Characteristics of Supply Chain Network - Unilever Example

This report discusses the characteristics of supply chain networks with the example of Unilever. It emphasizes the importance of maintaining trustworthy relationships among network members to achieve business goals. The report covers transactional aspects, strengths and qualitative nature of network relationships, and cultural characteristics of how members are linked and the roles played by individuals within the network.

Running head: CHARACTERISTICS OF SUPPLY CHAIN NETWORK
Characteristics of Supply Chain Network
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1CHARACTERISTICS OF SUPPLY CHAIN NETWORK
Abstract
This report has enlightened the knowledge regarding characteristics of supply chain networks
considering the example of Unilever as an organisation. It has discussed the significance of
maintaining a trustworthy relationship among network members of supply chains to
accomplish business goals. This report has discussed how the information is shared among
world class supply chain community of Unilever and described convenient culture for sharing
both knowledge and information. This written format will help to understand the desired role
of network members within a particular business model.

2CHARACTERISTICS OF SUPPLY CHAIN NETWORK
Table of Contents
Transactional - what is exchanged between network members.....................................3
Strengths and qualitative nature of the network relationships.......................................3
Cultural characteristics - how members are linked and the roles played by individuals
within the network......................................................................................................................4
References......................................................................................................................6

3CHARACTERISTICS OF SUPPLY CHAIN NETWORK
Transactional - what is exchanged between network members
Considering the example of Unilever, it can be said that the way to manage supply
chain network successfully is to establish and maintain long-term, strategy oriented
relationships with resource suppliers (Unilever.com, 2018). According to Ramanathan and
Gunasekaran (2014), the companies with large supply chain network tends to maintain
partnership to build a powerful network with purpose of serving the market in case of high
demand or even managing crisis together. Businesses perform well in market if the suppliers
maintain a seamless, uninterrupted supply of resources and logistics. Considering the fact
Unilever has opted for technological help across their supply chain network with purpose of
connecting all the domestic and foreign units together. Network members must address and
communicate the balance of demand and supply and to add value to the offered service.
Hence, network members maintain communication ensures benefit by providing exclusive
products and services; moreover, reduce risks by multiple process of inspection. Transaction
is a contextual word for addressing exchange of information among members of a certain
organisation regarding the database of business. This information can be related to any
business functions like financial, logistic oriented, or involving any level starting from
placing an order to shipment or its post-delivery issues.
Strengths and qualitative nature of the network relationships
Supply chain management of Unilever represents variety of implications connecting
to varied system of business. Business operations need an internal supply chain network
management, uninterrupted relationship, and understanding or strong communication among
them. With the help of a qualitative approach the demand, supply, stocks, shipped products,
invested resources all has been measured within the company. Therefore, as described in
Winter and Knemeyer (2013), the figures of revenue and profitability will show the

4CHARACTERISTICS OF SUPPLY CHAIN NETWORK
performance index. The rate of customer dissatisfaction is also dependant on health of such
relationship between network members. The strength of Unilever’s network relationship are
end-to-end commitment and trust (Unilever.com, 2018). Acknowledging nature of the
changing customer preferences qualitative data is prepared to response against bespoke needs
of the consumers. These factors are important in terms of integrating network members
towards shared goals, increase cooperation among them in time of market pressure. There is
hardly any motivational factors to boost their good relationship yet the shared goals and urge
of better performance collaboratively can be the ultimate motivator.
Cultural characteristics - how members are linked and the roles played by
individuals within the network
Unilever understands the significance of sustaining undisturbed linkage among
members to maintain business commitment. Sharing relevant information is one step towards
integrating members of suppliers’ network. Relevant information includes news of new
projects, company’s business direction, new strategies and market trends. Although, it
depends on the type of suppliers Unilever is communicating with, as not all the information
are meant for every kinds of network member. There are critical and non-critical suppliers
based on their participation in sharing risk responsibility.
Therefore, according to Winter and Knemeyer (2013), to maintain this kind of secured
authentic communication regarding exchange of information, it is important to minimize
technological barriers by improving IT infrastructure and installing new channels for
ensuring integration. Besides, traditional methods are helpful organising meetings in a
periodic gap or sending out notice. In case of globalised business scenario, all these process
can be conducted in virtual format. Instead of meeting, conducting a video conference or
adding members into social media groups will help to minimize both the cultural and

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geographical distances. In the addition, Unilever consistently try to elevate the quality of their
global supply chain by investing on human resource (Unilever.com, 2018). Several training
sessions are organised to support a workplace culture where employees are motivated,
commitment oriented and ready to handle all the future challenges. It will help to reduce
conflict and maintain business values in place.

6CHARACTERISTICS OF SUPPLY CHAIN NETWORK
References
Ramanathan, U. and Gunasekaran, A., 2014. Supply chain collaboration: Impact of success in
long-term partnerships. International Journal of Production Economics, 147, pp.252-259.
Winter, M. and Knemeyer, A.M., 2013. Exploring the integration of sustainability and supply
chain management: Current state and opportunities for future inquiry. International Journal
of Physical Distribution & Logistics Management, 43(1), pp.18-38.
Unilever.com (2018). Unilever global company website | Unilever Global. [online] Unilever
global company website. Available at: https://www.unilever.com/ [Accessed 8 Dec. 2018].