Unilever 2013 Annual Report Download - page 23

We cannot be complacent – Unlever
Brazl experenced ts frst publc
product recall n 85 years, when a
malfuncton lastng 80 seconds at our
AdeS soy juice drink plant contaminated
96 units, resulting in €60 million of lost
sales. But we have learnt from this
experience, improving our quality
processes with revised maintenance and
verification procedures, new practices for
manufacturing and maintenance staff, and
improved links with customer care lines.
SETTIN NEW STANDARDS
FOR SERVIE
While we have more to do, our efforts so
far are being recognised as leading the
industry: in 2013 we were voted the
number one fast-moving consumer goods
(FM) supply chan n the artner Top 25
S rankng, and number one overall for
companes based n Europe
INVESTIN IN MANUFATURIN
To meet our growth targets, we have
nvested n addtonal manufacturng
capacty In 2013, we nvested 16 bllon,
ncludng n sx new factores, wth fve
addtonal factores planned n 2014
Thesefactores nclude eco-effcency
technologes such as buldng orentaton
and desgn to mnmse energy use, heat
recovery, low-energy lghtng, energy-
effcent motors and ranwater harvestng
and re-use for factores n water-stressed
locatons
By the end of 2013, three quarters of
our factory network had acheved zero
non-hazardous waste dsposal to landfll
A new 42 mllon Home are factory
n Tann, hna, was the frst Unlever
greenfeld ste to be awarded old LEED
certfcaton for sustanable desgn
ncludng the use of renewable energy
andenergy and water effcences
amongst other desgn crtera
We are also extendng our ‘World lass
Manufacturng’ (WM) programme, whch
sets a global benchmark for the reducton
of waste and cost By 2014, almost half our
total producton costs wll be from stes n
the WM programme
SIMPLIFYIN FOR SPEED AND AILITY
Durng 2013 we managed a seres of rapd
product expansons – for example, further
rollng out TRESemmé nto ten new
markets makng TRESemmé avalable n
a total of more than 40 countres We also
rolled out our Dove Har Expert Repar
range to more than 50 countres snce ts
launch n February 2013 and Axe Apollo
to 60 countres wthn three months
However, we recognse that we need stll
more speed n our processes, decson-
makng, and executon We have therefore
begun Proect Half for growth, desgned
to smplfy our processes, ncrease our
aglty, and create savngs – half the tme,
half the spend, half the hassle One of
the ten key areas we wll smplfy s our
number of stock-keepng unts (SKUs)
We have started a programme selectvely
to remove SKUs wth low turnover
We beleve that ths smplfcaton wll
sgnfcantly reduce the number of
formulatons, materals and non-strategc
supplers that we use, drvng costs down
We ntend to create space to delver growth
from nnovaton and enhance our ablty to
act quckly We wll also use the effcency
savngs to nvest n our brands
LEVERAIN ENTIRE
VALUE HAIN
We have more than 100,000 supplers and
we delver to more than 8 mllon stores
By workng wth these and other partners
we can reach more consumers, develop
new products, buld new capacty, ncrease
margns, andnurture sustanablty
We’re also contnuously mprovng our
own operatons to get the benefts of our
unquescale and reach
PARTNERIN TO WIN
We have now sgned 90 ont busness
development plans wth our strategc
supplers In June 2013, more than
350 representatves from our strategc
supplers attended our Partner To Wn
suppler summt n Sngapore The
summt hghlghted the advantages of
partnershps n nnovaton, sustanablty,
and capacty buldng
MANUFATURIN KPIs
CO2 from energy
per tonne of production
98.85KG+
2012: 104.23kg
Water per tonne
of production
2.12m3+
2012: 2.27m3
Total waste (sent for disposal)
per tonne of production
2.72kg+
2012: 3.94kg
+ PwC assured. In 2013 we adjusted our
reporting period from 1 January – 31
December to 1 October – 30 September. We
have recalculated the prior 12 months to
enable a like-for-like comparison (this has
not been assured by PwC in 2013). For details
and the basis of preparation see: www.
unilever.com/ara2013/downloads.
Unlever Annual Report and Accounts 2013Strategc report20
OUR OPERATIONS
ONTINUED