Logistics and Supply Chain Management: Unilever's Strategic Analysis

This report provides a comprehensive analysis of logistics and supply chain management within the context of Unilever, a globally recognized brand. It explores key supply chain concepts, principles, and processes, emphasizing the importance of planning, sourcing, manufacturing, and delivery. ...Read More

Logistics and Supply
Chain Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
a) Exploring the key supply chain concepts, principles, and processes in an organisational
context.........................................................................................................................................3
b) Critically analysing how logistics and supply chain strategy can contribute to the
competitiveness of an organisation.............................................................................................6
c) Critically evaluating the issues associated with the development of a supply chain strategy,
.....................................................................................................................................................7
(D) Evaluating the interrelationships between supply chain and other areas of an organisation.
...................................................................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES:.............................................................................................................................14
Books and Journals...................................................................................................................14

INTRODUCTION
Supply chain management is a process managing the movement of raw materials and
inventories (Behl and Dutta, 2019). Right management of inventories helps the organisation to
supply the goods and products in an systematic manner. Unilever is renowned brand which
provides quality goods and services to the customers in the market. The company is providing
everyday hygiene and nutrition products to the consumers. Through, this Unilever main purpose
is make the life of the customers sustainable. The report aims to analyse about analysing
different supply chain concepts and strategies. On the other hand, in this report there will be brief
discussion about logistics and supply chain strategies which help the company to improve its
overall performance in the new era of globalisation. Along with that, there will be critical
evaluation of the issues with the development of supply chain strategy. For further instance,
evaluating the relationships between supply chain and other areas of the organisation.
MAIN BODY
a) Exploring the key supply chain concepts, principles, and processes in an organisational
context.
Supply chain can be described as an network between the suppliers and manufactures.
The organisation distribute various products and services in the market with an systematic supply
chain management. It is a process which helps the organisation to mange the inventories
effectively. Supply chain management has various key elements which are described below:
 Planning – This is the most important source which helps the organisation to plan their
supply chain management system. The organisation has to manage the supply chain with
in a systematic manner. Right planning of resources could help the company to carry out
the operations more effectively in the market. Unilever has wide range of products in the
market. The management is experienced in managing the supply chain with effective
planning (Chauhan and Singh, 2019). This helps the company to fulfil the demand of
customers towards their products and services. Unilever is using technological factors to
manage their supply chain management.
 Sourcing the Raw Materials – This includes the raw materials approvals and making
the decision of purchasing the goods from different manufacturers. The organisation has
to manage the sourcing of raw materials from different manufactures. On the other

hand ,benefits of supplying the change management system the company has to provide
the best finished goods and services in the market. Unilever has wide chain of network
they purchase the raw materials from different manufacturers. This helps the organisation
to maintain a adequate supply of their finished products in the market.
 Manufacturing – This is the vital factor which is included in the supply chain
management system (Khan and Yu, 2019). The organisation facilitates the manufacturing
they provides the finished goods and services in the market. Unilever provides the quality
goods and products to various consumers. The main focus of the company is to ensure the
adequate supply of goods and services with chain management system.
 Delivery – After the completion of all the stages the organisation has to optimize their
customer driven logistics strategy. The organisation has to provide essential warehousing
and warehousing for their products. Unilever is mainly profitable in the market with their
effective services. The organisation warehouse its products in systematic way they store
their finished goods which helps them to supply the products to the consumers in an
effective way.
Principles of Supply chain:
 Adapt Supply chain to customer needs – Various organisation nowadays understand
the needs of the consumers in the market. Basically, the organisation has segmented their
audience to provide the goods and services. This is an important principle of supply chain
management system. The companies now use the technological methods to target the
right audience in the market. Unilever prepares a systematic channel to fulfil the demands
of consumers. The organisation has a positive impact on the consumers with their
products in the market.
 Customizing the Logistics Network – After the process of segmentation the
organisation has to establish a systematic chain for the supply of their products and
services (Wang, 2018). Unilever has the experienced Supply chain manager which
regulates this process and help the organisation to successfully deliver the products to the
consumers in the market. To customize the logistics network the company had to improve
their working style of the management in the organisation.
Important benefits of managing the supply chain management system:

