Module Title: Supply Chain Strategy & Processes

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Table of Contents
1. Introduction.........................................................................................................................................3
2. Quality of the operations performance objectives..............................................................................4
3. Analysis the global supply chain of Unilever’s company by identifying its supply chain members......6
3.1 Upstream Supply Chain Members.....................................................................................................6
3.2 Downstream Supply Chain Members.................................................................................................9
4. Explain Unilever operations performance objective sustainability and compare it with one of its
competitors...............................................................................................................................................11
Recommendation......................................................................................................................................12
Conclusion.................................................................................................................................................13
Reference..................................................................................................................................................15
 1. Introduction

In today's complex and dynamic business world, the "Supply Chain Strategy &
Processes" module focuses on the crucial elements of developing and operating an
effective supply chain. It looks at the operational procedures, frameworks for making
decisions, and strategic factors that go into designing and perfecting a supply chain
network. Supply chain processes are the interrelated set of operations that turn raw
resources into finished goods before shipping them to clients. The steps of these
procedures typically include procurement, production, inventory control, logistics, and
customer service. Companies may optimize operations, cut costs, improve customer
happiness, and gain a competitive advantage in the market with the help of a well-
designed supply chain strategy (Jacobs el at., 2014). For my report I have been chose
Unilever multinational company. An international manufacturer of consumer goods,
Unilever is based in London, United Kingdom. Unilever, which was established in 1930,
has developed into one of the biggest and most significant businesses in the global
consumer products sector. Unilever is dedicated to enhancing society through its
corporate activities. The business participates in numerous community projects,
donates to charitable organizations, and promotes inclusion and diversity in the
workplace. Unilever N.V. and Unilever PLC make up the two heads of the company.
Despite being individually listed, these two entities run a single company. Unilever may
have a cohesive worldwide presence thanks to this structure while still keeping
corporate governance flexibility (Krajewski el at.,2010). The business engages in a
number of industries, including food and beverage, home care, personal care, and
refreshments. Unilever provides a wide selection of well-known brands in a number of
different categories. Just a few of its good names include Lipton, Dove, Axe,
Hellmann's, Knorr Magnum, Vaseline, and many more good brands. These businesses
supply products that cater to consumer demand in markets with private care, beverage
and food, and home care Unilever aims to encourage sustainable living by offering
goods that improve consumer wellbeing while having a negligible negative impact on
the environment. By placing a significant emphasis on sustainability, product innovation,
and ethical business methods, the company has established a solid reputation and
attained widespread success in the consumer products sector.

The own care goods area of Unilever with a vital range of brands and goods that cater
to the demand for personal, beauty, hygiene, and grooming. Among the best brands
which come up in Unilever's cosmetics portfolio include the brand, Axe, Sun Silk, Lux,
Vaseline, Rexona, and Dove. Dove, in especially, is a popular name in the company's
Personal Care products line (Chopra and Meindl 2015). It provides a range of beauty
products, shampoos, conditioners, and grooming items. Dove is well renowned for
emphasizing the growth of real beauty, inclusivity, and confidence. The Dove product
line includes moisturizing washcloths, lotions, conditioners, shampoos, and deodorants.
These items are made to nourish, hydrate, and gently take care of the skin and hair.
Dove has become well known for its "Real Beauty" campaign, which embraces diversity
and subverts conventional notions of beauty. The personal care product line from
Unilever, which includes the Dove brand, exemplifies the company's dedication to
offering high-quality goods that satisfy consumers' changing requirements and tastes.
Unilever strives to deliver goods that improve wellbeing while simultaneously taking
sustainability and social responsibility into account through ongoing innovation,
marketing, and supply chain initiatives.

2. Quality of the operations performance objectives

Let's set "Quality" as the performance goal for operations. Delivering goods or services
that consistently meet or exceed customer expectations is the key emphasis of the
quality performance target for operations (Harrison el at., 2014). A high level of
customer satisfaction is achieved by ensuring that items are free from flaws, function as
intended, and are reliable. Here is a closer look at the significance of operational quality:

