UNIVERSITY OF ECONOMICS AND FINANCE

COURSE: LOGISTICS MANAGEMENT

ASSIGNMENT:
GROUP 1
LOGISTICS MANAGEMENT OF UNILEVER

N.o Student name Student ID Contribution

1 Truong Hoang Thanh 215081152 100%
2 Pham Duy Tan 215083097 100%
3 Vu Thi Phuong Thao 195082075 100%
4 Le Huynh Anh Thu 215083998 100%
5 Le Ly Gia Thao 215083215 100%
6 Vo Le Thanh Hang 215082750 100%

Lecturer: Dong Thi Tra My

HCMC, December 4th ,2023.
 TABLES OF CONTENTS
TABLES OF CONTENTS ..............................................................................................1

TABLE OF FIGURES ....................................................................................................2

I. Introduction of FMCG industry ...............................................................................3

1. Definition of FMCG industry ................................................................................3

2. Overview and trends of FMCG industry in Vietnam 2020-2023 .........................3

II. Unilever Company ...................................................................................................6

1. Introduction of Unilever Company .......................................................................6

1.1 Brief introduction ...............................................................................................6

1.2 History and Development process .....................................................................7

1.3 Main products.....................................................................................................9

2. Supply chain process of Unilever Company .......................................................11

2.1 Supply chain model of Unilever ......................................................................11

2.2 Overview of Unilever supply chain in end of 2022 .........................................14

2.3 Special features of Unilever Company featuring inventory management .......17

2.4 Challenges of Unilever Company featuring packaging/material factors .........21

2.5 Comments for packaging/material problems ...................................................25

2.6 Solutions for packaging/material problems .....................................................25

III. Conclusion ...........................................................................................................30

REFERENCES ..............................................................................................................31

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 TABLE OF FIGURES

Figure I.1. VN-FMCG-Contribution to Growth in 2022 vs 2019 ...................................4

Figure I.2 A positive economic outlook and growing domestic demand are driving a
rise in fast-moving consumer goods ................................................................................5
Figure II.1. Unilever's international business strategy ....................................................6
Figure II.2. William Hesketh Lever, 1st Viscount Leverhulme ......................................7
Figure II.3. Unilever brands ............................................................................................9
Figure II.4. Household Cleaning and Detergent Chemicals Group ................................9
Figure II.5. Beauty and Personal Care Group ...............................................................10
Figure II.6. Supply chain Model of Unilever ................................................................11
Figure II.7. Unilever factory in Cu Chi, Vietnam .........................................................12
Figure II.8. Suppliers per spend category ......................................................................14
Figure II.9. Geographic distribution of Suppliers .........................................................15
Figure II.10. The Connected Supply Chain ...................................................................16
Figure II.11. Unilever’s Inventory and common size from 2018-2022 ........................17
Figure II.12 Model showing how VMI works ..............................................................18
Figure II.13. CPFR Model .............................................................................................19
Figure II.14. Information Unilever on Greenpeace which is an environmental website
.......................................................................................................................................21
Figure II.15. The negative impact of Unilever's plastic waste ......................................22
Figure II.16. Unilever’s sachet sales and projected sachet sales ...................................23
Figure II.17. Contradictions before Unilever's statements ............................................24
Figure II.18. Waste from Unilever's sub-brands ...........................................................24
Figure II.19. Using Robots to sort plastic wastes ..........................................................26
Figure II.20. Life of Bioplastics ....................................................................................27
Figure II.21. Website of an phat bioplastics ..................................................................28
Figure II.22. Product description with new design .......................................................29

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I. Introduction of FMCG industry
1. Definition of FMCG industry

FMCG is an acronym for Fast Moving Consumer Goods. This industry

includes all essential consumer goods in human life.
FMCG also has another name: CPG (Consumer Packaged Goods).
They include consumer products with large sales power and high number
of product consumption from customers. Normally, the quantity of products
produced at FMCG companies is very large and is used regularly by consumers.
Production costs and profit margins on each product are relatively small. The
shelf life of the products is short but they are consumed very quickly because
customers have a high need to repurchase products, therefore, profits are low.
accumulation on those products is quite significant.
2. Overview and trends of FMCG industry in Vietnam 2020-2023
The FMCG sector in Vietnam is evolving rapidly, with growth mainly
driven by essentials, home care, and personal care and new products being
launched every hour, new channel and technology players, and more
sophisticated consumer preferences.
FMCG consumption in Vietnam has returned to normal, and this is a
positive sign for the economy. In 2022, the FMCG growth rate reached an
impressive 9.6%, surpassing the pre-COVID levels of 2019. Moreover,
compared to 2021, the industry has experienced a remarkable growth of 17.5%,
indicating a strong positive trajectory.
Amidst the pandemic, dry food items and personal hygiene products were
the leading goods purchased for stockpiling among Vietnamese. As a result, the
highest value growth rates among all FMCG categories in 2020 have been
observed among personal care and packaged foods.

