European Supply Chain, Peter - Unilever
European Supply Chain, Peter - Unilever
European Supply Chain, Peter - Unilever
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Safe harbour statement<br />
<strong>European</strong> <strong>Supply</strong> <strong>Chain</strong><br />
<strong>Peter</strong> Ernsting<br />
SVP <strong>Supply</strong> <strong>Chain</strong> Europe<br />
14 th March 2007<br />
This presentation may contain forward-looking statements,<br />
including ‘forward-looking statements’ within the meaning of the<br />
United States Private Securities Litigation Reform Act of 1995.<br />
These forward-looking statements are based upon current<br />
expectations and assumptions regarding anticipated<br />
developments and other factors affecting the Group. They are not<br />
historical facts, nor are they guarantees of future performance.<br />
Because these forward-looking statements involve risks and<br />
uncertainties, there are important factors that could cause actual<br />
results to differ materially from those expressed or implied by<br />
these forward-looking statements. Further details of potential risks<br />
and uncertainties affecting the Group are described in the Group’s<br />
filings with the London Stock Exchange, Euronext Amsterdam and<br />
the US Securities and Exchange Commission, including the<br />
Annual Report & Accounts on Form 20-F. These forward-looking<br />
statements speak only as of the date of this presentation.<br />
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Agenda<br />
� <strong>European</strong> <strong>Supply</strong> <strong>Chain</strong> Organisation<br />
� From past to now<br />
� Next steps<br />
� Key drivers<br />
2006 implementation<br />
Rapid execution of One <strong>Unilever</strong> in <strong>European</strong> <strong>Supply</strong> <strong>Chain</strong><br />
� Key milestones USCC (<strong>Unilever</strong> <strong>Supply</strong> <strong>Chain</strong> Company)<br />
� June 05 UEx decision: establish USCC<br />
� August 05 USCC Office Neuhausen identified<br />
� January 06 USCC legally established & Office ready<br />
� Jan-Aug 06 150 employees (100 international moves)<br />
� USCC management scope<br />
� €8bn <strong>Supply</strong> <strong>Chain</strong> costs End-to-End<br />
� 85 Sourcing Units<br />
� 400 Copackers<br />
� 400 Warehouses<br />
3<br />
4<br />
2
Creating leverage across Europe<br />
Op<br />
Co Op<br />
Co Op<br />
Co<br />
Op<br />
Co Op<br />
Co Op<br />
Co<br />
Op<br />
Co Op<br />
Co Op<br />
Co<br />
Past Now<br />
Country A<br />
Country B<br />
Country C<br />
Accelerating innovation<br />
Country A<br />
Op<br />
Co Op<br />
Co Op<br />
Co<br />
Country B<br />
Op<br />
Co<br />
Country C<br />
Op<br />
Co Op<br />
Co<br />
Op<br />
Co Op<br />
Co Op<br />
Co<br />
Op Co<br />
Country A<br />
Op Co<br />
Country B<br />
Op Co<br />
Country C<br />
Op Co<br />
Country D<br />
Op Co<br />
Country A<br />
Op Co<br />
Country B<br />
Op Co<br />
Country C<br />
Op Co<br />
Country D<br />
USCC<br />
= Source, Make, Plan, Deliver<br />
Past Now<br />
Category<br />
Spreads<br />
Category<br />
HC<br />
Category<br />
PC<br />
Category<br />
IC<br />
Category<br />
Savoury<br />
USCC<br />
5<br />
Category<br />
Spreads<br />
Category<br />
HC<br />
Category<br />
PC<br />
Category<br />
IC<br />
Category<br />
Savoury<br />
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3
Focused customer service<br />
Country A<br />
Op<br />
Co Op<br />
Co Op<br />
Co<br />
Country B<br />
Op<br />
Co Op<br />
Co Op<br />
Co<br />
Country C<br />
Op<br />
Co Op<br />
Co Op<br />
Co<br />
Mission<br />
Past<br />
Customer<br />
service<br />
Customer strategy 1<br />
service<br />
strategy Customer 2<br />
service<br />
strategy 3<br />
Customer<br />
service<br />
Customer strategy 4<br />
service<br />
strategy Customer 2<br />
service<br />
strategy 6<br />
Customer<br />
service<br />
Customer strategy 7<br />
service<br />
strategy Customer 2<br />
service<br />
strategy 9<br />
Op Co<br />
Country A<br />
Op Co<br />
Country B<br />
Op Co<br />
Country C<br />
Op Co<br />
Country D<br />
Now<br />
USCC<br />
� Manage the <strong>European</strong> <strong>Supply</strong> <strong>Chain</strong> end-to-end:<br />
� Shelf driven : Customer Service & Consumer focus<br />
� Innovation enabling: faster, more responsive<br />
� Improve cost competitiveness<br />
Customer<br />
service<br />
strategy a<br />
Customer<br />
service<br />
strategy b<br />
Customer<br />
service<br />
strategy c<br />
Customer<br />
service<br />
strategy d<br />
Capabilities<br />
� Use scale for leading-edge <strong>Supply</strong> <strong>Chain</strong> capabilities<br />
7<br />
Opportunity<br />
Cost<br />
8<br />
4
Manage supply chain end to end<br />
� Bringing source, make, plan and deliver<br />
together:<br />
� Source : mirror the supply market & use functional<br />
scale<br />
� Make: synergies and best practices across whatever<br />
we do and ensure integration of business processes<br />
� Deliver: mirror the demand market & use scale<br />
Improve cost competitiveness<br />
� Further leveraging scale in buying<br />
� Re-shape <strong>European</strong> sourcing network using a fit for<br />
purpose approach across the different product categories<br />
� Optimisation Warehouse & Distribution network<br />
� Further simplify the SC organisation<br />
� Reduce working capital<br />
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10<br />
5
Implementation of Sirius<br />
BE/NL/USCC<br />
May 06<br />
2 SUs<br />
Jan 07<br />
FR + 2 SUs<br />
Feb 07<br />
R2: 3 opco’s + 8 SU’s<br />
P&A B T D<br />
Engage<br />
P&A = Plan & Analyse<br />
B = Build<br />
T = Test<br />
D = Deploy<br />
2<br />
SUs<br />
R3: 4 opco’s + 12 SU’s<br />
P&A B T D<br />
Engage<br />
10<br />
SUs<br />
R4: 4 opco’s + 11 SU’s<br />
P&A B T D<br />
Engage<br />
6<br />
SUs<br />
R5: 5 opco’s + 15 SU’s<br />
P&A B T D<br />
April 07 October 07 April 08 October 08<br />
Use scale for leading edge capabilities<br />
� In one place buying, make, plan and deliver<br />
working as one<br />
� Leverage cross-category expertise to share<br />
learnings and get cross benefits<br />
� Mobilisation of resources<br />
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Summary<br />
<strong>Unilever</strong> <strong>Supply</strong> <strong>Chain</strong> Europe<br />
One holistic approach to all our<br />
customers and consumers<br />
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