 Customer Satisfaction: Customer satisfaction is significantly influenced by

quality. When goods and services function well, are dependable, last a long time,
and leave customers satisfied overall, the customer experience is improved and
 customer loyalty is increased. Offerings of a high caliber can result in satisfied
customers, repeat business, and lasting business partnerships.
 Cost Reduction: Numerous options exist for quality to reduce costs. Businesses
can cut down on waste, rework, and returns by concentrating on defect and error
prevention (Baird el at.,2011). The supply chain can have fewer interruptions,
warranty costs can be reduced, and operational efficiency can be increased by
putting in place strong quality control methods and maintaining supplier quality.
 Continuous Improvement: Initiatives for continuous improvement like Total
Quality Management (TQM) and Six Sigma are directly related to quality. These
approaches seek to locate and remove the underlying causes of quality
problems, promote process improvement, and raise overall organizational
effectiveness.
 Employee Engagement: Organizations that prioritize quality encourage a
culture of ongoing development and worker involvement. Companies may raise
employee morale, contentment, and productivity by including staff in quality
projects, empowering them, and rewarding their efforts to quality improvement.
 Brand Reputation: The brand reputation of a corporation is directly impacted by
quality. Delivering superior goods or services on a regular basis increases
reputation and confidence in the marketplace. A strong brand reputation not only
draws customers, but also sets the business apart from rivals and enables
premium pricing.
 Operational Efficiency: Quality is the primary driver of operational success and
efficiency. Businesses may improve resource use, minimize bottlenecks, and
streamline their processes by getting rid of flaws and errors. As a result,
production rises and lead times and throughput increase (Christopher el at.,
2011).
 Regulatory Compliance: Maintaining quality is crucial for compliance in sectors
with tight laws and standards. Companies can guarantee the security,
dependability, and legality of their goods or services by complying to quality
standards and rules. This is especially important in fields like healthcare,
pharmaceuticals, the food industry, and the automobile industry. While cost,
 speed, flexibility, and dependability are also essential operations performance
goals, it's important to remember that firms must balance these goals with quality

in order to meet consumer demands and their entire business plan.

Figure 1: Unilever Supply Chain

3. Analysis the global supply chain of Unilever’s company by

identifying its supply chain members

The many supply chain participants in Unilever's worldwide supply chain, both upstream
and downstream, are crucial to ensuring the efficient movement of materials, goods,
and information. An overview of the major supply chain participants in the worldwide
supply chain of Unilever is provided below:

3.1 Upstream Supply Chain Members

 Raw Material Suppliers: Unilever purchases raw materials from numerous

suppliers all around the world. For Unilever's wide range of products, these
suppliers provide the essential ingredients, packaging supplies, chemicals, and
other elements. Unilever purchases a variety of agricultural raw materials from
 vendors around the world. Ingredients including palm oil, tea, cocoa, soybeans,
dairy goods, fruits, vegetables, and spices are among them. For a variety of
chemicals and additives used in its products, Unilever depends on chemical
suppliers (Sadikoglu and Zehir 2010). Surfactants, perfumes, preservatives,
colors, and other specialty compounds used in formulation fall under this
category. Suppliers who specialize in providing materials like plastic resins,
paperboard, glass, metal, and other packaging components are used by Unilever
to get its hands on their supplies.

 Contract Manufacturers: Contract manufacturers make Unilever's products on

the company's behalf. These producers could be experts in particular
geographical areas or product groups. To ensure adherence to quality standards,
production schedules, and compliance with environmental and social
responsibility norms, Unilever works closely with them. Contract producers with
expertise in particular product categories are used by Unilever. These producers
are skilled at creating specific product categories, such as food, personal care, or
home care products. They work with Unilever to make sure that quality standards
and product requirements are followed (Cole el at., 2019). Unilever collaborates
with contract package makers in addition to contract manufacturers for
production. These partners are experts in packaging and labeling Unilever's
products, making sure that they adhere to packaging design guidelines, branding
standards, and legal requirements.

 Co-packers: Co-packers are also used by Unilever to manage product

packaging. Given their proficiency in packaging design, labeling, and final
product assembly, these partners can guarantee that goods are packed in
accordance with Unilever's guidelines and brand requirements. Unilever works
with co-packers who are experts in developing and designing packaging. To
design unique and enticing packaging for Unilever's products, these partners
collaborate closely with those teams (Villena and Dhanorkar, 2010). They aid in
 creating package materials, forms, dimensions, and visuals that complement
Unilever's brand identity and customer preferences. In order to create displays
and point-of-sale materials for its products, Unilever collaborates with co-
packers. For the purpose of handling the final packaging and assembly of its
products, Unilever collaborates with contract packaging co-packers.

