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Unilever Organized Its Resource Chain Management

Abstract

According to the evaluation of some circumstances of how Unilever arranged its supply chain management, we discovered that Unilever prepared their factories, local source chains, business categories and corporate middle with strategic concentrate and within an operational environment. Plan-source-make-deliver is just how Unilever handled their supply string. Simultaneously, we found that Unilever's supply string management focus on the multi-local aspects of the business enterprise at a nationwide or local level and the multinational aspects.

Introduction

In today's globalised world, every company must face strong competition. Each company must consider many factors if they desire to be successful on the market. One of important elements in this is the supply string management, this calls for as soon as of materials as they move using their company source to the finish customer. Unilever is a global firm plus they have numerous products, as final result the ways they deal with the flow of the product from beginning to the consumers is essential. The question was asked: Just how do Unilever coordinate their supply chain management.

Methodology

The review was conducted by a group of four associates in Middlesex University on the pre-sessional program in August 2010, namely: Lam Trinh, Long Ta, Pan Zhen Zhao and Chi Doan. The instrument found in this study was supplementary research. Where, people of the team used various resources, especially online educational directories to find the necessary articles related to the topic "supply string management" and have a specific English Group, Unilever and its own organising system, as an example. Following the research team had read the educational textbooks, the relevant information was examined and noted in order to assess the primary ideas. The procedure took two weeks. The first week involved choosing the right theme and company. The options were predicated on individual's likelihood and interest in the field of "business and management". The next week included researching resources from the school's learning resources and other reliable sources.

A total of five options were found, of which two were theory-based online journal articles and were obtained through academic directories, and three were from press articles and company-official website.

There are some constraints with the analysis. One of them is that it is difficult for second terminology learners to comprehend sophisticated articles and sophisticated arguments. Furthermore, it is a hard task to identify and gather the best helpful and suitable information for the report amongst numerous of resources.

Literature review

Organizing supply string management (OSCM) is one of the most important things which companies need to do never to lag behind economically in the fast-moving business world. That's the reason this report studies in-depth five articles: Unilever's source string efficiency, Unilever's resource chain vision, resource chain case study, how Unilever aligned its resource chain management, and Unilever's limelight. Relating to "Supply Chain Management Review" (Monahan, Sean; Nardone, Robert, Nov2007, Vol. 11), it has been stated that Unilever has to upgrade facets of its supply chain operations to remain in advance in the fast-moving consumer packed goods industry. Furthermore, Srivni (http://www. zimbio. com/ Jun-19-07) asserted that while Unilever keeping its global branding, its strategy is to own local supply string for local demand to reduce complexity. It seems a lucid technique for OSCM to make profit and consolidate brand effectively.

Findings

In this section, publisher using SWOT evaluation to analyze the inner and external environment of Unilever.

Figure 1

Strengths

Weaknesses

Clearly supply string management vision

highly complex resource chain and development line

Using information technology

Local supply string for local demand

Strong network of sales and distribution

Many products have low profit

Opportunities

Threats

Increasing in environmentally friendly product

Globalization

There are extensive competitors

Strengths

Unilever is a worldwide company so their source chain management appears to be very well prepared. The first durability is Unilever make a clear vision for his or her supply chain management. IEE (www. iee. org, 2004) suggests five strategies on Unilever resource chain management:

'Clearly defined global strategy and a powerful and strong strategy into action processes'.

'Focus on cost lowering, to be achieved through regular monitoring of a standard set of internationally distributed KPIs along with constant data acquisition'.

'Consistent global approach to, delivery of processing superiority'.

'Convergent organization. Evidently defined skill explanations of all resource chain jobs'.

'Established process to allow an instant and affordable implementation of technology'.

Furthermore, Unilever put into practice information technology (IT) in their source chain with the purpose to control the flow of product better. Because Unilever have many factories on earth, they use different type of supply chain for each and every country so they can meet up with the demand of local customers. Strong network of sales and circulation is the one more power of Unilever.

Weaknesses

Unilever have a wide array of product brands (over 1600 brands) but 400 brands constitute over 90% of Unilever's total sales (http://www. zimbio. com, Jun-19-07)good. As a result, the ineffective brands make them money but not very profitable and be one of the weakness point.

Opportunities

Customers target more on the merchandise which can be friendly with environment, it is an chance of Unilever to check out the trend and get more customers from competitors with the strategy in greening their source chain such as slicing emissions. The next chance for Unilever is globalization develop. Their resource chain will find easier to deal with customers because the world without hurdle.

Threats

Unilever set up factories, branches in more than 100 countries and they have numerous competitors from other global companies like P&G and Nestle and also opponents from local. Global corporations with strong brands and experience in management while local companies understand the demand of consumers plus they have support from local government business lead to a hazard for Unilever.

Discussion and analysis

IT solution

According to Srivni (http://www. zimbio. com, Jun-19-07), the first solution for Unilever to organize supply string management is the use of it. First of all, Unilever use organization source of information planning (ERP) system to control activities in supply string. ERP with huge directories can access the position of supply chain such as circulation and sales. As a result they can control the stream of products well and make sure it isn't interrupted. By it in supply string management, company also decrease the costs and improve efficiency in the chain and bring the business nearer to their consumers. Furthermore, IT helps Unilever keep tabs on their products better from circulation centers to stores, they will have right strategy to 'reduce the space of product runs and make other refinements to react quicker to changes in demand' (http://www. zimbio. com, Jun-19-07). Finally, Unilever apply integrated resource management information system (ISIS) which help the accumulated information is analyzed efficiently by supply managers in national as well as global companies. With this technique, its managers may discuss and decide with suppliers plainly and effectively. Therefore, both of them make advantages from this way (Sean Monahan and Robert Nardone, 2007).

Path to Growth

Based on the weakness point in SWOT research, Unilever make a plan name: 'Path to development' give attention to reducing non production items (NPI). Before talking about the results of the plan, this survey is going to analyze the reason why they need to trim NPI. In 2000, there were over 1600 brands belong to Unilever. However, the company recognized that the high earnings brands were around four hundred and many other brands have a large amount of money to organize their supply chain. Unilever made a decision to stop producing over five hundred and sell seven-hundred brands and get over 16 billion euro. With this sum of money, they can invest more in supply chain management system. The goal of this course of action is 'simplify the business and reducing intricacy' (http://www. zimbio. com, Jun-19-07). This plan brings to Unilever many advantages but there are some negatives when Unilever apply 'Path to expansion'. In 2004, their world wide web revenue lost by over 300 million us dollars, and the business still target significantly on local market business lead to fragment in global market.

Conclusion

The reason for this statement is responding to the question: 'How will Unilever plan their supply string management?' The finding is based on the SWOT research which shows the inner (talents and weaknesses) and the exterior (opportunities and risks) environmental in supply string of Unilever. Unilever put it to control their supply string to reduce the cost and improve the effect. They also use plan way to growth to market and stop production over 1000 inadequate brands. These strategies help Unilever to organize their supply chain better and more effectively.

Recommendations

Unilever is a solid company in global market. They have many strengths point however they involve some weaknesses point. Following the process of results and analysis the information of Unilever, the business should target more on the supply string of high profit products to maximize earnings and ensure their supply to customers is promptly.

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