Pollution caused by the truck fleetis another worrying issue. As Nestle is known to be asustainable and environmentally-conscious brand, it needs to deal with the pollution issuecaused by its fleet, as they exist in almost every step of the supply chain (How DoesTransportation Affect Logistics2019). Moreover, Vietnam has recently agreed with the WorldBank to reduce 10.3 million tons of CO2 emission in industrial operations in the next 5 years(Le 2020). Nestle, as one of the largest manufacturers in Vietnam will soon have to complywith new regulations to avoid penalties. Continuing using a conventional petrol-fueled truckfleet would only impact Nestle Vietnam’s image and hinder the ultimate goal of the NestleGroup: to reduce 50% of its carbon emission by 2030 (Nestle n.d.).Overall, the poor transportation network in Vietnam can become a costly issue for NestleVietnam if no long-term solutions are provided.c.RecommendationsThe first recommendation is toimplement a GPS-based track-and-trace systemfor thedelivery trucks. This can be done in-house or outsourced to a third-party software company. Atrack-and-trace system can significantly improve communication between Nestle and its tradecustomers. Both parties can precisely know the shipment status, including the location,velocity, and ETA in real-time. Should there be an unexpected issue, the system can quicklynotify Nestle and the trade customers to quickly get a hold of the situation and arrangesolutions (Kandel et al. 2011). A more profound benefit is the fact that the tracking systemcan automatically create data logs of transportation history (iThink Logistics 2020). It caninclude the time of each shipment, which route was taken, and even which driver has the bestperformance. All this data can be analyzed using big data analytics and AI solutions to resultin useful information, such as the best timeframe for delivery or the most optimal routes.From the information, logistic managers can make the most appropriate decisions and saveNestle from the various issues of Vietnamese traffic, thus reducing logistics cost andimproving customer satisfaction.Another recommended solution for Nestle is touse environmentally-friendly fuelsuch asE5 biofuel (5% ethanol and 95% petrol, the ethanol is from sustainable-friendly materials).This alternative fuel was sold commercially in Vietnam in late 2017 and has received muchattention from the community (Biofuels International 2017). Scientific evidence has shownthat E5 not only reduces emission but can also increase engine efficiency (Le et al. 2013).20
