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Across our factory network, we’ve always had a strong focus on continuous improvement and operational excellence. This was formalised in 2013 when we adopted the World Class Manufacturing (WCM) framework, a benchmark for best practice.
But our business and the markets in which we operate are changing fast. So we’ve taken things to a whole new level with the roll-out of the Unilever Manufacturing System (UMS).
UMS is an evolution of WCM. Tailored specifically to Unilever, it was developed through the collaboration of supply chain and digital and technology expertise to transform the way our factories operate.
The digitally enabled system helps factory teams consistently drive improvement, integrate technology and optimise operations, while also supporting them to develop strategic plans that align with business priorities.
Manufacturing presents one of the biggest areas of opportunity for the business to unlock efficiencies and drive productivity further. From increasing production capacity and Overall Equipment Effectiveness (OEE) to reducing waste and improving energy efficiency, it’s where our factories can make a huge contribution.
Ultimately, it’s about fuelling business growth.
UMS is now live in 124 factories. That’s 2,100 manufacturing lines covering over 75% of our total production capacity.
On average, across all factories where it has been deployed, we’ve seen an improvement of 3% in OEE, 5% in labour productivity and 8% cost savings.
“Training over 23,000 factory colleagues in digital skills and ownership across all functions and capabilities has been essential in the roll-out,” says Renato Miatello, Chief Product Supply Officer, Home Care.
“UMS is key to building a lean, agile supply chain and it is an essential catalyst for landing our GAP 2030 strategy – delivering faster growth through driving productivity and simplicity. In short, it’s giving us a competitive edge.”
Here are four examples of how UMS is making an impact in our factories.
Our Indaiatuba site in Brazil is the largest laundry detergent powder factory in the world and one of Unilever’s eight World Economic Forum Lighthouse sites, recognised for applying advanced digital tech to work smarter, faster and more sustainably.
Producing brands such as Omo, Deja, Radiante, Surf and Comfort, it has had the highest OEE across Unilever for the last two years. This means it can increase production in response to spikes in demand without the need to add new lines.
It can also mitigate the impact on costs by better utilising assets if volumes change. In 2024, for instance, despite volumes fluctuating, Indaiatuba improved OEE by 85% and increased capacity by 20%, all while delivering almost €3 million in savings.
As Guseva Lyubov, Global ManEx Capabilities Manager, says: “UMS gives us a high degree of agility to respond to fluctuations in demand. And the savings it’s delivering are critical to remaining competitive as a production site.”
At our Knorr production site in Heilbronn Germany, food waste was 1.3% in 2023. Although a small percentage of total output, this equated to thousands of kilos, representing both a financial loss and an inefficient use of resources.
Waste was occurring, for example, when packs were underfilled or overfilled. Both resulted in the packs being rejected from the line.
However, thanks to rework machines, untouched food can now be hygienically removed and repackaged, while the original pack can be recycled.
UMS is also used to collect, analyse and visualise thousands of data points which are then digitalised onto a waste dashboard that the team can use to address any issues immediately.
Following the introduction of this system, waste was reduced by 55% in 2024 (compared with 2023), resulting in over €1.24 million net savings.
Located in Missouri, US, Sikeston is our largest Ice Cream factory by volume, producing some of our biggest ice cream brands.
Despite reducing their raw material and production material (RMPM) waste to the optimal benchmark of 2.8% in 2023, the team took significant steps to further reduce waste in 2024.
Their aim was to put in place processes that tracked and stopped waste at source. Machine efficiency was identified as one of the key areas that needed improvement.
Through structured governance and UMS tools, Sikeston reduced their RMPM waste by 32.5% in 2024 (compared to 2023), decreasing their total waste to a record 1.9%.
This significant milestone resulted in Sikeston contributing 28.5% of the total waste net impact (€3 million in savings) across all our manufacturing sites in 2024.
Our Beauty & Wellbeing and Personal Care factory in the Philippines produces market-leading haircare products from Sunsilk and Creamsilk, and deodorant lines from Rexona and Dove.
Using the UMS model to identify and prioritise areas that would yield the biggest wins in terms of efficiency and process improvements, the team was able to quickly ramp up performance from 51% OEE in 2023 to 66% by the end of 2024.
Thanks to the upskilling programme, the team has boosted productivity in alignment with benchmark standards and delivered annual savings of over €250,000.
Renato concludes: “Our manufacturing team is setting up to win and I’m confident we have the right formula. UMS not only strives for excellence in manufacturing but is also pragmatic to apply. It is a key driver of our growth ambition and we’re continuously updating the framework to further unlock efficiencies and maximise net productivity gains.”
Unilever Philippines has opened a production powerhouse in Cavite for its Beauty & Wellbeing and Personal Care businesses. The €80 million investment will see the factory’s production ramped up by 15%, increasing local jobs and serving accelerating demand in the region.
On International Day of Awareness of Food Loss and Waste, we check in with our factory frontline for the latest progress report on our fight against food waste.
Two more of our factories – in Tianjin, China and Indaiatuba, Brazil – have been awarded Lighthouse status by the World Economic Forum. This recognises how they are integrating the latest technologies to increase productivity and efficiency, and take care of the environment.
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