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Nestlé launches global procurement hub in Malaysia



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Nestlé recently launched its global procurement hub in Kuala Lumpur last Thursday (23 Nov). The launch was officiated by YB Dato’ Seri Ong Ka Chuan, second minister of International Trade and Industry, and Dr Magdi Batato, executive vice president and head of operations, Nestlé S.A.

As one of the group’s three global procurement hubs, known as ‘Nestrade’, the global procurement hub in Malaysia will source required ingredients, materials and services from around the world to supply the needs of over 100 countries globally. A team of around 130 staff have been employed in the Malaysia hub to oversee and conduct procurement activities for Nestlé markets across the globe.

On that note, a Nestlé representative for the Global Procurement Hub, commented: “We are confident that the establishment of the global procurement hub will continue to facilitate knowledge transfer and open up greater talent development opportunities as well as upskill of capabilities to the local workforce in the future.”

Dato’ Chuan commented: “As we move closer towards realising the objectives of the government’s Economic Transformation Programme, the government is firmly focused on its vision to position Malaysia as a preferred investment destination and among the most globally competitive trading nations by 2020.”

“In line with this, it is heartening to note that a leading multinational company such as Nestlé has selected Malaysia as one of its three sites across the world for its global procurement hub. This is indeed a good reflection of our nation’s potential.”

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According to Dr Batato, “This new Global Procurement Hub will provide the Nestlé Group with enhanced strategic Procurement support, delivering competitive and innovative solutions to help drive the Group’s overall objective for sustainable growth. Given Malaysia’s proven track record of success, it is the ideal country for this hub, with all the right elements which will enable us to realise our vision to deliver procurement excellence for Nestlé.”

Additionally, the Nestlé representative also told Human Resources that the hubs will provide a wide range of services, including the management of global procurement for specific raw materials such as cocoa and coffee, packaging materials, as well as other procurement-related services for all markets.

He added: “As such, the employees we hire will need to have the skills and expertise to manage procurement-related services for the hub.”

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