NexGen Tech Capabilities: Enabling the Rise of Future Hubs to make Unilever Supplier #1 BACKGROUND Unilever has a rich history spanning decades in the FMCG industry with over 400 brands in over 190 countries, with a turnover in 2022 of over 60.1 billion €, and 13 brands with sales of over 1 billion €. Unilever aims to further solidify its position as the Supplier#1 in the market through connected supply chain - delivering superior products, superior service, and superior value. This is based on the pillars of: • Agility & Resilience - We listen to signals and drive timely actions to orchestrate the end-to-end value chain to deliver superior service. • Reshape asset and cost base- We optimise our cost and asset base to drive competitive growth. • Digital transformation- We harness the power of data and 4th industrial revolution technologies to transform end to end value chains, creating a sustainable, competitive edge. • Positive for people and planet- Through our everyday actions we strive to improve the health of the planet and contribute to a fairer more socially inclusive world • Customer Obsession-Our customers is at the heart of our business, and we want to establish a collaboration to win together Unilever was also recently awarded Gartner Master for the fifth consecutive year for our future-fit global supply chain. From mapping the relationships between our suppliers to help manage supply, to understanding the environmental impact of our supply chain, technology is vital for both building resilience and agility and achieving sustainable growth. With the target to become Supplier#1 for our customers Unilever progressed on a journey of integrating its customer operations processes enabled by Hubs for superior customer experience. This process was enabled by products that were created on technologies. CUSTOMER TECH PRODUCTS In today’s dynamic Supply Chain world, effective forecasting, integrated business planning, and agile sales and operations processes are essential for Unilever’s success. To meet these demands, Unilever leverages various advanced technologies such as Kinaxis, Trade Promotion Analytics (TPA), Trade Promotion Management (TPM), PEGA, HighRadius, Oracle Transport Management (OTM), and Azure. Our products span across the verticals right from Forecasting, planning to Logistics. This is what makes our Supply Chain one of the best across the globe. Our capabilities span across : • Integrated Forecasting and Business Planning • Order Management and Stock Allocation • Transportation Management • Claims and Collections Management • Data Management HUB Network Unilever has 7 live hub locations operated by two strategic partners Genpact and Capgemini across the globe mention in the picture below. Hub is a location where the partner resources work 24*6 globally to run the operations, controls, and continuous improvement agenda for all the live markets. Currently we have 2600+resources working in these hubs which is planned to expand to 4000+ resources with full scale implementation of IOPS across markets. Prior to hub operating model, Approx 160+ processes were operated in multiple locations in the markets which are now consolidated in these 7 hubs that helps Unilever drive standardization, agility, and value. With the expertise of our partners the focus is to operate with standard model across process, technology, and organization both in implementation and adoption. Currently these hubs are working to support the respective markets and the focus is to drive synergies and crosspollinate the good work and learning amongst all the hubs. The biggest challenge is how do we that in the ecosystem of two partners and multiple markets. ASK Your team being a strategic advisor to VP Customer Tech, Customer Experience, and Customer Operations, the ask is to build a strategy for Unilever to develop a comprehensive strategy to transform their current operations into touchless and automated "Hubs of the Future." The Consulting team is required to identify key areas of improvement within Unilever's supply chain and operations, and propose innovative solutions utilizing, for e.g., but not restricted to the newer gen technologies (AI, ML, Gen AI, Web3, and blockchain). The organization is interested in proposals that drive process improvements, increase operational efficiency, and amplify customer experiences within the Hub. The proposal can cut across the multiple functions of Forecast, Plan, Deliver, Collect, or can be focussed on a single function but should touch all the core pillars of agility, resilience, Sustainability, and cost optimization are adhered to. Teams are encouraged to think critically, envisioning how these technologies can be synergistically integrated to unlock novel solutions and transform Unilever's Operations Hubs into the ultimate drivers of Supply Chain excellence. Through this case study, Unilever aims to unleash the transformative potential of next-gen technology in optimizing supply chain operations and achieving customer-centric excellence leveraging the Hubs of the Future and pioneer a more efficient and innovative Supply Chain landscape. EVALUATION CRITERIA Criteria Weightage Understanding the core challenge and comprehensiveness of approach 20% Practicality of the solution 20% Measurement and Benchmarks 20% Innovation through Future of Technology 40% GLOSSARY Augmented AI and ML-Powered Precision: Unleashing the prowess of augmented AI, Unilever's Hubs will ingest massive data streams, unleashing predictive and prescriptive analytics. ML-driven algorithms will craft precise demand forecasts, meticulously optimizing inventory, supply, and production. These intelligent systems, integrated seamlessly with Unilever's product suites, will ensure swift and informed decision-making across the