Unilever CSR

8/12/2019 Unilever CSR

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Extracting Value from Global Procurement:

an Executive View from Unilever

Dr. Uwe G SchulteSeptember 200



2!.0".200 Extracting Value from Global Procurement: an Executive View from Unilever 2

#ur mi$$ion

Unilever%$ mi$$ion i$ to a&&

Vitalit' to life. (e meet ever'&a'

nee&$ for nutrition) h'giene an&per$onal care with bran&$ that

help people feel goo&) loo* goo&

an& get more out of life.



2!.0".200 Extracting Value from Global Procurement: an Executive View from Unilever +

Unilever Global Scale

,he -merica$ /+.2bn ++1

2008 Turnover /!0.billion

Europe /2."bn +21

-$ia3-4E,35EE /!.bn +1

6!.000 Emplo'ee$ 260 manufacturing $ite$



2!.0".200 Extracting Value from Global Procurement: an Executive View from Unilever !

Skin

Other

HPCSavoury

Spreads

Dressings

Ice Cream

Home Care

Beverages

Hair

Deos

Unilever Profile

oods! "#$HPC! #%$



2!.0".200 Extracting Value from Global Procurement: an Executive View from Unilever

4aterial Spen& per 7egion

,he -merica$ +!1

Europe ++1

-$ia3-4E, ++1



2!.0".200 Extracting Value from Global Procurement: an Executive View from Unilever 8

(hat &oe$ Going Global -ctuall' 4ean9

Geographic 5overage− ;ow much i$ global9

Single point contact to Suppl' 4ar*et$

Scale leverage of compan' material$ $pen&


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Going Global: ,he <$$ue$=<

#perating >ramewor*

Global Suppl' 4anagement Director$ capabilitie$

Data ? <nformation management

5haracteri$tic$ of Suppl' @a$e

Supplier relation$hip management

Specification$ (orl& tren&$:

− >inancial 5ri$i$ A Supplier <n$olvencie$− Emergence of 5hina ? <n&ia− <ncrea$ing volatilit' of global mar*et$


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Going Global: ,he <$$ue$=<<

5ultural &ifference$

5ontractual framewor*

Exchange rate$

5ommunication$

,ravel

4anaging acro$$ time Bone$


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,ac*ling ,he <$$ue$: Data ? <nformation

4anagement

Data tran$parenc' ? con$i$tenc' i$ vital

Develop organi$ation culture towar&$ owner$hip ? u$e of a $ingleinformation $'$tem

7e&uction in c'cle time for information facilitate$ more effective&eci$ion ma*ing



Global Data Structure for <nformation

ISIS

Spend

&na'ysis

Technica' inancia'

Speci(icationSystem

)Simatic* + , P s

-ni'ever Data

.arehouse

Supp'ier



Global Direct Spen& Data

5overage: C 01

o. of Supplier$: "000

o. of 4aterial$: 60)000

-D. Coverage / -D. 0 P&

01

201

!01

801

"01

001

201

- 4 E , - $

i a

E u r o p

e

D o r t h -

m e r i c

a

a t i n

- m e r i

c a

- D . $ P & FGF2 200 H-$

of F2 200I

FGF2GF+ 200H-$ of F+ 200I



Global U$age of <nformation $'$tem

Chi'e! 1

e3ico! 4

-S&! #"0

Canada! #

S5eden! 6

7ether'ands! 60"

-nited ingdom! 628

Be'gium! 60

rance! #8

Spain! #

Portuga'! 6

9hana! 6

Bra:i'! 61%

&rgentina! #South &(rica! #"

S5it:er'and! 64

&ustra'ia! ;

9ermany! 28

Po'and! "

Ita'y! 66

Turkey! 6

China! 28

Pakistan! 4

India! #"

Sri <anka! 1

Bang'adesh! 6

Indonesia! 8

a'aysia! 1

Singapore! 1

Phi'ippines! 68

=apan! 8

>ietnam! 4

Thai'and! 16

orea! 2

Israe'! %

+gypt! 1


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Going Global: #rgani$ational Proce$$

9SD9SD

Ts

Ts

Ts

GS4D$ propo$e

global material

$trategie$

@u$ine$$ lea&er$ of

all region$ $ign=off

$trateg'

GS4D$ empowere&

to execute global ?

regional negotiation$ 9SD / 9'o?a' Supp'y anagement Director

Ts / Team em?ers

9SD

Ts

Ts

9SD


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Going Global: Some @enefit$

everage $cale with $upplier$

-voi& bi&&ing again$t one$elf

Deeper $uppl' mar*et *nowle&ge ? un&er$tan&ing Enabling global innovation an& $implification

4ore effective management of $uppl' con$traint$

Diver$e ? exciting role$ for Suppl' 4anager$



P'an

)Screening*

Check )&udit*

&ct

)Corrective

&ctions*

Do )&ssess*

@PDC&A

Site screening

Site

Se'(

&ssessments

,isk &ssess

Prioritise

Site

&udits

9ap &na'ysisCorrective

&ctions

H

H

Detai'

Concept

Going Global: 5orporate Social 7e$pon$ibilit'



Supp'iers BuyersThe Pro?'em

5ommon -pproach

?