 Better collaboration with the suppliers – This is the main benefit of managing the
supply chain. The organisation has to become flexible to purchase the raw materials from
the suppliers (Mosteanu and et.al., 2020). Unilever has the wide chain of networks with
different suppliers. The company understand the cost constraints. On the other hand, this
gives them a benefit to gain a competitive edge in the market. The effective supply chain
management system helps them to provide the adequate supply of their goods to the
consumers.
 More structured and agile business – Good supply chain management system helps the
organisation to make their operations more agile and structured in different ways.
Unilever use different methods and strategies to successfully provide products in the
market. This structured system helps the company to provide the goods and services to
the consumers in an effective manner. Effective supply chain management helps the
business to carry out their operations smoothly in the workplace.
Failures of the supply chain management system:
There are basically some disadvantages of the supply chain which are mentioned below:
 Offshoring – It is the practice of outsourcing different business operations from different
regions. The organisation supply their raw materials from outside countries which creates
a risk. Offshoring of products and services could increase the risk of failures for the
company (Van Goor, van Amstel and van Amstel, 2019). This process could entirely
affect the supply chain in an negative way. Unilever could face different problems
because their raw materials are shipped from outside regions. Various change in policies
could affect the shipping industry. On the other hand, due to this Unilever might face
different problems. Th organisation has to manage the supply chain effectively to
continue their operations effectively.
 Unexpected Events – Natural disasters and calamities may hamper the organisation
structure and supply chain of different goods and products The raw materials has to cross
different borders to finally reach out to the company. The potential of confusion may
increase which affect the company. Unilever organisation is established in different
regions they had to maintain the effective supply chain management system. The
company could use different ways to minimize the risks with the help of different
strategies and methods.

b) Critically analysing how logistics and supply chain strategy can contribute to the
competitiveness of an organisation.
Logistics refers to the movement which is happened between the supplier to produce the
necessary goods. Logistics is an overall process which help the organisation to manage the
resources (Langley and et.al., 2020). For example storing of the raw material, transporting
products etc. Poor management of logistics can impact the business in an negative way. In this
new era most of the organisation used logistics to manage different operations in the workplace.
There is an interrelation between the logistics and supply chain. Nowadays, business use the
logistics process to mange the supply of raw and material and move them along with the supply
chain. There are different types of logistics which could help the company to improve their
overall performance in the market. On the other hand, a supply chain strategy is an network
which helps the organisation to manage a formal approach between the suppliers in the market.
Critically analysing how the logistics and supply chain strategy helps the organisation to improve
its effectiveness in this new era of globalisation. There are different points which are
described below:
 Reaching to new customers in new market around the world – Globalisation helps the
organisation to enhance its communication. Company can establish the connection
between the vendors and the customers. With the help of an effective supply chain
strategy the organisation can manage to deliver the quality products and services to
different customers in the market. Unilever improve its overall performance with the help
of right management of supply chain and logistics. In this new era the company has
innovate new ideas to reach different customers in the market.
 Expanding sourcing Opportunities – Developing new ideas help the company to
outsource different opportunities in the market. Supply chain strategy implements new
ideas and methods which helps the company to increase their production. The
organisation can import their raw materials and products from different regions to
generate more revenues in the market. Unilever right practices helps them to achieve the
attain goals and objectives in the market. The company purchase raw materials from
different manufactures which help them provide the goods and services at low prices in
the market. This gives the company an competitive advantage over its competitors in the
market.

 Offer larger selection goods and services to the consumers – The organisation can
improve their performance if they do right management of the supply chain. On the other
hand, the company has to improve their logistics to manage the raw materials. Unilever
use the right management of logistics and improve their supply chain strategy to generate
more revenues in the market (Richards and Grinsted, 2020). The company could grab
different global opportunities to increase the range of products and services. With the
help of right supply management the company could offer different selected products in
the market.
 Growing and expanding the growth of the business – Right supply chain strategy and
logistics could help the company to grow and expand their business in an effective
manner. Unilever capitalise on different opportunities which helps the company to grow
at an effective pace in the market. Their business is expanding at an exponential rate
which helps them to attain the goals and objectives in an systematic manner. The
organisation has the supply chain manager which carry out all the necessary operations
effectively. Unilever is growing at an exponential rate in different regions with the right
strategies and methods.
 Increasing profits – Profits helps the business to survive in the market. On the other
hand, the profits can be increased by supplying right products to the consumers. Logistics
also help the organisation to manage the business operations storing and transportation of
the products systematically (Ailawadi and SINGH, 2021). Unilever increase their profits
with new strategies and methods in the workplace. There are different areas in which the
organisation can improve. For example management of the supply chain, delivering the
goods directly to the customers. Profit increment also helps the company to have an
sustainable growth in the market.
c) Critically evaluating the issues associated with the development of a supply chain
strategy,
Supply chain strategy helps the organisation to gain a competitive edge in the market
(Sweeney and Waters, 2021). On the other hand, the companies needs to manage the supply
chain management effectively to become more profitable in the market. There are different
issues with the development of supply chain strategy are described below:

 Globalization – This is the main factor which most of the organisations fails to adapt.
This factors can impact the companies both in negative and positive ways. In supply
chain management the organisation tends to reduce their costs to generate more profits in
the market. This is a key issue of the supply chain strategy which impact the organisation
(Saghiri and et.al., 2018). Various companies import their raw materials from outside
regions. Outsourcing could be beneficial for different companies in the market. They may
face several disadvantages depending upon the critical situations. On the other hand,
Unilever has the advantage because their raw materials are purchased from different
manufacturers. This helps them to gain a competitive edge in the market. They provide
quality products to the consumers at low prices in the market. There is a main problem
with the organisation. Their products does not have proper segmentation the target
audience is not clear. This creates a clear disadvantage for them in the market.
 Fast Changing markets – The market is changing significantly at a very fast pace. Most
of the companies has to improve practices in order to sustain in the market. The main
focus of the organisation is to adapt with the new technologies to generate more revenues
in the market. The supply chain strategy needs to effective to cop up with the changing
environment (Sperindeo, 2021). Their are various ways to improve the supply chain
management performance. For example, transporting the goods, purchase of raw
materials needs to be accurate to improve the overall performance. In accordance to
Unilever the company is innovating new strategies to enhance the reach of their products
in the market. To improve the performance the company needs to make is supply chain
more flexible. This will help them to capture a huge share of customers in the market. On
the other hand, Unilever can redesign their supply chain to carry out the operations more
effectively in the workplace. Their supply chain management must be agile and
structured. This will help them to attain the inherent goals and objectives in the market.
 Quality and Compliance – This is the major issue while associating with the
development of supply chain strategy. The raw materials which the company imports
must have an excellent quality (Zinn, Goldsby, and Cooper, 2018). This could help the
organisation to make the finished goods more refined. The company could generate more
revenues with the right approach and strategies. Supply chain management plays an
important role in improving the quality of the products and services. For example the

management includes various factors like manufacturing, packaging, transportation etc.
There are different which can affect the quality of the products. On the other hand,
warehousing of the goods must be excellent. This will help the company to provide
quality goods to the consumers in the market. Unilever is using the right strategy to check
the quality of their products. Their goods provides maximum satisfactions to the
consumers in the market. They check all the factors which helps the assure that their
products provides never imagining experience to the consumers in the market.
Identifying solutions on a good based models:
Supply chain models involves all the logistics of producing and selling the products in an
effective manner. The management needs to be perfect to manage the entire process effectively.
There are different advantages of supply chain models. It helps the company to target the right
audience and it improves the reach of the company in the market. On the other hand, these
models could help the organisation to improve their overall performance and solve many
problems which are associated with the supply chain strategies. Various models are mentioned
below:
 The continuous model – In this model the company could built a supply chain which are
specially useful in supplying the products and services in the market. The model ensures
that there is steady supply of goods from the company to the market. This model can
solve different problems which arises while supplying the goods in the market. Unilever
use this model to improve their performance and the inherent supply of goods and
products in the market. For example, the Unilever provides various products in the
market all of their products comes with excellent quality. This model could effectively
solve the problem of quality and compliance which is an major issue.
 The efficient model – This model helps the business which are highly competitive in the
market. With the help of efficient model the organisation can compete with different
competitors in the market. This model ensures the proper inventory management which
helps the company to carry out the operations smoothly in the workplace (Jain, Jain, and
Metri, 2018). The prioritization of right resources is also important to achieve the
maximum productivity. This model can solve the problems related to fast changing
markets. The companies generally use this to create a balance between the productivity
and enhance the quality of products in the market. Unilever is using this model to comply