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 Figure I.1. VN-FMCG-Contribution to Growth in 2022 vs 2019
Soure: nielsenig.com

Despite recent headwinds from global inflation, Vietnam remains a

promising market, with a robust GDP growth rate of 8.02% in 2022, the highest
of any Southeast Asian country.
5 major consumer trends that will shape the FMCG market in Vietnam in
2023.
• FMCG growth stalling
In 2022, rising prices drove FMCG value growth while volume
consumption in Urban 4 remained flat. Rural regions showed promising signs as
FMCG volume picked up after a period of stagnancy in 2021.
• Global economic slowdown
The global economy is expected to continue to slow down before
rebounding in 2024. In early 2023, with China’s reopening and resilient demand
from EU, the IMF raised its Global GDP forecast for 2023 from 2.7% to 2.9%,
albeit still a slower growth than that of last year.
• The future of online shopping
The emergence of TikTok shop and other technological advances will
enhance the online shopping experience and fuel the growth
• Health & wellness as a lifestyle

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 Health motivations are becoming key decision drivers in FMCG purchases,
with more consumers prioritizing and willing to pay more for products that offer
health benefits or align with their wellness goals.
• Momentum for a sustainable lifestyle
Sustainability is returning to the forefront of discussions among businesses,
policy makers, and consumers in Vietnam. FMCG brands need to seize this
opportunity to help consumers turn their desire to do good into action.

Figure I.2 A positive economic outlook and growing domestic

demand are driving a rise in fast-moving consumer goods
Source: vietnamnews.vn

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II. Unilever Company
1. Introduction of Unilever Company

1.1 Brief introduction

Unilever is a global group of British and Dutch. Currently, the CEO of the
company is Alan Jope (appointed January 2019).
- Brands are available in more than 190 countries
- Currently, about 2.5 billion people use the product every day
- Revenue in 2020 reached 51 billion euros with 58% coming from
emerging markets
- Up to 25 million retailers join the supply chain to create a global network
- There are 400+ brands that are familiar to every family
- There are 13 brands with revenue of more than 1 billion euros in 2022, of
which 81% of brands belong to top 2 markets
- Unilever owns 13 brands in Kantar's top 50 global brands

Figure II.1. Unilever's international business strategy

Source: phantichchienluoccuaunilervn.com

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 1.2 History and Development process
a/ History of formation:
Unilever was founded on September 2, 1929 by the merger of two
businesses, Lever Brothers (a soap company in the UK) and Margarine Unie (a
margarine company in the Netherlands). In the second half of the 20th century,
the company increasingly diversified its products and expanded its reach
worldwide.
Unilever with the original name Lever Brothers, originally doing business
Food items, then turned to the soap business Room and achieved a lot of success.
The origin of the business idea. This business is William Hesketh Lever.

Figure II.2. William Hesketh Lever, 1st Viscount Leverhulme

Source: Williamheskethlever1stviscountleverhulme.com

In 1884, Lever bought himself a small soap factory. After the success of the
unique soap product Lever's Pure Honey, the company continues to launch a
new, high-quality product line called Sunlight.
Lever acquired Vinolia - a soap company, in 1910 - acquired Hudson's - a
large detergent manufacturer in England. Between 1910 and 1915, three more
British soap manufacturers were acquired, one of which was Pears, a major
competitor of Unilever.
Lever continues to ''expand'' into Africa.' Unilever's position in expanding
its business to produce margarine.

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 In September 1929, the merger between Margarine Union (Netherlands)
and Lever Brothers was carried out. A new Anglo-Dutch alliance called Unilever
was born

b/ The development process:

1930-1939: Unilever's first decade was not easy. While the business
streamlined operations, it also continued to diversify.
1940-1949: Continued further expansion into the food market and increased
investment in research and development.
1960-1969: As the world economy expands, Unilever begins developing
new products, entering new markets and implementing an ambitious
acquisition program
1970-1979: Fast-moving consumer goods (FMCG) sector when large
retailers began to be aggressive.
1980-1989: Unilever centralized its portfolio and streamlined its business
to focus on core products and brands.
1990-1999: Business expanded to Central and Eastern Europe
2000-2009: The 2000s began a five-year strategic plan, which was clearly
implemented in 2004 with Unilever's Vitality mission targeting consumer
needs.
In 2009, Unilever announced a new corporate vision. 2010 with a new
strategy: The Compass. To support this strategy, Unilever's Sustainable
Living Plan was launched in 2010.
2010-present: Implementing the Sustainable Living Plan

