Request For Proposal: NWMT Global Bid HOD Bottles Instructions, Objectives and Guidelines

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Request for Proposal

NWMT Global Bid


HOD Bottles
Instructions, Objectives and Guidelines

Category: Global – HOD Bottles

Issue Date: January 15th, 2009


RFP Due Date: February 17th, 2009

[Note: Intent to Respond & Confidentiality Agreement due January 23nd, 2009]

Contact: Robert Vivian – +1 (303) 705-2229


Global Purchasing Manager HOD
Nestle Waters Management & Technology

Address: 345 Inverness Drive South


Englewood, CO 80112

Email: robert.vivian@waters.nestle.com

This RFP and the information contained herein is the proprietary and confidential information of Nestlé, and is to be used exclusively
for the purpose of responding to this RFP. This RFP and information from this RFP, either written or implied, is not to be used,
discussed or copied for any other purpose except with prior express written consent of Nestlé.

Nestlé Waters
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Table of Contents

I. INTRODUCTION................................................................................................................... 3
II. OBJECTIVES OF THE REQUEST FOR PROPOSAL PROCESS........................................3
III. RFP INSTRUCTIONS AND EVENT CALENDAR.................................................................5
IV. ADDITIONAL RFP GUIDELINES AND TERMS...................................................................7
Appendix A – Vendor Confidentiality Agreement...................................................................9

This RFP and the information contained herein is the proprietary and confidential information of Nestlé, and is to be used exclusively
for the purpose of responding to this RFP. This RFP and information from this RFP, either written or implied, is not to be used,
discussed or copied for any other purpose except with prior express written consent of Nestlé.

Nestlé Waters
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I. INTRODUCTION

A. Company Background

Nestlé S.A. (founded 1867) today is the largest food and beverage company with Global sales over
$98.5 billion CHF in 2006, employing nearly 265,000 people, and having factories or operations in almost
every country in the world. The Nestlé companies are managed through a zone-operating construct
including: Zone EUR (Europe), Zone AMS (North and South America), and Zone AOA (Africa, Oceania,
and Asia).

Nestlé Waters is the leading bottled water company in the world with 19% market share in value. It is a
subsidiary of Nestlé, representing approx. 10% of its sales.

Nestlé Waters has 37 operating companies (subsidiaries or joint-ventures) and ensure product presence
in over 130 countries around the world.

From 5 gallon to 20cl formats, from Home & Office Delivery to mass distribution, not to mention vending
machines, hotels-cafés-restaurants, or petrol stations; our products are distributed everywhere they can
possibly reach the consumer.

Local/international/Nestlé - Premium/value brands – our brands are suited to varying customer


expectations and create value for distributors.

Local brands are at the base of Nestlé Waters’ strategy, and can be found on every continent, from the
United States with Poland Spring, for example, passing through Germany with Fürst Bismark, to Egypt
with Baraka, and even Vietnam with La Vie.
They hold a major position on each market.

Perrier, Vittel, Contrex, S. Pellegrino and Acqua Panna, our International brands, play an important role
as precursors for associating well-being, health and nutritional benefits of mineral waters with new
consumer expectations in terms of pleasure. They are on the front line for identifying or foreseeing needs
and providing highly innovative solutions.

The Nestlé brands, notably Nestlé Pure Life, come from a simple idea:
to produce a water under the same brand from several sites, close to consumers, suited to the needs of
the whole family. You can find the Nestlé brand in over 30 countries.

II. OBJECTIVES OF THE REQUEST FOR PROPOSAL PROCESS

Nestle Waters has long-standing relationships with its current bottle suppliers for the Home and Office
division (HOD). Although Nestlé values these relationships and the high quality services it has received
from suppliers over the years, Nestle Waters has made a commitment to look at a Global approach for

This RFP and the information contained herein is the proprietary and confidential information of Nestlé, and is to be used exclusively for the
purpose of responding to this RFP. This RFP and information from this RFP, either written or implied, is not to be used, discussed or copied for
any other purpose except with prior express written consent of Nestlé.