with the changing dynamic trends. The organisation is offering new products which are
customer changing preferences. They are using the strategy to reduce the costs of the
products which automatically makes them popular in the market. On the other hand, the
company is generating more revenues with this strategy and growing at an exponential
rate.
 The Flexible model – This model helps the business to grow at its very peak to meet the
demand of the consumers. The main motive of this model is to help the company to
generate more revenues in the market. There are different components in this model first
is segmentation of consumers, accurate algorithms to perform better in the market and
flexible planning (Kot, Goldbach and Ślusarczyk, 2018). This three stage could help the
organisation to become more effective in the market. On the other hand, the model could
help the company to manage their supply chain management effectively. Unilever, use
this strategy to become more successful in the market. They cop up with the changes that
are initialising in the market. There are different aspects which Unilever has captured to
become more profitable in the market. Globalisation could be solve through this model
the company can inhrenet new changes in their working style. This will help them to
attain the inherent goals and objectives effectively in the market.
(D) Evaluating the interrelationships between supply chain and other areas of an
organisation.
Supply chain management is the key concept in the business that ensures the flow of
goods and services and mainly includes the transformation form the raw material into the final
goods and services. This management of the company should be effective in order to decrease
the expenses in the business and also helps the business to deliver the goods and services in a
less time. Companies makes effective strategy to create a network through which they can sell
the products and services to the ultimate consumer in the market (Waters, 2019). This a very
wide concept that includes various factors like planning, sourcing, manufacturing, delivery &
logistics and returning. Effective supply chain management ensures that the company could
achieve the goals and objectives in the market. These are the components that helps the business
to deliver the products and services even in the remote areas.
Importance of supply chain

This is very important part of the business that directly contributes in the success of the
business. There are various importance of the supply chain management that are discussed
below:
 Effective supply chain management helps the business to increase the customer service as
they get the products and the services in the given time. This also facilitates the
companies to build a brand image in the eyes of the customers by providing them the
right products.
 This type of management helps the small businesses and the retailers in delivering the
products and services to the ultimate consumer in the market (Pagano and Liotine, 2019).
If the business uses effective supply network then it will save the cost in holding the
goods and services in the warehouses.
 The managers of the supply chain management helps the company to decrease the cost of
fixed assets. They focus to eliminate the cost of the warehouses, plants and the vehicles
that are used in transportation.
Relation of supply chain with the sales department
Sales department and the supply chain management are interlinked with the each other
that contributes to the success of an organisation. Sales department of the organisation is directly
dependent upon the supply management as through this they can deliver the products and the
services into the market. Effective supply chain includes the wholesalers as well as the retailers,
so it becomes very easy for the sales department to sale the products and services even in the
remote areas by the helps of the retailers. This helps to increase the sales of a business (Kain and
Verma, 2018). Unilever always ensures that there products and services should reach to each and
every consumer in the market so therefore they uses the effective supply chain. This enables
them to deliver the products in the market with the helps of the distributors and the retailers.
Relation of supply chain with the purchase department
Purchase department has also a direct relation with the supply chain management that
helps in the growth and increasing the sales of the business. If there will be the proper network
for buying the raw materials for the company, it will helps them to deliver the products and
services in the market. Supply network include various manufacturers and suppliers that deliver
the raw materials and unfurnished goods into the business. This helps the business to serves the
final goods and services into the market in a effective way. Maintaining proper network of

supply of goods and services helps the business in gaining more success in the future. Unilever
purchase department focuses on purchase the raw material and the unfurnished goods form the
various manufacturers and the suppliers in the market which does not delay the production
process in the company (Copacino, 2019). Purchase department of Unilever uses effective
network to maintain the raw materials and unfurnished goods that can meet the requirement in
the production of goods and services.
Relation of supply chain with the marketing department
Supply chain management plays an important role in the marketing of a product and
services in the market. As the marketing department have the responsibilities to advertise the
products and services into the market. If the demand is increases in the market related to the
particular products and services then the effective supply chain management helps the business
to meet the requirement of the customers in the market. As they will help them to deliver the
products and services from the manufacturers to the ultimate consumers in the market. Unilever
marketing department ensure that they have enough inventory to fulfil the requirements of their
customers in the market. Unilever continuously advertise their products in the market and for
that they maintain the effective supply chain in their business. This helps them to gain more
success in the future.
Relation of supply chain with the finance department
Effective supply chain is very important in the business and have direct relation with the
finance department of the business. As finance department of the company helps in decreasing
the cost by purchasing the raw material and furnished goods form that manufacturer who is
selling at the cheaper rate (Fosso Wamba and et.al., 2018). This also helps the companies to stay
ahead from the competition in the market as finance department ensures that they should sell the
products and services lesser than the competitor. Unilever finance department ensures that they
should link with that manufacturer and supplier who is taking very reasonable margin as it helps
the business to get more success in the market.

