Unilever Supply Chain Journey to Transformation a Purpose Led Value Network
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UNILEVER SUPPLY CHAIN JOURNEY TO TRANSFORMATION A PURPOSE LED VALUE NETWORK BISH SEN, EVP SUPPLY CHAIN Unilever Supply Chain Built for Scale 488 third party 20.4m tonnes per manufacturers annum 400+ primary distribution centres 50,000 306 factories at 225 sites in 67 countries SKUs 5.5m shipments €34bn annual 104,000 employees procurement spend And Achieving Good Results Gartner Dow Jones Supply Chain Awards CDP Report 2018 Sustainability Index 2018 2019 #1 in Personal Products Gartner SC Top 25 4 Grade-A ratings across Industry Masters Category Climate, Water, Forests, Supplier Engagement It looks like we are winning… …but are we running the right race? The Changing World Customisations & Hyper- Fragmentation Always on Demand Personalisation The Implications From a traditional functional …to 3 essential enterprise processes organisation… The New Mindset The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn. Alvin Toffler Listening to Learn External Internal 70+ organizations 2,000,000+ employees 190+ countries All Clusters $491bn+ revenue All key markets All Divisions 8 different industries Country Visits & Collective workshops Leadership Culture Agility Scale Our Value Proposition ‘We want to capture the hearts of consumers who want to look good, feel good, do good and get more out of life, by offering a unique experience that enables us to exceed their needs and expectations’ • Fulfilment networks • E2E Real time connectivity and visibility We will do this through… • Always on consumption sensing • Employee enrichment • Sustainability (USLP) • Integrated Ecosystems From Order Takers… …to Market Makers Transforming Through Three Success Factors People Platforms Partnerships New Business Models External Manufacturing Partnerships Digitally Rewiring Our Supply Chain Real Time Visibility Integrated Manufacturing & Physical Ops & Analytics Operations of the Future Platforms Our Roadmap for Transformation Real time Visibility & Analytics DIGITAL ECOSYSTEM Integrated Operations Manufacturing and Physical Ops for the DIGITAL VALUE Future NETWORK External Manufacturing and Partnerships New Business Models DIGITAL SUPPLY CHAIN INTEGRATE COLLABORATE ORCHESTRATE Use Cases New Business Models External Manufacturing Partnerships Digitally Rewiring Our Supply Chain Real Time Visibility Integrated Manufacturing & Physical Ops & Analytics Operations of the Future Digital Voice Digital of Consumer Twin Using the Power of a Digital Twin 1 Learn from the past Live in the present To create the future… Digital Factory Foundations Acquire Visualize Analyze & Optimize Operate The Results People Quality VALINHOS: PORT SUNLIGHT: DOVE SOAP SONOLATORS LINE VALUE Sustainability Safety CREATION Subject Matter Expertise Digital & Data Science Technology Expertise PORT SUNLIGHT: TRUMBULL: R&D Expertise Productivity YIELD DATA & PILOT PLANT WASTE INNOVATION Cost KIBON: ICE CREAM Delivery Digital Twin Real Time Visibility & Analytics Our Vision Unilever will be a data-intelligent organization across our end to end value 2 network, supported with the data, analytics and insights to make smarter, faster decisions in order to understand, pre-empt & exceed consumer needs Architecture DATA FOR GROWTH Value Network Digital Twin Real Time Performance Visibility Automated Decision Making DATA INTELLIGENT Buyers Buyers SC Livewire DVOC DFOS Elementum SC Livewire ML DP AERA Console Console Supply Chain Universal Data Lake DATA RICH End-to-End SC Unified cross-functional IoT for Things, Events Extensive Consumer Supply Chain integrated data lakes real time data and Products and External Data Analytics Lab DATA POOR Master and Transaction Data Hygiene Digital Voice of the Consumer Unstructured Data DVOC Platform Analysis & Issue Resolution ECOM Ratings & Reviews SOCIAL MEDIA CONSUMER RELATIONSHIP CONCEPT CARELINES ACCESSIBILITY SCALABILITY VISIBILITY IMPROVEMENT SPEED DVOC VIDEO Thank You QUESTIONS? Unilever Today BRANDS Purpose-led global + local brands: 85% of turnover from #1 or #2 positions GEOGRAPHIC PRESENCE Available in 190 countries. 58% of turnover in Emerging Markets DISTRIBUTION Our Products reach 2.5 billion consumers a day through 30 million outlets. Broad channel expertise MANAGEMENT 80% of leaders are local. #1 FMCG employer in 44 countries Investment in future Creation of more meaningful readiness work through upskilling & reskilling on skills & through new emerging roles that are more mindsets of the future meaty by elimination of repetitive tasks People Development of richer Career Enhancement of the power of paths being Human through more attractive E2E opportunities as By helping you leverage your human strengths well as specialised skills in this digital age Partnerships Digital Multiplier Effect: Realising the Possibilities Orchestration of the Intelligent Virtual Ecosystem Collaboration Exponential interconnectivity cross technology & regions Value Delivered Value Architecture Established 0-3 Sites 4-10 Sites 70+ Sites 18 Months Information & Analytics Info Mgmt Cold Path Cold Warm Path Warm ClassificationDataof Hot Path Hot Descriptive Diagnostic Predictive Prescriptive Adaptive What Happened Why did it Happen What is going to Happen What do we do about it How can I learn for the next (Decision support or Automation) time it happens Information Knowledge Wisdom Outcomes INDIA NORTH AMERICA 30 COUNTERFEIT ECOMM PRODUCT TALENTI MISSING CHOCOLATE CHIPS SOURCES REMOVED PRODUCTION DEFECT IDENTIFIED CHINA OMO DESIGN CHANGE SOUTH AFRICA 3 MONTHS AFTER LAUNCH FACTORY IMPROVEMENT ON OPERATIONS & CHRONIC QUALITY ISSUES (LEAKS) DOVE DESIGN CHANGE AFTER DETECTING 1% LEAKAGE IN 2 MONTHS PERIOD NORTH AMERICA ALERTS 1181 RISK ALERTS ISSUED 20% PREVIOUSLY UNDETECTED NEW CONSUMER PACK ALERTS FROM SOCIAL MEDIA BASED ON SOCIAL MEDIA PAKISTAN SOURCE HALAL CERTIFICATION TO ALL BPC PRODUCTS.