To guarantee its global palm oil supply chain is deforestation-free by 2020, Nestle will use Starling’s satellite service.
Starling will provide year-round monitoring of land and forest coverage changes. Non-compliant suppliers will be suspended from doing business with Nestle. The progress of Nestle’s responsible sourcing practices will start with palm oil and extend to cover pulp and paper supply chains.
Video Spotlight: How Starling supports Nestle in monitoring their forest impact
This post is based on the FoodBev.com article, Nestlé to use Starling satellite service to monitor deforestation, by Martin White, September 14, 2018; and the YouTube video, How Starling supports Nestle in monitoring their forest impact, by Airbus Defense and Space, December 1, 2017. Image source: luoman/Getty Images.
1. How does Nestle deliver a 100% deforestation-free promise in its global palm oil supply chain?
Guidance: Nestle will use Starling’s satellite monitoring service to ensure there is no change in land and forest coverage in areas where it sources its palm oil. Nestle will suspend non-compliant suppliers and disclose all relevant information on their Transparency Dashboard website.
2. What is the significance of Nestle’s responsible sourcing practices from an operations management perspective?
Guidance: Responsible sourcing is a way for Nestle to demonstrate its commitment to environmental sustainability. Nestle will also be a leader in going beyond supplier certification to actual monitoring of suppliers’ compliance 24/7. Nestle is trusting that its responsible sourcing practices will provide a competitive edge for its business.