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1.3 Main products
a/ Beverage and Food Group

Figure II.3. Unilever brands

Source: wikipedia.com

b/ Household Cleaning and Detergent Chemicals Group

Figure II.4. Household Cleaning and Detergent Chemicals Group

Source: wikipedia

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c/ Beauty and Personal Care Group

Figure II.5. Beauty and Personal Care Group

Source: wikipedia

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2. Supply chain process of Unilever Company

2.1 Supply chain model of Unilever

Figure II.6. Supply chain Model of Unilever

Source: “Chuoi Cung Ung va Ung Dung trong tap doan Unilever”, 2013

Thus, the supply chain is a network consisting of units and stages related to
each other in exploiting resources to produce products for consumers, including
intermediate stages such as transportation, warehousing, wholesale, retail and
customers themselves.

a/ Supplier
Main Supplier: Vietnam Chemical Group (Vinachem).
Position in the Supply Chain: Vinachem is a strategic supplier and part of
the global supply chain of Unilever. In addition to existing long-term
manufacturing and processing partnerships, the relationship between Unilever
and Vinachem's subsidiary companies is also being successfully developed by
both parties.
Role in the Supply Chain:
- In 1999, NETCO, a Vinachem member, initiated a collaboration with
Unilever to produce cleaning products in Biên Hòa and Hanoi. This extensive
partnership spans technology, manufacturing, and training, focusing on domestic
detergent production. Vinachem's member companies have played a crucial role
in Unilever Vietnam's business, contributing to the development of proprietary
brands and boosting the competitive capabilities of both Unilever and Vinachem.
- On September 21, 2010, Vinachem and Unilever signed an agreement to
strengthen their supply relationship. The goal is to position Vinachem as a
strategic supplier in Unilever's global supply chain, emphasizing support for

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local production development and reducing import dependence to enhance
competitiveness.
- In Vietnam, Unilever currently sources some key raw materials from
Vinachem and its member companies. However, certain essential materials like
LAB, Sodium sulphate, Soda Ash Light, Sorbitol, and Zeolite still require
import, valued at over $100 million annually. Therefore, Vinachem and its units
collaborate with Unilever to locally produce these materials in Vietnam for
mutual benefits. Both parties will jointly plan production and supply based on
competitive pricing and future usage needs. Unilever Vietnam's stable raw
material supply system has helped cut import costs, lower product prices, and
mitigate the impact of market fluctuations, enhancing product competitiveness
in the Vietnamese market.
Other suppliers: Currently, Unilever Vietnam has approximately 76
material suppliers, 54 packaging suppliers, and utilizes around 60% domestically
sourced materials and 100% locally produced packaging.

b/ Producer

Main manufacturer: Unilever Vietnam's factory in Cu Chi

Figure II.7. Unilever factory in Cu Chi, Vietnam

Source: collection

Position in the chain: The Unilever Vietnam integrated factory complex in

Cu Chi, Ho Chi Minh City, is evaluated as one of the most efficient
manufacturing clusters within the global Unilever network and plays a crucial
role in Unilever's production activities in Vietnam.

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 Role in the chain: This is one of Unilever's largest liquid home care product
manufacturing facilities in the Asia region. It features a system of mixing tanks
that adhere to Unilever standards and international design norms, with a
production capacity exceeding 5 million units per day. The plant is equipped with
advanced manufacturing equipment to meet Unilever's highest standards and
requirements for product quality, ensuring safety and environmental friendliness.
To date, Unilever has invested over 60 million USD in the Unilever
Vietnam factory in Cu Chi district, creating employment opportunities for more
than 1,300 workers and office staff. The company has collaborated with 85
domestic suppliers of raw materials and services, generating jobs for over 10,000
workers employed by Unilever's partners in Vietnam. The factory is equipped
with state-of-the-art production and packaging technology, ranking among the
top in the world, and produces everyday products such as Omo, Sunlight, Clear,
P/S, knorr…
Other manufacturing facilities: In addition to the main production plant in
Cu Chi district, Unilever Vietnam currently operates factories in Hanoi, Thu Duc,
and the Bien Hoa industrial zone.

