MANILA, PHILIPPINES – Unilever is further developing its local manufacturing capabilities and supply chain strategies to meet the needs of its significant Filipino market. Present in about 9 out 10 homes in the country, the multinational FMCG’s products are household names where supply must meet constant consumer demand.
To date, over 90% of Unilever products sold in the market are locally manufactured. They are produced in factories in Pasig City, General Trias, Cavite, and a collaborative facility in Cabuyao, Laguna. Since the inauguration of its newest facility for its Beauty & Wellbeing and Personal Care (BWPC) factory in late 2023, production capacity for the portfolio has since increased by 60%. These locally made products are even exported to Unilever’s markets in the US, Southeast Asia, Africa, Australia, and the Middle East, spotlighting the company’s trust in the Philippines as a global manufacturer of its well-known offerings.
“Supply chain is the operational backbone of Unilever,” says Fredy Ong, the company’s Chairman and CEO. “We live in a world where consumers increasingly want faster, customized, and personalized products. With brands like Rexona, Sunsilk, Selecta, Breeze, and Knorr under our belts, we must always have a reliable stock of high-quality products and a supply chain that will deliver superior products and services at an excellent value.”
A future-fit supply chain
Unilever’s supply chain strategy leverages cutting-edge technology and 4th industrial revolution tools to optimize processes across its end-to-end value chain. Thanks to these technology upgrades, their newest BWPC factory has increased efficiency and reduced machinery by approximately 40%. A few principles they abide by include listening for signals and making timely actions where needed, prioritizing cost and asset base to create competitive growth, and building partner ecosystems that drive innovation and sustainability.
In terms of technology, Unilever’s factories in the Philippines and across the world are powered by renewable grid electricity. Its Foods (formerly Nutrition) factory has recently signed a 15-year Power Purchase Agreement with a global company to supply solar-powered electricity for factory operations. Unilever’s facilities are also built in strategic locations to minimize fuel usage and reduce carbon footprint – all integral steps to its ambition of achieving net zero emissions by 2039.
The FMCG’s use of technology also extends to analytics and data access. It harnesses AI-driven insights to accurately monitor and respond to market, customer, and operational trends, and automates routine tasks to increase efficiency while freeing up employees’ time to promote a balanced work culture. Supplementing these are the adoption of data visibility and accessibility through cloud computing and machine learning, and training sessions to ensure that employees are empowered to make informed decisions regarding supply and production.
Another key feature of Unilever’s technological transformation is its integrated operations program, positioning the company as one of the most digitized end-to-end supply chain leaders in the industry. Through closed-loop planning systems that connect suppliers, customers, and internal operations, the company optimizes its ecosystem for higher agility and optimized costs.
“Unilever has been in the Philippines for almost a century, and we’re optimistic about the next hundred years. By empowering our operations, harnessing advanced technologies, and investing in our people, we position ourselves at the forefront of innovation. This ensures that consumers, both locally and globally, have seamless access to the high-quality products and services they rely on,” adds Ong.
The ASEAN region and the Philippines in particular is a key a growth area for Unilever, contributing to over half of its global turnover. As the company enhances its local supply chain processes and strategies, it is poised to sustain business growth from the country, solidifying its importance as a key driver of Unilever’s global growth.
