StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Supply chain management - Essay Example

Comments (0) Cite this document
Summary
It has more than 300 production sites which produces a diverse portfolio of brands. Interestingly, one of the success factors that have sold the company’s brand is its supply…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.1% of users find it useful
Supply chain management
Read TextPreview

Extract of sample "Supply chain management"

SUPPLY CHAIN MANAGEMENT By and Unilever is an international company with over 206,000 operating in more than 150 countries globally. It has more than 300 production sites which produces a diverse portfolio of brands. Interestingly, one of the success factors that have sold the company’s brand is its supply chain management (Unilever, 2015). Consequently, Unilever has been named one of the best firms having a sustainable supply chain across Europe that has demonstrated a continuous and competitive leadership and excellence. Interestingly, Unilever’s supply chain management has brought together a wide range of best practices with downstream and upstream partners, collaborative practices, innovations in demand forecasting, and integrated business planning, as well as research based operation techniques (Green, 2013).
Unilever’s Supply Chain Management Structure
Unilever’s supply chain management can be termed to be a collaborative one. The collaborative supply chain management is effective in the management activities ranging from supplier selection, environmental scanning, monitoring, and auditing and supplier development (partnerships) (Brammer et al. 2012). Both supply and demand repository stages depend on forecasting as the main source of data that determines by the products in demand and availability from the stores. The production stage adopts push technique that is based on aggregate customer demand forecasts to reduce the uncertainty of stock-outs, safety, and effective resource use and cost minimization (Brammer et al. 2012). Consequently, distribution relies on pull technique for all replenishments required by its distributors through the use of customer relationship management. On the other hand, inventory optimization techniques are adopted in the planning and scheduling to determine the quantity and the time frame for production (Nardone & Monahan, 2007).
Partnership in the SCM of Unilever and their role
Unilever believes that partnerships in its supply chain management are essential practices because it is a powerful technique to deliver customer experience and value proposition (Unilever, 2012). The main partners include Barry Callebult a main partner in cocoa, Givaudan, The Dow Chemical Company, Metsa Board Corporation, WRI, LEAF, ALPLA, CCL Label, SAP & Accenture and Linfox Logistics. These partners help in business development, world class business support, capacity development, sustainability and business innovation in Unilever (Unilever, 2012). Unilever also aimed to increase its transparency of essential commodity supply chains that is aimed at helping terminate tropica deforestation through its partnership with World Resource Institute (Press Release, 2014). It, therefore, has a benefit to Unilever because it reduces risks to supply chain disruption.
These partners help Unilever in the distribution process and creating new customer networks (Unilever, 2015). For instance, Unilever has partnered with LEAF to find new networks with farmers across UK who are sustainably growing their crops. Such an effort is aimed at sourcing its agricultural materials for its products sustainably. This explains why Unilever was interested in sourcing sustainable rapeseed oil. Additionally, the partnership Also aimed at educating Unilever’s consumers of the natural aspect of its products (Knowels, 2014). Knowels (2014) explained that Unilever has also been working with Archer Daniels Midland firm to source its agricultural ingredients for its products.
The partners help reducing stock risks, management of control costs, warehousing costs, continuous flow of products to ensure improved customer experience. It, therefore, indicates that the main goal of Unilever’s supplier partnerships exclusively entails consistent value delivery based on time, on-time delivery services, products, quality and returns management (Unilever, 2012). Interestingly, Unilever launched the “Partner to Win Initiative” that focuses on positioning its supply chain to a global competitive scale via a creating a stronger Unilever brand name, generating new sources of funds, managing Unilever’s risks and cutting production and supply costs. This program has included Solidaridad (NGO) as its supply partner to create a socially, ecologically, profitable and a sound supply chain regarding its agricultural products (Degun, 2014)