c/ Distributor
Main Distributor: Unilever Vietnam's distribution center in Binh Duong
province.
Position in the chain: It serves as the main distribution center for Unilever
Vietnam and is the largest consumer goods distribution center in the Vietnam-
Singapore Industrial Park (VSIP) in Binh Duong province.
Role in the chain: This facility is Vietnam's largest distribution center,
spanning 10 hectares. Phase 1, covering 60,000 square meters at a cost of 12
million USD, includes a warehouse with 33,000 square meters of space, storing
20,000 tons with a daily capacity of 2,000 tons. It features modern equipment
and layout, addressing Unilever Vietnam's growing storage and distribution
demands. This center accelerates product delivery to consumers and supports
Unilever Vietnam's business growth. Additionally, it caters to Unilever's supply
chain services, distributing products in the southern region, transshipping goods
to Da Nang and Bac Ninh, and exporting to 18 countries worldwide.
Other distributors:Unilever has an extensive distribution network across all
63 provinces and cities in Vietnam, including major urban centers like Hanoi, Ho
Chi Minh City, Da Nang, Hai Phong, and Quang Ninh. With approximately 150
major distributors and over 300,000 wholesale and retail outlets, Unilever's
network in Ho Chi Minh City is the broadest in the Vietnamese market. The
distribution channels consist of both the company's system and partner
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distributors, typically ranging from 2 to 3 in each province, supported by
Unilever's sales and supervision teams. The number of distributors is increased
in larger cities to meet market demand.

d/ Customer
Customers represent the final elements in the supply chain, as they are the
ones who will consume the goods. For Unilever, placing people at the forefront
is the first and foremost principle. This doesn't simply refer to shoppers or
consumers; the brand focuses on real people with real lives, needs, and dreams.
Unilever's diverse customer base ranges from individuals and families aged
14-50 with varying incomes to health-conscious individuals. The food segment
targets consumers starting from 5 years old, emphasizing delicious and nutritious
options. Unilever's products garner significant attention from customers in
regular stores like grocery stores, convenience store....

2.2 Overview of Unilever supply chain in end of 2022

Figure II.8. Suppliers per spend category

Source: Supply chain overview at the end of 2022 .

Unilever operates a vast, globe-spanning supply chain to deliver its

portfolio of consumer goods to millions of households. With €43.2 billion in
annual expenditure through 52,000 suppliers, the operational scale matches the
manufacturer's market ubiquity. This supplier spend breakdown is divided into
six categories, illustrating Unilever's diverse supply chain and procurement
needs across Raw Materials, Marketing & Business Services, Packaging,
Logistics & Operation, Contact Manufacture and Capex & MRO
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 Raw materials represent Unilever's largest supplier spend category at 39%
(or €16.85 billion) annually via 7% suppliers(or 3640 suppliers). This
encompasses ingredients that go into Unilever's food, refreshment, personal care,
and cleaning products. Securing reliable, responsibly sourced raw materials is
critical for Unilever's global production.
Marketing and business services make up 28%(or €16.85 billion) with 54%
suppliers (or 28080 suppliers). This category probably includes digital and
traditional marketing agencies that help promote Unilever's over 400 brands
globally, building awareness and engagement through campaigns and content
creation. It also covers business services like management and technology
consulting firms that advise Unilever on strategy, operations, systems
implementation, and process optimization.
Packaging accounts for 14% (or €6.05 billion) through 3% suppliers (1560
suppliers). Key considerations are functionality, safety, cost-efficiency,
sustainability, branding, and consumer experience. Packaging protects product
integrity and quality while appealing to target audiences. Unilever collaborates
closely with suppliers to innovate more sustainable packaging materials and
designs that reduce environmental footprints.

Figure II.9. Geographic distribution of Suppliers

Source: Supply chain overview at the end of 2022 .
Unilever's Geographic distribution of Suppliers has an extremely tight
network spanning from Europe, Asia, North America, South & Central America,
Africa and the Middle East, Russia, Ukraine & Belarus.
Europe represents Unilever's largest regional concentration of suppliers,
accounting for 31% of the total. This aligns with Unilever's UK and Netherlands
headquarters. Extensive operations across Western Europe also drive sourcing
for R&D, manufacturing, marketing, business services, and talent acquisition.

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 Asia follows with 30% share of Unilever's suppliers. China, India, and
Southeast Asia offer key sourcing markets for raw materials, contract
manufacturing, logistics, and packaging capabilities that support Unilever's
regional business interests.
North America represents 21% of suppliers, supported by substantial
Unilever commercial operations across the US and Canada. Sourcing focuses on
strategic priorities like marketing, digital innovation, data analytics, e-
commerce, and media.

