1. Outsourcing in UNILEVER

2. 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

3. 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)

4. 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

5. 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

6. 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

7. ANY QUESTIONS?