TRANSPORATION TECHNIQUES

AND MANAGEMENT
TERM REPORT

GROUP MEMBERS:

SHAHRUKH ALAYA- 22140

ARMAN ALAM- 24118
MUHAMMAD SALMAN- 24618

SUBMITTED TO:
SIR SAJID NAZIR
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Table of Contents
INTRODUCTION..................................................................... 3

ROLE OF LOGISTICS AND TRANSPORTATION IN UNILEVER…4

GREEN INITIATIVE IN LOGISTICS......................................... 5

MODES OF TRANSPORTATION..........................................7

TRANSPORTATION AND LOGISTICS ACTIVITIES.......................... 8

CHALLENGES: ............................. 9

CONCLUSION………………………9

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1-INTRODUCTION:
Unilever is a British Multinational FMCG company that has its headquarters in London. Its
product line includes food, ice cream, tea, coffee cleaning agents, cosmetic and beauty products
etc. Unilever was founded when Dutch margarine producer Margarine Unie and the British soap
maker Lever Brothers merged their companies together on 2nd September 1929. Unilever now
is the world's largest soap producer along with other products and its products are available
worldwide in over 190 countries. Unilever aims to provide people with day to day use items in
great quality that will increase their quality of living.

VISION:
Our vision is to grow our business,
while decoupling our environmental
footprint from our growth and
increasing our positive social
impact

MISSION:
By meeting everyday nutritional needs of people, as well as hygiene and personal care of people
through numerous brands and SKUs, Unilever plans to "Add Value" in lives and help them get
more out of life.

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2-ROLE OF LOGISTICS:
Logistics generally revolves around the management of the processes starting from the extraction
of the raw materials towards the end which is the order completion. What we can note is that
logistics isn’t just transportation; it is the product delivery in perfect quantities that too at the
required destination along with the storage and management of the overall processes.

The information flow from once upstream to downstream is equally involved. So, we can say
that transportation is only a small part of the overall functions of logistics that only deals with the
delivery of products from source to destination. Unilever being a multi-national company is
labeled as an FMGC that is known world-wide. It is functioning in a highly competitive market.
Their target is customers with well-defined requirements.

Logistics and transportation play a vital role in

maintaining their global market share only to meet the
strategic goals. The first perspective from which these
roles are important in Unilever would be the need of the
company to increase profitability levels by decreasing
transportation costs. The second perspective would be the
need to include sustainability within their logistics and transportation. Cutting logistics and
carbon emissions by 40% initially and by the end of 2030 to become carbon neutral is Unilever’s
current goal.

Mark Richkoff participated greatly in making his point that smart planning; alternate fuels and
the partnerships with technology startups would be helpful in achieving it. Unilever has recently
signed an agreement with JD logistics, China’s largest retailer, which enables them to be exposed
to smart and sustainable solutions in the logistics and transportation activities.

This determines how important logistics and transportation is for Unilever. Shared commitment
that ensures sustainability is what basically the agreement is based on. Unilever’s efforts are
promising, and ensure better opportunities in order to modernize the Unilever-JD ecosystem
while simultaneously reducing CO2 emissions.

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3-GREEN INITIATIVE IN LOGISTICS:
Unilever as one of the leading FMCG Company has a wide network of Supply Chain. It is spread
over to more than 190 countries with its huge range of products. Unilever has vast logistics
activities, reaching around average two billion consumers globally each day.

Having such huge logistics comes with some challenges and the most important one is the
environmental challenges. Unilever’s main goal is to lessen their carbon footprint in the
environment. They focus on producing sustainable and ecofriendly products.

Unilever won Oracle Sustainability Innovation award for its contribution to minimize carbon
footprint. They implemented Oracle transportation management i.e. Automated transport
planning algorithm yielded insight into Unilever’s transport and logistics planning and also in
decision making. This system proved to be a very advantageous as noticeable results were seen
after implementation. The critical business applications were integrated into this system such as
WMS, ERP applications, Electronic data interchange and 3rd party logistics providers.

The Oracle system was successfully able to minimize the carbon emission of Unilever North
America, by providing 24/7 support to the Unilever’s transportation issues that allowed IT
department to focus on other high priority core activities. The system improved the visibility of
the transportation and with incorporation of Just in Time approach, Unilever was able to
decrease the lead time. Unilever was able to make efficient decisions with this system as it
allowed them to make efficient loading and pallets placing decision in truck resulted in greater
utilization of the space. Unilever was able to reduce it carbon foot print around 40% by the end
of 2020 with these changes in logistics activities. By the end of year 2030, with the help of this
system, right fuel combination and efficient decision making, their target to be carbon neutral
would be achieved.

