Sustainable Operations of End-to-End Closed-loop Supply Chain - Taking Nestlé Nespresso Aluminum Coffee Capsules as an Example

Abstract

In recent years, the frequency of extreme weather events around the world has significantly increased. This is due to the traditional "acquisition - manufacture - disposal" linear economic model, which has caused severe environmental pollution on the planet and consumed a large amount of its natural resources, ultimately leading to a global temperature rise. Consequently, businesses are under growing pressure to transform their supply chains towards more sustainable models. This article will analyze the aluminum coffee capsules of Nestlé, introduce its current supply network, and analyze the sustainability issues faced by coffee capsules in operation and the supply chain. As a leading company in the food industry, Nestlé has set a target to achieve net-zero greenhouse gas emissions by 2050, making such an analysis both timely and relevant. Based on the identified problems, targeted solutions will be formulated to optimize its supply chain and improve its operational efficiency. The proposed solutions aim to address these challenges through circular economy principles, such as product recycling and closed-loop supply chain design.