 Technology and Equipment Suppliers: As part of its upstream supply chain,

Unilever works with technology and equipment suppliers to ensure effective and
cutting-edge manufacturing procedures. These vendors offer Unilever production
tools, automation systems, and productivity, quality, and sustainability-enhancing
machinery. Unilever collaborates with vendors who are experts in producing
machinery and equipment for the consumer goods sector. Equipment like filling
machines, packing machines, blending and mixing equipment, labeling
machines, and material handling systems are provided by these vendors.
Unilever makes certain it has access to cutting-edge equipment, automated
systems, and sustainable technologies through its partnerships with technology
and equipment vendors. By doing this, the business is able to accomplish its
sustainability goals while enhancing its production capabilities, increasing
operational effectiveness, and maintaining product quality.
 Figure 2: Unilever Supply Chain Members
3.2 Downstream Supply Chain Members

 Distributors and Wholesalers: For Unilever, distributors and wholesalers are

crucial components of the downstream supply chain. They are essential to
Unilever's product distribution and availability to retailers, supermarkets, and
other sales channels. Distributors that work with Unilever serve as a bridge
between the business and customers or retailers (Peters el at., 2019).
Distributors frequently have a well-established infrastructure and network for
connecting with a variety of retailers or sales locations within a certain
geographical area. Wholesalers, who purchase goods from Unilever directly and
resell them to retailers or other companies, are a part of the company's supply
chain. Unilever's products are bought in bulk by wholesalers, who then divide the
stock into smaller amounts for distribution to retailers.

 Retailers: For Unilever, retailers play a crucial role in the downstream supply
chain. They are the last supply chain link that communicates with customers
directly and facilitates the sale of Unilever products (Savitz and Weber 2014).
Products from Unilever are widely accessible in large grocery chains and
hypermarkets around the world. These merchants offer a wide variety of
consumer items across numerous product categories, including Unilever's
brands. These merchants include Walmart, Tesco, Carrefour, and Kroger, to
name a few. To access a larger customer base, Unilever has increased its online
presence and formed partnerships with online merchants. Products from Unilever
are also sold in cheap retailers, which draw customers with high standards of
affordability. These merchants concentrate on providing a large selection of
goods at reduced costs. Dollar General, Aldi, Lidl, and Family Dollar are a few
examples.

 Logistics and Transportation Providers: The flow of commodities from

manufacturing facilities to distribution centers, and finally to retailers and
 customers, is made possible by the services of logistics and transportation
companies, which are important downstream supply chain participants for
Unilever (Lawrence el at., 2018). In order to guarantee the effective and prompt
delivery of Unilever's products, these suppliers provide a variety of logistical and
transportation services. Transporting commodities from Unilever's production
facilities to distribution hubs or directly to retailers is the responsibility of freight
forwarders. They manage logistical planning, paperwork, customs clearance, and
the coordination of many means of transportation, including air, land, and marine
freight. Unilever may work with 3PL companies that provide all-inclusive logistics
solutions. These service providers oversee several facets of the supply chain,
such as inventory control, order fulfillment, and transportation.

 Consumers: The final link in the Unilever supply chain is the consumer. They
are the people who will actually consume Unilever's products, and as such, they
have a significant influence on demand as well as the marketing and product
development plans of the business. Understanding consumer preferences,
satisfying their requirements, and fostering brand loyalty are all goals of Unilever.
Products from Unilever are purchased by individuals for their own use. They
consist of the homes, people, and families who purchase Unilever products via
merchants, supermarkets, convenience stores, or online marketplaces (Dirisu el
at., 2013). Unilever produces some goods that are aimed towards institutions and
corporations. Customers who strongly identify with Unilever's brands and goods
have the potential to become brand evangelists and influencers.
 Figure 3: Performance Evaluation in an organization

4. Explain Unilever operations performance objective sustainability

and compare it with one of its competitors.

