Green and Smart Supply Chains: Evaluating Nestlé Malaysia’s and Danone’s Strategic Approaches to Sustainability and Efficiency

Abstract

This study examines the supply chain management practices of Nestlé Malaysia and its main competitor, Danone Malaysia, with a focus on sustainability, digital transformation, and competitive strategy. The analysis explores how both multinational corporations integrate global and local sourcing, utilize advanced technologies such as artificial intelligence (AI) and blockchain, and adopt sustainable practices to enhance efficiency and resilience. Nestlé Malaysia emphasizes end-to-end digital integration through the GLOBE platform, local sourcing, and its commitment to achieving net-zero carbon emissions by 2050. In contrast, Danone Malaysia applies a demand-driven supply chain model supported by data analytics and sustainability principles aligned with its B-Corp certification and plant-based product innovations. The study highlights that Nestlé’s competitive advantages lie in operational efficiency, strategic partnerships, and affordability, while Danone’s strengths are rooted in ethical branding and environmental responsibility. Despite challenges such as global disruptions, rising costs, and regulatory pressures, both companies demonstrate that sustainable and digitally enabled supply chains are essential for long-term competitiveness and stakeholder trust. This comparative analysis provides valuable insights into how digital innovation and sustainability can be integrated into supply chain management to achieve business resilience and global sustainability goals.