Logistics of Unilever
Unilever’s logistics network cover more than 1.5 billion Km per year to enhance its regional and global distribution of its diverse products and operational efficiency. Transport largely depend on fossil oil as the energy source where the largely depend mode of transport is through roads, rail, water and air. The firm has its own logistics network where it uses its vehicles and warehouses, as well as, stores to distribute its products (Hutahaean, 2013). For the overseas countries where Unilever has not established production sites it uses DHL and Kuehne+Nagel as the third party logistics provider to deliver and compete with the existing brands in those regions (Unilever Inc. 2015).
The firm uses an approach that aims in emitting the lowest levels of carbon by-products during its transport and warehousing activities. Unilever has adopted its own Ultra-Logistic platform that manages its product movement from production sites to the customer destinations (Unilever, 2015). The platform concentrates on packaging, handling and movement of the raw products, as well as, finished goods. Lastly, Kuehne University and Unilever jointly, conducts logistics research to enhance the firm’s service delivery globally (Gilmore, 2014).
References List
Brammer, S., Stefan, H., Millington, A. & NBS (2012). Managing sustainable global supply chains. Network for Business Sustainability. Retrieved from http://nbs.net/wp-content/uploads/NBS-Executive-Report-Supply-Chains.pdf
Erica, D. Elisha, G., Shayna, H & Chris, M. (2010). Unilever and its Supply Chain: Embracing Radical Transparency to Implement Sustainability. S-Lab Final Report. Retrieved from https://mitsloan.mit.edu/actionlearning/media/documents/s-lab- projects/Unilever-report.pdf
Degun G. (2014). Unilever agrees partnerships with NGO to improve livelihoods in supply chain. Supply Management: The Procurement and Supply Website. Retrieved from http://www.supplymanagement.com/news/2014/unilever-agrees-partnership-with- ngo-to-improve-livelihoods-in-supply-chain
Green, W. (2013). Unilever named best supply chain in Europe. Supply Management: The Procurement and Supply Website. Retrieved from http://www.supplymanagement.com/news/2013/unilever-named-best-supply-chain-in- europe
Gilmore, D. (2014). Insights from Unilever’s Perfect Logistics Netwok Exercise. Supply Chain Digest. Retrieved from http://www.scdigest.com/ASSETS/FIRSTTHOUGHTS/14-07-25.php?cid=8321
Hutahaean, C. 2013. Unilever’s Supply Chain Management Practices. http://www.academia.edu/7192763/Supply_Chain_Management_Practices_in_PT._U nilever_Indonesia
Knowels, V. (2014). So Flora is opening up its supply chain. But why is it doing that now? 2degrees Community. Retrieved from https://www.2degreesnetwork.com/groups/2degrees-community/resources/so-flora- opening-up-its-supply-chain-but-why-it-doing-that-now/
Lora, C & Abby, M. (2013). What Drives Supply Chain Excellence? A Look Back and a Look Forward. Supply Chain Insights LLC. Retrieved from http://supplychaininsights.com/wpcontent/uploads/2013/02/What_Drives_Supply_Ch ain_Excellence-A_Look_Back_and_a_Look_Forward-15FEB2013.pdf
Mentzer, J. T. (2001). Supply chain management. Thousand Oaks, Calif, Sage Publications.
Nardone, R., & Monahan, S. (2007). How Unilever Aligned Its Supply Chain and Business Strategies. SUPPLY CHAIN MANAGEMENT REVIEW. 11, 44-51.
Press Release. (2014). Unilever and WRI Announce Partnership to Increase Transparency of Key Commodity Supply Chains to Help End Tropical Deforestation. World Resource Institute. Retrieved from http://www.wri.org/news/2014/09/release-unilever-and-wri- announce-partnership-increase-transparency-key-commodity
Unilever Inc. (2015). “Transport and Distribution. Unilever. Retrieved from http://www.unilever.com/sustainable-living-2014/reducing-environmental- impact/greenhouse-gases/transport-and-distribution/
Unilever. 2012. Long term supplier partnerships key to Unilever Sustainable growth strategy. Unilever. Retrieved from http://www.unilever.com/mediacentre/pressreleases/2012/longtermsupplierpartnership skey.aspx Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Supply chain management Essay Example | Topics and Well Written Essays - 500 words - 10”, n.d.)
Retrieved from https://studentshare.org/professional/1686632-supply-chain-management
(Supply Chain Management Essay Example | Topics and Well Written Essays - 500 Words - 10)
https://studentshare.org/professional/1686632-supply-chain-management.
“Supply Chain Management Essay Example | Topics and Well Written Essays - 500 Words - 10”, n.d. https://studentshare.org/professional/1686632-supply-chain-management.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Supply chain management