Let's concentrate on Unilever's operational performance goal of sustainability, which is a

crucial component for organizations that manufacture consumer goods. In order to
lessen its influence on the environment and increase its social impact, Unilever has
incorporated sustainability into the core of its business strategy. Under its Sustainable
Living Plan, the corporation has established challenging goals like lowering greenhouse
gas emissions, improving water management, and boosting the incomes of small-scale
farmers. Additionally, Unilever has put an emphasis on eco-friendly manufacturing
procedures, ethical packaging, and sustainable raw material procurement. The
dedication to sustainability at Unilever has produced a number of advantages. First off,
it has assisted the business in establishing a solid reputation as a socially and
environmentally concerned brand (Mirvis, 2011). This appeals to customers who are
increasingly looking for ethical and environmental products. Due to its sustainability
activities, Unilever has been able to stand out from rivals and draw in eco-aware
customers, increasing brand loyalty and market share. Let's now contrast Unilever's
environmental initiatives with those of a rival company, Procter & Gamble (P&G).
Although P&G, another significant company in the consumer products sector, has made
sustainability promises as well, the scope and concentration of its programs may not be
the same as Unilever's. P&G has set objectives to lower its greenhouse gas emissions,
preserve water, and increase the sustainability of its packaging. Unilever, on the other
hand, has a reputation for being a pioneer in the industry when it comes to
sustainability, frequently scoring well on sustainability indices and winning awards for its
work (Iglesias el at., 2023). The importance of sustainability is acknowledged by both
Unilever and P&G, but Unilever's sustainability mission seems to be more deeply
ingrained in its overall corporate strategy and culture. Beyond environmental
sustainability, Unilever is dedicated to social impact, such as advancing gender equality,
just pay, and community improvement. This more comprehensive strategy aids Unilever
in developing a favorable social reputation and winning over a wider range of
stakeholders. In conclusion, Unilever has benefited greatly from its operations
performance goal of sustainability. It has made it possible for Unilever to improve the
reputation of its brand, encourage consumer loyalty, create operational efficiencies, and

promote social and environmental welfare. Although P&G and other rivals have also
committed to sustainability, Unilever stands out in the consumer products sector with its
all-encompassing strategy.

Figure 4: Shows Unilever’s performance against the FTSE 100 index

Recommendation

Here are some suggestions for the business based on the research of Unilever's
worldwide supply network and its operational performance goal of sustainability:

 Strengthen Supply Chain Transparency: By giving more specific information

regarding its suppliers, sourcing procedures, and environmental initiatives,
 Unilever ought to keep to improve openness throughout its supply chain (Ho el
at., 2015).
 Collaborate with Suppliers: Collaboration between Unilever and its upstream
supply chain participants, such as suppliers of raw materials, contract
manufacturers, and co-packers, has to be improved. This cooperation might
entail exchanging best practices, working together on research and development
projects, and establishing sustainability objectives.
 Enhance Collaboration with Retailers: Unilever has to improve communication
with retailers and other participants in the downstream supply chain. Unilever can
make sure that its environmental goals are aligned across the distribution
process by collaborating closely with retailers (Tang and Musa, 2011).
 Engage and Educate Consumers: Unilever needs to keep informing and
educating customers about the value of sustainability and the beneficial effects of
their purchasing choices.

Conclusion

Consumer products company Unilever has a large number of both downstream and
upstream supply chain actors. The company collaborates with suppliers of raw
materials, contracted producers, copackers, providers of technology and machinery,
wholesalers, suppliers, and retailers, in addition to collaborating with logistics and
transportation firms, and ultimately with customers. Unilever has established itself as a
sustainability leader in the market for consumer goods industry. Sustainability is one of
its operational performance goals that sets it apart from competitors and has become
recognized as a critical success factor (Menguc and Ozanne, 2010). In addition to
improving Unilever's brand reputation, its commitment to reducing its environmental
impact, promoting ethically produced goods and packaging, and strengthening social
impact has improved operational effectiveness and reduced costs. It is evident that
Unilever has more thoroughly integrated sustainability into its larger company strategy
and culture when comparing its sustainability activities to those of a competitor like
Procter & Gamble. Unilever has established itself as a brand that is socially and
environmentally conscious because to its comprehensive plans, which cover both of
these challenges (Jurietti el at., 2917). This positioning attracts customers who hold
similar values and fosters brand loyalty. Unilever's operation's achievement of the goal
of sustainability has helped the company's reputation, efficiency in operation, and
profitability. By placing a significant emphasis on sustainability, Unilever has
demonstrated its commitment to constructing a better future. In the consumer goods
market, the business has additionally developed itself as a pioneer in sustainable
business methods.
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