value chain. Generative AI: Catalyst of Innovation: Generative AI will become the catalyst of innovation, propelling Unilever to create pioneering eco-conscious packaging solutions and personalized products. This creative revolution will thrive through synergies with Kinaxis, forging cross-functional collaborations that redefine product ideation and execution. Blockchain-Enabled Trust and Transparency: Embracing blockchain and Web3 technologies, Unilever will elevate transparency and trust across its supply chain. Smart contracts will automate claims and collections, ensuring fair, secure, and frictionless interactions. Immutable decentralized ledgers will empower customers to verify authenticity, ethically sourced materials, and sustainability Blockchain-Enabled Trust and Transparency: Embracing blockchain and Web3 technologies, Unilever will elevate transparency and trust across its supply chain. Smart contracts will automate claims and collections, ensuring fair, secure, and frictionless interactions. Immutable decentralized ledgers will empower customers to verify authenticity, ethically sourced materials, and sustainability Sustainable, Agile, and Customer-First Logistics: The future Unilever Hubs will champion sustainability with AI-optimized transportation systems, harnessing delivery drones and autonomous vehicles to reduce emissions and streamline last-mile logistics. These interconnected Hubs will act as beacons of agility, proactively adapting to market demands while preserving eco-consciousness. Touchless Customer Experience Redefined: With AI-driven chatbots and virtual assistants, Unilever will unlock the potential of touchless, hyper-responsive customer experiences. Azure's cloud infrastructure will provide a seamless repository of customer data, enabling real-time personalization and anticipatory service that surpasses expectations. Here is a brief description of the capabilities of Unilever Customer Tech products • Integrated Forecasting and Business Planning The integrated forecasting product utilizes advanced algorithms and machine learning to analyse historical data, market trends, and consumer behaviour to generate accurate demand forecasts. This enables Unilever to optimize inventory levels, minimize stockouts, and enhance overall supply chain efficiency. We manage a monthly inventory of about 1.4 Billion Euros, which is comparable to the annual GDP of several smaller countries. We have an integrated suite of products for effective forecasting and planning. Kinaxis provides a collaborative platform for cross-functional teams to align their plans and strategies. It integrates sales, marketing, finance, and supply chain data to create a holistic view of the business. This facilitates decision-making, risk assessment, and scenario planning to respond effectively to dynamic market conditions. TPA is an advanced analytics tool that unlocks market data insights, powered by a built-in baseline with cannibalization engine and a future scenario event planning module. TPM is a trade-fund management solution for the entire life cycle of promotion planning. These are just some of the many products of our Integrated S&OP solution. • Order Management and Stock Allocation Unilever has suites of products in order management system, powered by PEGA that ensures efficient capturing and no-touch validation of customer orders. It optimizes order-to-cash cycles, provides real-time order status updates to customers and internal stakeholders. Unilever uses SAP AATP platform for intelligent stock allocation, enabling the company to allocate orders optimally among different customers based on reservation, stocks, production plan. This minimizes stock imbalances and enhances customer service levels. So much so that we deliver 8.5 Million of total orders in a year with 84% of our orders being fully automated. • Transportation Management The OTM (Oracle Transportation Management) system is implemented for efficient and cost-effective transportation management. It optimizes route planning, carrier selection, and freight consolidation to streamline logistics operations and reduce transportation costs. Unilever does about ~4 Return trips to the Sun every year with 400K Shipments/month 20K Trucks on road and 1500 Vessels on Sea at any time. Every hour, 600 Trucks and 3 Ships start their Unilever journey! • Claims and Collections Management Unilever employs PEGA and High Radius platform for claims and collections management. It automates the processing of customer claims, refunds, and returns, ensuring timely resolution and customer satisfaction. Additionally, it aids in efficient collections management to reduce outstanding debts and improve cash flow. Unilever has no touch cash application automation of 75%, bringing down overdues to best-in-class industry level of below 7%v • Data Management Data serves as the backbone for all the capabilities we employ in our Supply Chain Management. Azure provides a secure and scalable cloud infrastructure for storing, processing, and analyzing vast amounts of data from various sources. This empowers Unilever to gain actionable insights and make data-driven decisions across all aspects of the business. Our Data Platform is in the Petabytes, supporting over 100 analytics products and 38k monthly users. Data is powering all parts of the business today from Demand Forecasting, through Trade Promotion Optimisation, to Prescriptive sales recommendations which go to the handheld devices of our sales team in the field at any of our 15 million retailers worldwide. By leveraging all the above technologies, Unilever is enhancing operational efficiency, optimizing inventory, and responding rapidly to market changes, ultimately leading to increased customer satisfaction and sustained business growth.