Figure II.10. The Connected Supply Chain

Source: Supply chain overview at the end of 2022 .
At the core of Unilever's supply chain strategy is the concept of an
intelligent, integrated "Connected Supply Chain" that provides competitive
advantages through six key enablers:
1. Agility & Resilience: Unilever aims to rapidly respond to market signals
and orchestrate timely actions across end-to-end value chains to deliver superior
customer service, execute with discipline, and demonstrate resilience.
2. Optimize Assets & Costs: Continual optimization of supply chain assets
and cost structure enhances productivity, efficiency, and ultimately fuels growth.
This includes a future-fit supply chain talent strategy.
3. Sustainability: Unilever pursues a sustainable supply chain vision that
strives to improve social, environmental, and ethical outcomes for people and the
planet through everyday operational excellence and purpose-led partnerships.

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 4. Develop Talent: With dynamic capabilities imperative to supply chain
performance, Unilever focuses on nurturing an inclusive culture driven by
values-based leadership and investing in lifelong learning.
5. Digital Transformation: Harnessing data analytics, AI/ML technologies,
predictive insights, and other Fourth Industrial Revolution innovations seek to
enhance end-to-end decision-making, visibility, and sustainable value creation.
6. Partner Ecosystem: Unilever strategically collaborates with customers,
suppliers, and innovation partners to fuel market-leading products and services,
meet changing consumer expectations, and achieve mutual business growth.
Taken together, these six enablers aim to deliver a Connected Supply Chain
that provides superior service levels, quality, value, and responsible growth -
both for Unilever and partners across its ecosystem. The strategy indicates the
commitment to modernization.

2.3 Special features of Unilever Company featuring inventory

management
a/ Unilever’s inventory statistics

Figure II.11. Unilever’s Inventory and common size from 2018-2022

Source: finbox.com
From 2018 to 2023, Unilever's inventory has shown a consistent upward
trend. This suggests the company's inventory management has flexibly adjusted
to meet market demands without causing waste or shortages.
The percentage of inventory to total assets has risen from 2018 to Q2 2023,
indicating enhanced inventory management. This increase could be a result of
optimizing the supply chain processes and managing inventory risks.
In recent periods of market and asset growth, Unilever has maintained
relatively stable inventory levels, and in some instances, even increased them.
This indicates the company's flexibility to adjust production and inventory to
meet heightened demand.

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 b/ Unilever operates VMI in 10 countries with a fully centralized
GCS EWR Plus
Definition: VMI stands for Vendor-Managed Inventory. It is a business
model where the supplier or vendor of a product takes responsibility for
managing the inventory levels of that product at the customer's (buyer's) location.
In a VMI system, the supplier is not just responsible for manufacturing and
delivering the product but also for monitoring and restocking the inventory at the
customer's premises.

Figure II.12 Model showing how VMI works

Source: insightsolutionsglobal.com

Step 1: The vendor delivers materials to a specified location designated by

the manufacturer, conveniently located within a 1 to 2-hour drive from the
assembly site.
Step 2: A third-party logistics company takes charge of material
management on behalf of the vendor.
Step 3: The vendor and manufacturer collaborate to synchronize inventory
details and establish an ongoing replenishment strategy. This ensures that the
manufacturer can make payments as materials are utilized.

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 Benefits:
Since 1995, Unilever has been applying VMI using a tool called GCS EWR
Plus to help with its supply chain. This tool is like a helper that makes sure
Unilever doesn't have too much stuff in its warehouses. It helps Unilever
coordinate when it gets new materials and when it delivers products during the
manufacturing process.
This tool is particularly useful because it allows Unilever to work closely
with its customers and control the costs of delivering products. By using data
about what is sold and what is left in stock, Unilever can respond quickly and
feel more confident when dealing with customer orders. And the best part is,
because this tool keeps things running smoothly, Unilever's teams don't have to
spend too much time on complicated processes.
With VMI, Unilever has improved how available its products are for
customers, reaching rates as high as 99.9%. In one part of the company in
Denmark, called Frisko, they use this tool with a customer named Netto, and they
even reach a perfect 100% when filling up shelves.
Overall, this tool helps Unilever reduce the amount of stuff it keeps in
warehouses by up to 30%. This makes it easier to manage orders, and it also
saves money on administrative costs and how the products are delivered to
customers.1

c/ CPFR Model
Unilever applies the Collaborative Planning, Forecasting, and
Replenishment (CPFR) model as part of its strategic supply chain management.

