Case Study

Unilever2018-11-15T16:25:06+00:00
supply chain strategy

Business Challenge

Unilever is one of the world’s largest fast-moving consumer goods (FMCG) companies whose purpose is to make sustainable living commonplace.

Unilever products include household-name brands, such as Lipton, Knorr, Dove, Axe, Hellmann’s and Omo.

As a global organization with more than 400 worldleading and local brands, inventory management is extremely challenging. These challenges included:

  • High forecast error rate
  • Excess working capital in inventory
  • Unacceptable service level
  • Frequent plant schedule break-ins
  • Numerous cross-ships in distribution

Solution

Unilever met these challenges by implementing Replenishment+® from Demand Driven Technologies. The solution uses powerful Demand Driven MRP (DDMRP) concepts across Unilever’s personal care and food categories in North America creating one of the world’s largest Demand Driven MRP implementations.

The initial implementation is an end-to-end solution from forward distribution centers through the plants and into key suppliers. Today, nearly every home in the
United States has a product in it that passes through the Unilever DDMRP implementation.

With continued expansion, integration and automation of the solution, Unilever’s Replenishment+ solution will be responsible for a combined product stream worth $1B of annual revenue.

Overall Results with Replenishment+

Service Level
Plant Lead Times
Raw Plant Lead Times & Packaged Inventory
Finished Goods Level

+99%

80%

18%

50%