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Report of the Directors About Unilever
16 Unilever Annual Report and Accounts 2010
Winning through
continuous improvement
Continuous improvement means doing everything a little better,
every day. It is the key to sustainable growth. In 2010, we
concentrated on improving speed and agility in the supply chain,
while keeping costs competitive.
Fast and flexible – and
increasingly competitive
Being competitive on cost is vital. But our
customers’ needs are constantly changing
and our markets are fast-moving – so
wealso need to be fast and flexible along
ourwhole supply chain, from the field
tothe shelf.
In 2010, our philosophy of continuous
improvement was expressed through
simplifying the supply chain, superior
service and quality.
Simplifying the supply chain
We have consolidated our single global
supply strategy, creating a globally-led,
flatter structure that makes decision-
making faster and makes us more
responsive to customers’ needs. By
thinking differently about the supply chain,
we have become more flexibleand
created savings to reinvestin thebusiness.
The European Supply Chain
Responsiveness Programme (ESCRP)
isdriving the delivery of Unilever’s top
, products to customers faster on average
50% faster. To achieve this, we have
developed various solutions across the
value chain, for example, alternative
sourcing, collaboration with suppliers,
advanced technology and improved
production efficiency. The success in
Europehas prompted a global roll-out
ofthe programme.
Superior service
‘On-shelf availability’ (OSA) measures
ourability to get the right product on
theright shelf at the right timein other
words, ensuring shoppers can always find
our products in a store. However efficient
our supply chain, Unilever products
cannot sell if they are not on the shelf.
Sowe work with retailers to ensure that
our products are readily available when
Speeding up innovation
Wheel India
It took just 49 days… and left
the competition standing. Wheel
detergent powder was re-launched
across 25 states in India in
February2010after a planned
April launch was brought forward.
Three formulations, amounting
to650,000 tonnes of powder,
were produced by 21factories
tomake the deadline.
Shampoo opera makes every
yuan count – ClearChina
Reaching 448 million people every
time they tune in to a TV series
lasting 36 episodes is an advertiser’s
dreamand an example of our
constant search for better returns
on brand investment. Sponsoring
a popular Chinese drama won
huge exposure for Clear shampoo
– at less than 15% of the cost
ofconventionaladvertising.