Nestlé Waters
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HOD. This Global approach will include Nestle Waters North America (NWNA), Latin America (LATAM),
Europe (EUR), Asia/Oceania/Africa (AOA) and the Middle East (MEA). One such area is that of bottles
used in HOD. We welcome your participation in this Request for Proposal (RFP) process and trust that
this process will allow Nestlé to both improve upon the quality of bottles received at our manufacturing
sites and also drive a reduction in spend for this area.

Specific expected results of this Purchasing Initiative:

 Realization of cost savings.

 Identification of cost drivers in the procurement process (from both Nestle Waters and the
supplier’s perspective), development of approaches to collaboratively manage those cost drivers,
with a resulting cost savings/reduction for Nestle.

 Identification and implementation of Specification Rationalization across the markets. While


reducing, where possible, the amount of material used in Nestlé’s bottles.

 Establishment of strong relationships with suppliers, where both parties strive toward innovation
and continuous improvement (financial, quality, etc).

 Creation of a performance driven relationship with an emphasis on value added services and
process improvement.

 Improved quality of product and/or service delivery.

The desired objectives of this RFP process are listed below:

 Develop a long-term, mutually beneficial relationship with bottle supplier/s who can service the
local and/or global Nestle markets.

 Establish a competitive pricing structure.

 Define standards, metrics, performance measurement reporting, and processes to generate


effective, and consistent results for both Nestle and its supplier/s.

 Develop value-added services and processes that focus on Total Cost of Ownership for both
Nestle and its supplier/s.

 Develop a non-exclusive three-year contract with annual renewal options contingent upon
meeting required service levels and other agreed upon performance measures. Except for any
existing Agreements entered into between Nestle Waters and supplier prior to the contract award

This RFP and the information contained herein is the proprietary and confidential information of Nestlé, and is to be used exclusively for the
purpose of responding to this RFP. This RFP and information from this RFP, either written or implied, is not to be used, discussed or copied for
any other purpose except with prior express written consent of Nestlé.

Nestlé Waters
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date, any negotiated contract(s) resulting from this RFP may supersede all existing contracts
between successful bidder(s) and Nestle Waters, in Nestle Water’s sole discretion.

Nestle Waters has defined the expected services to be provided by the bidder, including but not limited
to, services and deliverables related to:

 Comprehensive Stewardship Reporting – as developed by supplier and Nestle Waters


(current status, opportunities, results, achievements, challenges, etc.)

 Transparency of cost in pricing structure

 Project Management (deliverables on a project-by-project basis)

 Regular, recurring strategic planning sessions

 Local market and cross market analyses and identification of opportunities

This RFP and the subsequent evaluation process are designed to ensure that we achieve the above
objectives. Please follow the instructions in the next section to ensure that your submitted response is
eligible for evaluation.

Nestlé makes no representations or warranties regarding the accuracy or completeness of the


information contained in this RFP, including the attachments. Each respondent is responsible for making
its own evaluation of information and data contained in this RFP and in preparing and submitting
responses to this RFP.

Nestlé reserves the right to discontinue or modify the RFP process at any time, and makes no
commitments, implied or otherwise, that this process will result in a business transaction or negotiation
with one or more suppliers. Respondent shall bear all costs incurred in preparing a response to this RFP
and in providing or obtaining additional information to or from Nestlé.

III. RFP INSTRUCTIONS AND EVENT CALENDAR

Bidders should adhere to the following 4-Step process when responding to this RFP:

Step 1 – Submit Intent To Respond and a Signed Confidentiality Agreement - Please review the
RFP document and complete the Intent to Respond section and the Confidentiality Agreement in
Appendix A (this may be attached in Section 3 of the Ariba event). Attach the completed form in Ariba
before 5 pm EDT on Friday January 23rd, 2009 and ensure your form is saved as a separate Word file
prior to returning. Do not return the entire RFP document. Please provide your company’s name and the
name, telephone number, and e-mail address of the individual who will be your company’s primary
contact during the RFP process.

This RFP and the information contained herein is the proprietary and confidential information of Nestlé, and is to be used exclusively for the
purpose of responding to this RFP. This RFP and information from this RFP, either written or implied, is not to be used, discussed or copied for
any other purpose except with prior express written consent of Nestlé.

Nestlé Waters
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Upon receipt of your companies Intent to Respond and signed Confidentiality Agreement, you
will then be given access to the entire RFP on Monday January 26th, 2009.

