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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
ourwhole supply chain, from the field
tothe 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 flexible – and
created savings to reinvestin thebusiness.
The European Supply Chain
Responsiveness Programme (ESCRP)
isdriving 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
Europehas prompted a global roll-out
ofthe programme.
Superior service
‘On-shelf availability’ (OSA) measures
ourability to get the right product on
theright shelf at the right time – in 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.
Sowe 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
February2010 – after a planned
April launch was brought forward.
Three formulations, amounting
to650,000 tonnes of powder,
were produced by 21factories
tomake the deadline.
Shampoo opera makes every
yuan count – ClearChina
Reaching 448 million people every
time they tune in to a TV series
lasting 36 episodes is an advertiser’s
dream – and 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
ofconventionaladvertising.