Figure II.13. CPFR Model

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Source: Pfeifer et al., 2017
CPFR is a collaborative business practice that involves joint planning and
forecasting between trading partners to enhance overall supply chain efficiency.
Collaborative Planning: Partners work together to develop joint business
plans, incorporating strategies for promotions, new product introductions, and
inventory management.
Forecasting: Collaborative forecasting involves sharing sales and
inventory data to create more accurate and reliable forecasts. This collaborative
approach helps anticipate demand fluctuations and market trends.
Replenishment: The goal is to optimize inventory levels through
synchronized replenishment processes. Automated systems are often employed
to trigger replenishment orders based on shared data and agreed-upon criteria.
Benefits:
The CPFR agreements with specific retail clients have significantly boosted
asset utilization, reducing inventory holdings by 10% and improving overall
efficiency for Unilever. These improvements are grounded in enhanced
communication between Unilever and its 9 retail partners, crucial for refining
forecast accuracy given the influence of unpredictable external factors on orders.
Implementation of these strategies has strengthened alliances with retailers,
leading to a 10% enhancement in forecast accuracy. Consequently, Unilever
experienced a corresponding 10% decrease in inventory holdings and a 5% boost
in sales volume (cascade.app, 2020). These results highlight the substantial
impact of CPFR strategies on Unilever's logistics management effectiveness and
the overall efficiency of its supply chain.

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 2.4 Challenges of Unilever Company featuring
packaging/material factors

Figure II.14. Information Unilever on Greenpeace which is an

environmental website
Source: Greenpeace
Unilever, one of the world’s largest multinational consumer goods
corporations, has always portrayed itself as an environmentally friendly
company with green products. However, the discovery of 193 critical articles
about Unilever’s environmental issues on Greenpeace’s website tells a different
story.1
The allegations largely focus on problems like air and water pollution
around some of Unilever’s factories, the use of ingredients like palm oil in many
products leading to deforestation, and the excessive packaging of various goods.
There are also accusations that Unilever produces huge amounts of plastic waste
but does not take responsibility.
In fact, Unilever had been charged with over 100 environmental violations
before Greenpeace even began its company-targeting campaign in 2008. With
193 articles found on just the Greenpeace site alone, it is probable that this
problem is much more serious than the public perception of Unilever.
This raises the next question of whether Unilever’s commitments to
environmental protection and sustainability over recent years are reliable or not.
Perhaps it is time for the company to undergo a robust restructuring strategy to
address criticisms and clean up its image.

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 a/ Unilever Uncovered

Figure II.15. The negative impact of Unilever's plastic waste

Source: Income on the internet

Despite ostentatious pledges of “less plastic, better plastic or no plastic,”

Unilever’s plastic footprint displays no evidence of abating. The company
churned out a staggering 610,000 tonnes of plastic packaging in 2017, escalating
to an annual output topping 700,000 tonnes from 2018-2021. After peaking at
713,000 tonnes in 2021, the 2022 figure barely reduced to 698,000 tonnes - miles
away from its 50% reduction commitment by 2025. In fact, at the current route,
this target will not be fulfilled until at least 2034.
In addition, Unilever trumpeted a “world without waste” vision whilst a
miniscule 0.2% of its plastic packaging is reusable. At today’s glacial transition
pace towards reuse models, a fully circular system will take until the next
millennium to materialize. Meanwhile, Unilever continues flooding markets with
over 53 billion sachets annually - 1,700 per second - earning infamy as the
world’s largest peddler of single-use plastic pouches. These have instigated
global appeals for bans given their devastating impacts on environments and
health, especially across underprivileged communities in developing countries.2

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 Figure II.16. Unilever’s sachet sales and projected sachet sales

Source: https://issuu.com/greenpeaceinternational/docs/unilever-uncovered

Thirteen years have passed since Unilever first pledged action to tackle the
packaging waste crisis back in 2010. However, the past decade quietly witnessed
the company substantially scaling up its packaging volumes before figures
dropped during the pandemic years of 2020-2021, only to then hit the staggering
more than 50 billion sachet in 2022, with volumes linearly increasing by 1-2
billion sachet annually.
Remarkably, this period saw rising public awareness of plastic pollution as
well as increasingly stringent environmental policies. On the other hand,
Unilever seemed to completely disregard the environmental challenges the world
is facing. Instead, to achieve unrestrained growth, they opted to sacrifice their
promise to pump out billions more packaging into the market.
This makes it difficult to trust Unilever when they champion addressing
this crisis. Their talk is no longer aligned with action.

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 Figure II.17. contradictions before Unilever's statements

Source: https://issuu.com/greenpeaceinternational/docs/unilever-uncovered

b/ The harsh truth behind Dove's real beauty

Figure II.18. Waste from Unilever's sub-brands

Source: Greenpeace

Globally renowned beauty brand Dove has built its reputation on uplifting
female confidence regardless of shape or size. However, Dove’s mainstream
product lines - creams, shower gels and facial cleansers packaged in single-use
plastic sachets - are contributing towards another ‘man-made disaster’ in which
women happen to bear the greatest brunt.

