Nestlé Middle East braces for fivefold Ramadan surge
Nestlé Middle East is expecting demand for its food and beverage products to surge by more than five times over during the Holy Month of Ramadan, according to Eric Maraval, supply chain director for Nestlé in the Middle East.
“Demand surges during this time of year, Maggi soups for instance will see demand spike during Ramadan, increasing by around five times over. This is a huge seasonality spike that we need to plan for long in advance, both in terms of manufacturing capacity and logistics,” he says.
According to Maraval, planning for Ramadan begins a full year in advance, with plans for next year’s Holy Month already in place during the execution of the 2017 plans.
“We’re getting very good at it now,” says Maraval. “By the end of May this year we already had our plans in place for Ramadan in 2018. We share our plans with our 3PLs of course and in terms of storage and trucking capacity for our partners in the region the network is already operating at full capacity for the next month and a half. We share a three month rolling plan with our logistics partners.”
Nestlé Middle East works with Mohebi Logistics in the UAE, accounting for around 50% of all volumes at its new 90,000 pallet position distribution centre in Dubai South, outside the bonded free zone and just days before the start of Ramadan opened its new Al Waha factory down the road.
The new factory will provide employment for 340 people from 20 countries, 60% of whom under 30 years old.
Nestlé already operates two other factories in Dubai Investment Park, one for Nestlé Waters, and another – Nestlé Dubai Manufacturing – covering KITKAT, MACKINTOSH’s Quality Street, and NIDO products.
“Nestlé Al-Maha is yet another way for us to meet our commitment to the Middle East,” said Yves Manghardt, chairman and CEO Nestlé Middle East. “Manufacturing locally enables us to source locally, invest locally, make tailored products to better meet local needs, and serve communities in the region more rapidly and more effectively.”