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Unilever strategy towards sustainable yet cost
reducing logistics is based on two pillars i.e.
Reducing the distance from origin to
destination and Greening the kilometers.
Unilever has set their factories and warehouses
in such a way, where there is huge demand, so
that they can reach their customers directly.
This strategy helps them to reduce the lead time
as the distance is shortened. To transport
maximum number of goods at once, Unilever has started using pallets of various heights that
helps in loading and utilization of space. Unilever has invested hugely on the vehicles and
technologies that reduce the carbon emission such as electric trucks which is far better than
diesel trucks. It is a very huge investment but it would help them to achieve their goals and
would be better in the long run.

To reduce the emission of CO2 and other harmful gases in the environment, it is important that
fleet should move from diesel to transition
fuels, although, they do contribute a bit in
pollution but not as much as diesel.

Unilever’s partnership with British

company, Dearman Engine Company is
one of its greatest achievements. Unilever
with Dearman Engine are trying to scale up
a new technology that can provide a clean cooling for the refrigerator containers with the use of
liquid Nitrogen. They installed these units in their fore transportation for 6 month trial in
Netherland. The trucks traveled around 18 thousand kilometers to deliver ice creams.

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4-MODES of TRANSPORTATION at UNILEVER:

Organization like Unilever contends in a profoundly cutthroat market and to keep up with its
situation as a worldwide pioneer is a most troublesome assignment. Unilever bargains in
generally scope of item which incorporates dove, Lipton, Hellmann's and so forth and their
assignment is to ensure that merchandise should be conveyed at the ideal opportunity and correct
spot. Unilever guarantees to apply a suitable programming which empowers them to satisfy their
client necessities which can further develop their administration level in a lower cost.

Unilever concocted the bravo programming arrangement which consolidates their general
activity in a typical stage. There are a few modes introduced by bravo's answer that are
incredibly gainful for Unilever and it incorporate, load, not exactly load, sea, little bundle and
multi-purpose. There are three periods of the interaction. The main stage incorporates that a redid
RFI to RFP measure welcomes chosen transporters for presenting their ability and proposition.
The subsequent stage incorporates
improvement investigation that
decides best worth arrangement and
not just has this it limited the expense
of business inclinations. The third
stage incorporates continuous
administration of agreements and
furthermore KPI intention is to keep
up with the normal worth.

The RFP empowers them to dissect

the enormous measure of data viably it separates the helpful data into the information base and
afterward it assess the best utilization of their assets and their abilities and assign the most
appropriate transporter for their items. Unilever sets a different transportation business place for
this product which can deal with contracts, steering framework, and screen inner and outside
transporter execution. This framework empowers quick and proficient transportation sourcing to
help and acknowledge prompt advantages for Unilever's US tasks.

All through each sourcing stage, Unilever changes its objectives and procedures, bringing about
expanded efficiencies and better execution. Bravo Solution streamlining innovation effectively
costs out necessities and needs, permitting vital choices to be removed right.

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5- SEVEN SIGINIFICANT LOGISTICS ACTIVITIES AT
UNILEVER:

1) Transport prerequisites are overseen in Unilever's ERP through Customer Ordering (optional
transportation), Procurement from providers (essential inbound transportation), arranging and
assembling (essential outbound transportation).

2) Deliveries are made in Unilever's ERP framework.

3) Deliveries get coordinated as transport request in UTMS (Unilever transport the board
framework).

4) Transport orders are arranged and upgraded into shipments.

5) Transport organizer tenders the shipments,

shipped off the Carrier.

6) The transporter check/designs the shipment

execution checking hardware, driver
accessibility and so on.

7) The transporter acknowledges/decreases the vehicle task by sending message to Unilever. On

the off chance that the transporter acknowledges the task, he will move into transport execution
mode.

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6-CHALLENGES:
 Unilever should invest in new technological innovations and fuels that are much better
for the environment.
 As Unilever is committed to achieve net zero emission by 2030 from their goods. From
the sourcing to procurement to point of sale of their product, it would be challenging to
achieve all of that.
 Unilever has set higher goals to protect and conserve high carbon eco system.

9- CONCLUSION:
Unilever is known to be a sustainable industry pioneer. Unilever has set goal to integrate a
sustainable and green initiative in their logistics activities. Their activities have potential to give
a blueprint to other companies to implement in their supply chain to reduce their carbon
footprint. The new technologies implemented in their logistics activities have reduced Unilever’s
carbon footprint by 40%. Unilever has set a goal to achieve to have their business to be carbon
free by 2030.

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 THANK YOU

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