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 Specifically, Dove churns out approximately 6.4 billion units of single-use
plastic packaging annually. Accounting for over 10% of parent company
Unilever’s total plastic pouch output, this is an extremely alarming figure. By
targeting female, low and middle-income consumers alongside clever marketing
ploys, Dove has succeeded in promoting its brand to millions globally. The brand
astutely tapped into women's escalating personal care needs and desires for
empowerment.
Therefore, despite self-proclaiming as a women-centric and sustainable
brand, Dove is complicit in exacerbating environmental burdens by producing
billions of non-biodegradable pouches. Additionally, such plastic sachets pose
direct health hazards for residents in areas lacking proper waste management
frameworks, especially across developing nations. They also drive severe ocean
pollution and disruption of marine ecosystems.3

2.5 Comments for packaging/material problems

Unilever's extensive reliance on plastic packaging remains a pressing
environmental concern, contributing significantly to the global plastic crisis.
Despite the company's commitment to reducing its plastic footprint, progress
toward meaningful change has been sluggish. Single-use plastic packaging,
synonymous with many Unilever products, raises questions about the company's
role in perpetuating the issue of plastic pollution on a global scale. There is a
need for more aggressive and effective measures to achieve the ambitious
reduction targets set by Unilever. Transparent reporting on the progress made
and a more rapid transition towards sustainable alternatives are imperative to
address the environmental challenges associated with the company's excessive
use of plastics.

2.6 Solutions for packaging/material problems

2.6.1. Using Technology for sorting plastic
Implementing an AI-driven plastic sorting system is a highly recommended
solution for Unilever to substantially reduce its plastic usage. By incorporating
artificial intelligence into the waste management process, Unilever can
streamline the identification and sorting of plastics, allowing for a more efficient
separation of recyclable materials. This technology enables the automatic
recognition of various plastic types, ensuring that only plastics deemed
economically viable for recycling are selected. The sorted plastics can then be
prioritized for reuse or recycling, minimizing the reliance on virgin plastic and
promoting a more sustainable, circular economy. The use of AI not only
enhances the accuracy and speed of the sorting process but also provides
Unilever with valuable data insights for continuous improvement in its plastic
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 reduction initiatives. This solution aligns with Unilever's commitment to
environmental responsibility and sets a progressive example for the industry in
adopting innovative technologies to address the global plastic crisis.
Based on this solution, some steps can be divided below:
Step 1: Implement automated recognition systems within Unilever's waste
disposal facilities. These systems utilize AI to identify and categorize different
types of plastics, ensuring a precise and efficient sorting process.
Step 2: Develop an AI-driven algorithm to assess the economic viability of
recycling each type of plastic. This assessment considers factors such as market
demand, recycling costs, and environmental impact, enabling Unilever to
prioritize plastics that are both economically feasible and environmentally
sustainable for recycling.
Step 3: Sorting for Reuse. Utilize AI to categorize plastics that are
economically viable for recycling and determine which can be effectively
repurposed within Unilever's product packaging. This step aims to maximize the
reuse of plastics within the company's operations.
Step 4: Collaboration with Recycling Partners: Establish partnerships with
recycling centers equipped to handle the prioritized plastics. Collaborate on
efficient channels for the collected plastics to be recycled, contributing to the
broader goal of promoting a circular economy.

Figure II.19. Using Robots to sort plastic wastes

Source: lunikprod.com
2.6.2. Proposals for Unilever's environmental protection measures
through packaging can focus on two main aspects: materials conversion and
product usage. Below are expanded details on both:

a/ Materials Conversion:
• Increase Use of Recycled Materials:

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 Transitioning from conventional plastics, such as PET, OPA, PE, OPP,
CPP, and EVOH, to recyclable plastic materials marks a crucial and
environmentally responsible step. This strategic shift not only addresses the
challenges posed by traditional plastics but also significantly contributes to
mitigating the strain on natural resources. By embracing recycled plastic waste,
companies actively participate in a sustainable approach that lessens the demand
for virgin plastic production, easing the ecological burden on raw material
extraction and manufacturing processes.
• Introduce Materials from Sustainable Sources:
Another imperative strategy involves exploring and seamlessly integrating
materials from sustainable sources into products. This includes innovative
options like bioplastics derived from algae, grass, or other renewable materials.
Alternatively, companies can focus on minimizing the overall plastic content in
product packaging. This dual approach not only diversifies material sources but
also aligns product development with eco-friendly practices, contributing to the
reduction of environmental impact.

