Outsourcing in UNILEVER

Unilever and the Industry Fast Moving Consumer Goods Company (FMCG) €51bn global turnover Products sold in 190 countries Foods, homecare and personal care 400 brands Competition - Proctor and Gamble (P&G), Nestle Foods, homecare… - Unilever is organised into three main global divisions. 400 powerhouse brands – 14 brands with sales of more than €1bn a year. 55% of Unilever’s business comes from emerging markets €928m spent on R&D worldwide in 2010 http://www.unilever.co.uk/Images/6550_Unilever_MBY_24ppMainBro_AW_v15_tcm28-365245.pdf

services outsourced by Unilever typically within the industry Accenture – Human Resources (2006) Deloitte – Facilitating the sales of two shared services (2009) IBM – Finance and procurement outsourcing deal (Jan 2013) Capgemini – Finance and accounting service partner. (Jan 2013) http://www.deloitte.com/view/en_US/us/Insights/Browse-by-Content-Type/Case-Studies/456a12f0c1798210VgnVCM200000bb42f00aRCRD.htm http://outsourcemagazine.co.uk/unilever-signs-up-accenture-for-hro/ http://www.supplymanagement.com/news/2012/unilever-in-108-million-outsourcing-deal-with-ibm/

Potential value to the organisation Low High Partnership outsourcing approach Core activity. Do not outsource! Transactional outsourcing Decision based on financial considerations Low High Organisational Expertise

How can outsourcing decisions be improved in the supply chain? Unilever’s market value and sales revenue lower than the competition Accenture and P&G Win ‘Most Innovative’ Outsourcing Excellence Award For Commercial Services Collaboration Unilever may need to focus on more innovative collaborations with their outsourcing partners Improve their integration and relationships Comparisons to P&G ( Direct FMCG competition) Can improve outsourcing in particular as part of the supply chain Unilever’s Market Value - $122.3bn P&G’s Market Value - $208.5bn Nestle’s Market Value - $233.5bn http://newsroom.accenture.com/news/accenture-and-p-g-win-most-innovative-outsourcing-excellence-award-for-commercial-services-collaboration.htm http://www.mbaskool.com/fun-corner/top-brand-lists/7769-top-10-fmcg-companies-in-the-world-2013.html?start=8 http://www.sharedserviceslink.com/news/unilever-signs-100-million-outsourcing-deal-with-capgemini

Risks? Unilever believe that outsourcing to service providers results in lower risk Proven track record Innovative technology and processes Understand the challenges of change management Expertise in large scale business transformations http://public.dhe.ibm.com/common/ssi/ecm/en/gtc03035usen/GTC03035USEN.PDF

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