CONCLUSION
From the above report, it can be analysed that the supply chain management plays an
important role in the success of an organisation. As this helps in using the effective supply
network which facilitates the business to deliver the products and services to the ultimate
consumers. In this report there has been evaluation of the various supply chain concepts,
principles that helps in better understanding the concept of supply chain management. Logistics
and supply chain strategy also have been analysed that helps in staying in the competition in the
global market. There are various issues have also been discussed in relation to the supply chain
strategy. At last of this report, relation of the supply chain management have been undertaken
with the different areas of the business that helps in the success of the organisation. Along with
that, with the help of these strategies and models the company could attain the inherent goals and
objectives in the market.

REFERENCES:
Books and Journals
Ailawadi, S.C. and SINGH, P.R., 2021. Logistics and Supply Chain Management. PHI Learning
Pvt. Ltd..
Behl, A. and Dutta, P., 2019. Humanitarian supply chain management: A thematic literature
review and future directions of research. Annals of Operations Research, 283(1),
pp.1001-1044.
Chauhan, C. and Singh, A., 2019. A review of Industry 4.0 in supply chain management studies.
Journal of Manufacturing Technology Management.
Copacino, W.C., 2019. Supply chain management: The basics and beyond. Routledge.
Fosso Wamba, S and et.al., 2018. Big data analytics in operations and supply chain
management. Annals of Operations Research, 270(1), pp.1-4.
Jain, S., Jain, N.K. and Metri, B., 2018. Strategic framework towards measuring a circular supply
chain management. Benchmarking: An International Journal.
Kain, R. and Verma, A., 2018. Logistics management in supply chain–an overview. Materials
today: proceedings, 5(2), pp.3811-3816.
Khan, S.A.R. and Yu, Z., 2019. Strategic supply chain management. AG: Springer International
Publishing.
Kot, S., Goldbach, I.R. and Ślusarczyk, B., 2018. Supply chain management in SMEs-Polish and
Romanian approach. Economics & Sociology, 11(4), p.142.
Langley, C.J and et.al., 2020. Supply chain management: a logistics perspective. Cengage
Learning.
Mosteanu, N.R and et.al., 2020. Sustainability integration in supply chain management through
systematic literature review. Calitatea, 21(176), pp.117-123.
Pagano, A.M. and Liotine, M., 2019. Technology in supply chain management and logistics:
Current practice and future applications. Elsevier.
Richards, G. and Grinsted, S., 2020. The Logistics and Supply Chain Toolkit: Over 100 Tools for
Transport, Warehousing and Inventory Management. Kogan Page Publishers.
Saghiri, S.S and et.al., 2018. Omni-channel logistics special issue. International Journal of
Physical Distribution & Logistics Management.
Sperindeo, M., 2021. Big Data Analytics applied to Logistics and Supply Chain Management:
An Amazon Case Study (Doctoral dissertation, Politecnico di Torino).
Sweeney, E. and Waters, D., 2021. Global Logistics: New Directions in Supply Chain
Management. Kogan Page Publishers.
Van Goor, A.R., van Amstel, W.P. and van Amstel, M.P., 2019. European distribution and
supply chain logistics. Routledge.
Wang, Y., 2018. Fashion Supply Chain and Logistics Management. Routledge.
Waters, D., 2019. Supply chain management: An introduction to logistics. Bloomsbury
Publishing.
Zinn, W., Goldsby, T.J. and Cooper, M.C., 2018. Researching the opportunities and challenges
for women in supply chain. Journal of Business Logistics, 39(2), pp.84-86.