AI The New Secret Ingredient in Unilever’s Customer Recipe
The consumer goods industry is undergoing a seismic shift. Gone are the days of siloed operations and guesswork in supply chain management. Today, AI is revolutionising how industry giants interact with retailers and consumers alike.
Real-time data sharing, predictive analytics and machine learning algorithms are transforming inventory management and demand forecasting. Sustainability has become a key driver, with companies leveraging AI to optimise logistics and reduce their carbon footprint. The focus has shifted from simply stocking shelves to creating seamless, integrated ecosystems that anticipate consumer needs before they arise. In today’s business world, the boundaries between supplier and retailer are blurring, replaced by collaborative partnerships powered by shared data and AI-driven insights.
Unilever, the global consumer goods giant, is at the forefront of this revolution, leveraging AI and digital solutions to transform its customer relationships and supply chain management.
How AI model is transforming Unilever’s operations
At the heart of Unilever’s innovation is an AI-powered customer connectivity model that's capable of performing over 13 billion computations per day, representing a fundamental shift in how the company approaches its entire supply chain, from forecasting to inventory management to product delivery.
“We've been on a path to not just ‘do’ digital but rather ‘be’ digital,” explains Juan Carlos Parada, Unilever's Global Head of Customer Operations.
The power of this approach has been demonstrated in a pilot project with Walmart Mexico. By integrating real-time sales data and forecasts between Unilever and Walmart, the AI system increased product availability to 98%, leading to a 12% growth in sales in less than a year, all while reducing inventory levels.
We've been on a path to not just ‘do’ digital but rather ‘be’ digital
Unilever’s AI model is breaking down traditional barriers between supply chains, creating a seamless ecosystem that synchronises data from the moment a consumer purchases a product all the way back to the source of materials. This level of integration and real-time data sharing is unprecedented in the industry, allowing for more accurate forecasting, optimised inventory levels, and more efficient logistics.
AI promoting sustainability and business growth
The environmental implications are significant too. By enabling more precise stock deliveries, the system reduces the number of trucks on the road, contributing to Unilever's sustainability goals. It's a prime example of how AI can drive both business growth and environmental responsibility simultaneously.
Unilever’s AI system is also reshaping the role of human workers in the supply chain. By automating much of the forecasting and planning process, the company estimates it could reduce human effort in these areas by 30%. Far from eliminating jobs, this shift is allowing employees to focus on more strategic, creative aspects of the business.
“We’re moving into an environment where meaningful portions of the work are getting done by machines, guided by people,” Parada notes. “It’s a mindset shift that is leading to some real breakthrough thinking.”
As Unilever rolls out this system to 30 key customers globally – representing over 15% of its global modern trade turnover – the company is setting a new standard for what it means to be a supplier in the 21st century. The company was recently recognised as Supplier #1 by Walmart, Mexico. The project was also a finalist for the Gartner Power of the Profession Supply Chain Awards 2024 in the ‘Customer or Patient Innovation of the Year’ category.
“Guiding every decision is our North Star of being Supplier #1 to our customers,” Pareda comments. “Our approach, which leverages technology, AI and strategic partnerships, has led to a breakthrough in customer connectivity, as we create full operational integration with customers as ‘One Supply Chain’.
“I continue to be incredibly proud of the leading-edge digital and AI models my team is delivering, and my hope is that we can be a thought leader in driving the next operational model for our industry.”
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