Step 2 – Submit Any Clarifying Questions – After thoroughly reviewing the RFP, submit any questions
on this proposal, in writing, through the Ariba Q&A Board on or before 5 pm EDT on Friday January 30th,
2009.

Please preface ALL questions with the Country and Zone to which your question pertains.

Nestlé will collect all questions and will distribute responses as appropriate. Nestlé will not accept
questions by phone. Any contact with Nestlé employee(s) or partner(s) regarding this RFP may be
grounds for removal from any subsequent selection process.

Step 3 – Prepare RFP Response - Please respond to all questions, including questions related to
pricing structure, in detail through the Ariba tool. Although, in most cases, there are no limits to length of
responses, we expect your responses to be concise.

Step 4 – Submit RFP Response - All responses must be received on or before 5 pm EDT, Tuesday
February 17th, 2009. Nestlé may, in its sole and absolute discretion, entertain exceptions to the
response date and/or extend the due date for all bidders if, in Nestlé’s judgment, such action is
necessary to satisfy the requirements of the RFP process.

Failure to comply with this requirement may result in rejection of the response. The major milestones of
this RFP process are summarized in the table below:

RFP Event Date


Launch RFP & Distribute Documents January 15th, 2008
Complete Intent to Respond and
5 pm EDT, January 23nd, 2009
Confidentiality Forms
Submit Clarifying Questions to Nestlé 5 pm EDT, January 30th, 2009
Submit Final Bidder Response 5 pm EDT, February 17th, 2009

Based on the RFP responses, select bidders may be invited to present their service and technology
capabilities at a supplier presentation at the NWMT corporate headquarters in Paris France. The
purpose of the supplier presentation is to provide a demonstration of the supplier’s capabilities to service
the Nestle Waters in individual markets and/or Globally and to allow suppliers to answer general
questions about their proposals.

Nestle Waters will base the supplier selection on categories similar, but not limited, to the following (not
listed in any order of importance):

This RFP and the information contained herein is the proprietary and confidential information of Nestlé, and is to be used exclusively for the
purpose of responding to this RFP. This RFP and information from this RFP, either written or implied, is not to be used, discussed or copied for
any other purpose except with prior express written consent of Nestlé.

Nestlé Waters
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 Strategic perspective
 Competitive pricing
 Creativity / flexibility
 Reporting capability
 Account management / Project support – Local and Global
 Technology
 Services / Products
 Implementation Process
 References
 Completion of the RFP
 Market geographic alignment / coverage
 Reputation and financial strength

 Successful testing of bottles in Nestlé’s manufacturing /distribution environment

Nestle Waters does not represent that this is the sole criteria, and reserves the right to adjust selection
criteria at any time until final supplier selections are made.

IV. ADDITIONAL RFP GUIDELINES AND TERMS

Please carefully review the following guidelines and terms that apply to this RFP. Submission of the
Intent to Respond Form will be interpreted as an understanding and acceptance of these guidelines and
terms:

1. Disclaimer - This is not a contract offer by Nestlé; a bidder’s response to this RFP does not bind
Nestlé in any way. For bidder’s rights to withdraw its response, see section entitled “Right of
Withdrawal.” Any costs incurred in responding to this RFP are the responsibility of the bidder.

2. Right of Rejection / Acceptance - Nestlé reserves the right to reject any or all responses, to
accept any response, part of any response or to select any combination of responses. Nestlé
reserves the right to waive any irregularity contained in any response. No response will be
accepted unless Nestlé specifically invited the Bidder to respond.

3. Right of Withdrawal - Responses may be withdrawn at any time prior to the RFP Proposal Due
Date. A response may not be withdrawn on the RFP Due Date or within 270 days following such
date.

This RFP and the information contained herein is the proprietary and confidential information of Nestlé, and is to be used exclusively for the
purpose of responding to this RFP. This RFP and information from this RFP, either written or implied, is not to be used, discussed or copied for
any other purpose except with prior express written consent of Nestlé.

Nestlé Waters
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4. Award Of Contract – To the extent that Nestlé awards a contract, it will be awarded to the
company(ies) deemed best suited by Nestlé, in its sole discretion, to meet Nestlé’s needs.

