Nestlé has published its latest progress report, explaining the work it has done to implement its palm oil policy. Much of this work involves supply chain mapping. With such a complex supply chain this work can provide challenges. Nestlé’s report highlights the challenges it has faced and the solutions it has used to overcome them.
It has worked with its suppliers to trace its palm oil back to the plantation. One of the key challenges in doing so has been a lack of information upstream in its supply chain. In order to overcome this challenge, Nestlé created, piloted and deployed its Traceability Declaration Document (TDD). Suppliers are required to use the document, stating the supply chain linked to the production of palm oil used in Nestlé’s products. The document encourages communication between suppliers, which in turn helps to address gaps in knowledge in the supply chain.
The information gathered from the TDD enables Nestlé to better determine which of its suppliers are the highest priority to visit. By engaging with its supply chain, Nestlé can support its suppliers to better understand their growing practices and to become compliant with Nestlé sourcing policy.