In this blog series, we look at the Top 3 Supply Chains of 2017 as ranked by Gartner. In Part 1 and 2, we talked about 3rd and 2nd place: Inditex (Zara) and McDonald’s respectively. In this last post of the series, we will introduce the winner crowned as the Top Supply Chain of 2017: Unilever.
Key to Success
2.5 billion people across the globe use Unilever products on a daily basis. With more than 400 brands in their portfolio, the company has a strong foothold in 190 countries. Now, Unilever has managed to win the first spot 2 years in a row since 2016. Their vision revolves around sustainable growth and social purpose. So, to what can they credit their success? Unilever prioritizes supply chain operations and their long term goal of sustainability.
Accountability
Unilever plans to source 100% of the raw materials sustainably by 2020. This means that their suppliers have to be held liable in their practices. In other words. Unilever wants suppliers that support their values. There are several methods Unilever uses for accountability in their supply chain:
- Ensure that the suppliers are certified by 3rd parties
- Create internal policies for suppliers to adhere to
- Promote traceability across the value chain
-> Keep track of your transactions such as details of purchasing
Strategic partnerships
In order to achieve their goals, Unilever has strategic partnerships all across the world. This extends to their procurement as well as distribution channels. If you want to collaborate, it is important that each party has access to information relevant to them. In addition, having real-time data, common goals, and mutual benefits can go a long way in driving value from these partnerships.
Fast fulfillment
Speed is currency at Unilever. If you want 2.5 billion people to use your products, the first step is to ensure their availability. To achieve that, you need to start tracking inventory and the position of your products. Unilever has put great emphasis on this since 2001 when they implemented RFID technology. Benefits?
- The ability to forecast demand of their products
- Timely replenishment of stock as the need arrives.
In conclusion, Unilever’s supply chain is built be cost efficient as well as deliver excellent service to customers. Moreover, they have sustainability as their central focus. They are transforming their supply chain to fulfill that goal is an impressive feat. To sum it up, all the top three winners bring something unique to the table and deserve their spot. Is there room for improvement? Yes, but we can still learn a great deal from each.
And this concludes our Blog Post Series: Top 3 Supply Chains of 2017. Want to learn more? Check out other posts from our blog.
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