Supply Chain Management: DELL

.... The basic elements of the model are the direct sales model called the direct model, and the build-to-order strategy (Manataki, 2007). B. An overview of the organization’s supply chain management efforts, including the organizational issues involved with the supply chain such as the organizational structure, the placement of supply chain management within that structure, and supply management’s relationship with other departments in the organization. As far as the organization’s supply chain management efforts and its issues are concerned, Dell experienced three basic variables to solve. Where at one end, Dell has continuously refined its portfolio with the direct model, providing two billion online customer visits, the supply chain design...
9 Pages(2250 words)Term Paper

Purchasing & Supply Chain Management

...the competitive edge in the industry with respect to the group’s purchasing and supply chain management. Body Purchasing and supply chain management entails the performance and coordination of numerous activities that takes place both inside and outside an organisation. Research reveals that besides the supply chain that exists within an organisation, there has to be at least one supply chain with another organization. Further, studies reveal that “the structure of activities within and between companies is a critical cornerstone of creating unique and superior...
6 Pages(1500 words)Essay

Supply Chain Management

...of original consumers and the whole process is regarded as the supply chain operations. Since this product largely employs water resources for the production, it adversely affects the environment. This negative feature in turn notably impinges on Pepsi’s supply chain management as it is a major societal issue. Similarly, large number of links in supply chain makes the product expensive to customers. For instance, Pepsi Max is the newly introduced PepsiCo’s product in India which would be available at 15 and25 INR. It is essential to note that India has abundant water resources and the company employs it largely for the...
2 Pages(500 words)Essay

Supply chain management

... has been eliminated and replaced by the virtual movement of data over electronic medium (Villena et al., 2009, p. 640). Inventory (raw-material in this discussion) is one of the major influencers and consumers of time and cost in a business process e.g. the delivery time, storage cost, time to expire, etc. When it comes to supply chain management, management of raw material is attributed to its additional costs towards storage, leakage, theft, and other costs pertinent to storage of raw material. Expiry date, if applicable, is also a cause of concern for the supply chain department. Application of e-business can easily be couple with cost-and-time-reducing-mechanisms for inventory such as JIT (Just In Time) mechanism whereby inventory...
6 Pages(1500 words)Essay

Supply Chain Management

...for different business operations. Different firms like airlines, hospitality, oil and gas, medical, defense and many other logistics firms are deeply interested in the implementation of a robust and automated supply chain management system. SCM involves acquisition of raw materials, the transformation of raw materials into final products. SCM adds value in the business and involves distribution and promotion of final products in the markets. SCM plays a vital role in the exchange of information among business partners like vendors, suppliers, retailers, distributors etc. The main purpose of supply chain management system is to enhance...
4 Pages(1000 words)Essay

Supply chain management

Transformation. Another key strategy is that Zara keeps tight control and flexibility over every link in its supply chain, keeping the bulk of manufacturing in-house rather than outsourcing them. While other companies begin with the designers who plan a year in advance, Zara store managers monitor what is selling daily and track current sales trends. They feed information on what customers need but can’t find to designers who create the designs and have them manufactured instantly. Throughout its process, the ‘fast fashion’ concept enables designs to reach production in two weeks, and has been imitated by Forever 21, Mango, and Topshop (Hansen, 2012). Output. As for distribution, Zara does this exclusively through their own store...
9 Pages(2250 words)Essay

Supply Chain Management

...is mainly executed to development of organizations thus prompting business enterprises to commence strategic associations with other prevailing organizations (Lamberti et al, pp36-42). Common basis of supply chain management undertaken by organizations mainly entail the demand-supply chain. Therefore, there is no competition amongst the suppliers, partakers within the chain, sub-contract merchants, in-house merchandise processes, transportation, circulation, warehouses and the final consumer since they undertake mutually exclusive tasks. The paper mainly explore the necessity for SCM , arrangement of the SCM models, Issues that pertains...
5 Pages(1250 words)Assignment

Wedgwoods Supply Chain Management

...Topic: Wedgwood's Supply Chain Management The company: Luxury ceramics are identified with Wedgwood Company, with a history of about 250 years, the company is facing the problems in operation management that is a flexible and responsive customer service. Improving the basic tasks of a company like finding raw components required for product or service, manufacture of the products or service and delivery to the customers is the arts and science of supply chain management. The five basic components of supply chain management include, (Christopher Koch, 2002) (Carlo.D.Smith pp155-178) (William C Copacino, 1997, pp.81-90) (Robert A. Rudzki et.al) Planning: A strategy is to be developed for the cost-effective utilization of resources required...
8 Pages(2000 words)Essay

Supply chain management definition

...1.0 Introduction Supply chain management can be defined as the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole (Braithwaite 2002). The supply chain also exists for the customer, as the customer is the one that adds the value to this process. Proper control and management of the supply chain, particularly for organisations operating in the service industry is important as it is responsible for the improved customer experience, reduced inventories, lower operating costs and improved...
10 Pages(2500 words)Case Study

Supply Chain Management

SBX Construction Company Investment analysis – Horizontal Boring Machine: EATCF Stream:   Year Year 2 Year 3 Year 4 Year 5 NOI 20000 20000 20000 20000
20000
-Depr. Exp.
-10000
-10000
-10000
-10000
-10000
Net Income (BT)
10000
10000
10000
10000
10000
-Inc. Tax
-4000
-4000
-4000
-4000
-4000
 
 
 
 
 
 
=Net Income (AT)
6000
6000
6000
6000
6000
 
 
 
 
 
 
Adjusting Accrual to Reflect Cash Flow
-Cap. Impr. Exp.s
0
0
0
0
0
+ Depr. Exp.
10000
10000
10000
10000
10000
+ Tax Claim
2000
2000
2000
2000
2000
EATCF
$18000
$18000
$18000
$18000
$18000
NPV @...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Supply chain management for FREE!

Contact Us