5. Volumes and Business Profile - All volumes and business profiles are projections only. Both
volumes and business profiles may change due to changes in Nestlé business strategy or
external business conditions.

6. Legal Authority - The proposals sent in response to this RFP must be submitted by a person
having legal authority to bind the bidder.

7. Bidder Selection and Presentations – Following our analysis of all RFP responses received,
finalists may be asked to give a capability presentation to our selection committee.

8. Proposed Contract Term - The intended initial term of any contract awarded will be three (3)
years and subject to Nestlé’s annual review. The Proposed date of commencement will be within
the first half, 2009 (market specific). Nestlé reserves the option to further extend the Agreement
beyond the initial period; the parties to the Agreement will work together to institute this process.
Notwithstanding, Nestlé shall retain the right to terminate the Agreement for any reason with 30
days written notice.

9. Pricing/Tender Evaluation - The pricing you specify in your bid should be valid for the duration
of the Contract (3 years), subject to quarterly changes for Polycarbonate resin movements only
(identified in the PC resin escalator/ de-escalator mechanism). All other costs to remain
unchanged for the contract term.
All pricing should be quoted in the local currency (destination of delivery).
Nestlé reserves the right to obtain further information from vendors at any time and to terminate
negotiations at any time without incurring any liability.

10. Settlement Terms – Payment - Nestlé has identified several key initiatives aimed at improving
our purchasing processes. The fundamental goal is to improve the way we run and conduct our
business and as part of these improvements, Nestlé will be looking for the most competitive /
flexible payment term available.

This RFP and the information contained herein is the proprietary and confidential information of Nestlé, and is to be used exclusively for the
purpose of responding to this RFP. This RFP and information from this RFP, either written or implied, is not to be used, discussed or copied for
any other purpose except with prior express written consent of Nestlé.

Nestlé Waters
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Appendix A – Vendor Confidentiality Agreement

Nestle Waters, Inc. and/or its affiliated companies (hereinafter jointly referred to as "Nestle") is
interested in discussing the possibility of obtaining materials and/or services from [name of Vendor]
of [address] ("Vendor"). Such discussions will involve
the disclosure by Nestle to Vendor of certain business, technical and marketing information and plans which
are considered to be confidential and proprietary to Nestle, including but not limited to processing and
production information, equipment, specifications and standards, volume requirements, packaging samples
and information, marketing plans and strategies, as well as Nestlé’s interest in prospective new products, and
in the above-identified subject matter (hereinafter "Nestle Information"). The disclosure of such information is
subject to the following terms and conditions:

Vendor agrees that for a period of three (3) years from the date of this RFP, Nestlé Information
disclosed or furnished to it will be held in confidence by Vendor and will not be reproduced or disclosed to
others. Within Vendor's organization, dissemination of Nestle Information will be restricted to those
employees involved in the quotation and/or supply of materials or services to Nestle and who have been
informed of the terms and conditions of this Agreement. Nestle Information will be used by Vendor solely for
the purpose of providing quotations and/or supplying materials or services to Nestle and shall not be used for
any other purpose.

The obligations set forth in the preceding paragraph shall not apply to such part of Nestle Information
which Vendor can demonstrate by tangible evidence (a) was already known to it prior to receipt from Nestle,
(b) is or shall become public information through no breach of this Agreement, or (c) is received by Vendor
without restriction from a third party having no secrecy obligation to Nestle.

Nestle Information shall remain the property of Nestle and will be promptly returned upon request.

Nothing contained herein shall obligate Nestle to purchase any materials or services from Vendor or
obligate Vendor to supply any materials or services to Nestle.

This Agreement sets forth the entire agreement between the parties respecting its subject matter. No
change or modifications of any of its terms shall be effective unless in writing signed by the authorized
representatives of the parties.

[name of Vendor] .

By (signature)

Title

Date

This RFP and the information contained herein is the proprietary and confidential information of Nestlé, and is to be used exclusively for
the purpose of responding to this RFP. This RFP and information from this RFP, either written or implied, is not to be used, discussed or
copied for any other purpose except with prior express written consent of Nestlé.

Nestlé Waters
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