Figure II.20. life of Bioplastics

Source: https://ecofriend.com/bio-plastics-good-bad-ugly.html

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 Additionally, there's a strong emphasis on the development and application
of bioplastics. Investing in research and development to create waterproof and
flexible bioplastics presents a viable alternative to traditional plastic materials.
This not only addresses the issue of plastic waste but also supports a closed-loop
recycling system, promoting a more circular economy.
• Convert Supply Partners:

Figure II.21. website of an phat bioplastics

Source: https://anphatbioplastics.com/
Collaborating with supply partners plays a pivotal role in ensuring a
consistent and high-quality supply of eco-friendly materials. By establishing
close relationships with trusted suppliers such as EuroPlas, BASF, TIPA, or An
Phat Bioplastics (which is a company in Vietnam), companies can secure a
sustainable stream of materials.

b/ Usage:
• Encourage Sustainable Packaging Usage:
Promoting sustainable packaging practices involves a shift in consumer
behavior from tearing open product packages to adopting a more eco-friendly
method of opening by folding. This intentional approach aims to minimize waste
generated when traditional tearing methods result in packages being split into
two. By encouraging the adoption of a folding technique, not only can the amount
of packaging waste be reduced, but it also optimizes the recycling process by
maintaining the integrity of the packaging material.4
Additionally, this initiative supports a more circular approach to packaging,
emphasizing the importance of not just the end-user, but the entire lifecycle of
the product. By reducing the fragmentation of packaging, companies contribute
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 Figure II.22. Product description with new design
Source: Designed by Hoang Thanh - group 1
to a more efficient recycling loop and address the environmental challenges
associated with the disposal of packaging materials.
• Educate Customers:
An integral component of sustainable packaging is customer education.
Developing comprehensive education campaigns becomes essential in raising
awareness among customers about the significance of adopting sustainable
packaging practices. These campaigns can include information on the
environmental impact of traditional packaging methods, the benefits of
sustainable alternatives, and the role consumers play in driving positive change.
Education efforts should not only focus on the ecological aspects but also
highlight the broader sustainability goals of the company. By providing
customers with a deeper understanding of the environmental implications of their
choices, companies empower them to make informed decisions aligned with a
more eco-conscious lifestyle. This educational approach contributes to fostering
a sense of responsibility among consumers, encouraging them to actively
participate in reducing their environmental footprint through mindful packaging
practices.5

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III. Conclusion
In the current economic conditions, Unilever has been relentless in
implementing various strategies related to the overall landscape and trends in the
Fast-Moving Consumer Goods (FMCG) industry in Vietnam. Its history and
development process, as well as the adoption of the Vendor-Managed Inventory
(VMI) model using a tool named GCS EWR Plus to support its supply chain,
particularly transportation factors, are noteworthy. Challenges related to raw
materials require Unilever to coordinate effectively when receiving new
materials and delivering products during the production process. This
demonstrates the company's flexibility in adjusting production and inventory to
meet demands. A robust restructuring strategy has been implemented to address
criticisms and environmental issues effectively. Unilever takes pride in being a
companion in everyone's life, not only through its products but also through a
profound concern for the community. Unilever significantly contributes to
improving the lives of individuals.

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 REFERENCES
1. Generix Group - UNILEVER: Unilever operates VMI in 10 countries with a fully
centralised GCS EWR Plus. Accessed December 5, 2023. http://www.scm-
portal.net/case/1523/UNILEVER:__Unilever_operates_VMI_in_10_countries_wit
h_a_fully_centralised_GCS_EWR_Plus

2. Unilever sells 1700 highly-polluting throwaway plastic sachets per second,

Greenpeace reveals. Greenpeace International. Accessed December 5, 2023.
https://www.greenpeace.org/international/press-release/63892/unilever-sells-1700-
highly-polluting-throwaway-plastic-sachets-per-second-greenpeace-reveals/

3. Unilever Uncovered: Unilever’s complicity in the plastics crisis and its power to
solve it by Greenpeace International - Issuu. Published November 28, 2023.
Accessed December 5, 2023.
https://issuu.com/greenpeaceinternational/docs/unilever-uncovered

4. Sachet Packaging, simplified by Nichrome. Accessed December 5, 2023.

https://www.nichrome.com/blog/sachet-packaging-simplified-by-nichrome/

5. Environmentally friendly single-portion packaging. V-Shapes. Accessed December

5, 2023. https://www.v-shapes.com/company/sustainable-eco-friendly-single-
serve-packaging/

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