S'$tem

Supp'iers Buyers

The So'ution

E$tabli$hing an <n&u$tr' >orum

+((iciency A information collecte& once an& $hare& $everal fol&

Credi?i'ity A u$e of Jin&u$tr' $tan&ar&$K ? metho&$.

Consistency A &eplo'ment of common metho&$

Best practices A &evelope& an& $hare&

airness A Governance involve$ all $ta*ehol&er$

The Bene(its




What its Objectives?

A forum sponsored by both CPG/FMCG industry associations ( AM in!urope and the GMA in the "#$ to deve%op and imp%ement common

methods of eva%uatin& Corporate #ocia% 'esponsibi%ity (C#'$ performance ithin the supp%y chain)

+ to improve the effectiveness and efficiency of the eva%uation processith the u%timate aim of raisin& C#' performance ithin the supp%y chainand reduce the burden of audit over%oad amon&st supp%iers) ,

nitiators-

P7#Gramme for 7ESpon$ible

Sourcing

What is it ?


http://www.cadburyschweppes.com/EN/

http://www.kraft.com/index.html



5ommon

4etho&:

Se&ex member$

agree to u$e a

common $elf=a$$e$$ment

Lue$tionnaire) to

be complete& b'

the $upplier.

5ommon

4etho&:

Se&ex member$

agree to a

common au&itformat) which can

be u$e& b' an

au&it agenc'

Step :

<nitial

Determination

<n&epen&ent

-ctivit':

Se&ex member$

in&ivi&uall'

&etermine which$upplier$ are

reLue$te& to

regi$ter

<n&epen&ent

-ctivit':

Se&ex member$

ma' have

&ifferent criteriato &etermine

corrective

improvement

plan$

Step 2:

Supplier Self

-$$e$$ment

Step !:

-u&it

Vali&ation

Step +:

7i$*

-$$e$$ment

Step :

5orrective

-ction

Plan$

<n&epen&ent

-ctivit':

Se&ex member$

ma' have &ifferent

criteria to&etermine which

$upplier$ will be

au&ite&

Evaluation 4etho& A (hat%$ 5ommon an& (hat%$ ot




Going Global: everage Scale Example

5reate incentive$ for *e' $upplier$ to &evelop globall'

4ar*et for a *e' material wa$n%t internationall' competitive in one region

Supplier influence& to e$tabli$h operation$ in the region

ew level of competitivene$$ create& which force& price$ &own+01 re&uction out of a $pen& of /200m



Going Global: U$ing Global Suppl' for @ac*=up

Effective bu$ine$$ re$pon$e to global material$ $hortage$

Single point Suppl' 4anagement interface to wor* with bu$ine$$ partner$ onri$* management

Global overview facilitate$ an un&er$tan&ing of all the ri$*

5entrali$e& &ataba$e enable$ proper $toc* control ? allocation

Securit' of pro&uct $uppl' in *e' mar*et$ i$ a$$ure&



Going Global: Securing Suppl' in a 5ri$i$

4anagement of countr'3regional economic cri$i$

-rgentina economic collap$e

Un=interrupte& &eliver' of raw ? pac*aging material$ from external $upplier$were a$$ure&

J(in = (inK $ituation wa$ create& for the -rgentinian bu$ine$$ an& theSupplier$



Going Global: Saving$

Since 200+ 'ear on 'ear $aving$ increa$e& from 21 to +1 p.a.

,o Mu&ge $uch a number) a clear &efinition i$ reLuire&:

arket ovementProect Savings

Buying Per(ormance

)Bottom <ine* Price

arket movement

F F2 F+ F! F

Price

Buying per(ormance

Proect SavingsB< Price

ProMect N 2=+ 1 a 'ear

)Price ?e(ore / a(ter proect imp'emented* 3 annua' vo'ume on'y capturing &ctivities (or their (irst 62 months



2!.0".200 Extracting Value from Global Procurement: an Executive View from Unilever 2+

Going Global: #utloo*

Oe' -rea$ to be a&&re$$e&

A 7i$* 4anagement HDi$ruption) 7eputation) 5a$h) Event$I

A

Supplier 4anagement H<nnovation) 7i$* ) oint <mprovementI A 5a$h 4anagement H<ntelligent Supplier >inancingI

A >oreca$ting HGive bu$ine$$ a $oli& forwar& viewI

A Su$tainabilit' H Paper) (ater) 5arbon >ootprintI

A ;e&ging 3 4anaging Volatilit'



&mericas

Overvie5

,han* 'ou

Unilever CSR

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