three dimensions: economic, environmental and social, will be integrated into the definition of the different entities in the supply chain, so these objectives are studied. Firstly, the case study is presented, in which several aspects related to Nespresso are highlighted, such as its supply chain, sustainability policies, the constitution of its coffee capsules, the collection and recycling process, and more specifically, the origin of this project and which part of the supply chain will be analysed. Afterwards, a literature review is performed on the most relevant concepts for the problem, and the model that will serve as the basis for the case study is presented. This model assesses the three dimensions of sustainability and enables the analysis of demand uncertainty. In addition, data of the case study are presented. With the application of the model to Nespresso, an analysis of the results is prepared, and some recommendations are listed for a sustainable distribution networks that perform well in all three dimensions.