Context

DemandDrivenUnilever(DDU)

Supply is unreliableand complain of plan changes

Lead-timesare increasing

Service targetsare harder to hit

MOQ’s are increasing

Capacity isconstrained

Planners arefirefighting

• Increasingportfoliocomplexity

• Globalmanufacturing&distribution

• Increasingdemandvolatility

• Globalmaterialsourcing

• Shorteningcustomertolerancetime

• Morecompetitivemarketplace

NorthAmericaNetwork

Canada

East

Canada

Mid

USMid

USEast

West

• NorthAmericanetworkconsistedofsameSKUinmultipleDC’ssuppliedfrommultiplefactories

• DespiteinvestmentinDemandsensingandinventoryoptimisation tools,resultshadstagnated

• S&OPismanagedinSAPAPOwhereoptimisers canbeutilised tomanagesupplyconstraints

DDMRPInitialScope

Canada

East

Canada

Mid

USMid

USEast

West

• FinishedgoodsinventorybuffersplacedatDC’s

• Component(rawandPackaging)placedatfactory

• DuetosupplynetworkcomplexityasolutionwhichenabledDDMRP&MRPtoco-existwasrequired

Results

NorthAmerica

70%

74%

78%

82%

86%

90%

94%

98%

$5,000

$7,000

$9,000

$11,000

$13,000

$15,000

$17,000

$19,000

$21,000

$23,000

$25,000

Inventory Service

DDMRPGoLive

NoChangetoMOQ

MaintainedFGInventory

ImprovedService–

RedtoGreen

38daysLTReduction

NoImpacttochangeover

NoImpacttoNFG

Frozenperiodfrom42to7days

Canada

DDMRPGoLive

50%MOQReduction

50%FGINVReduction

41dayLTReduction

NoImpactto

changeoverNoImpacttoNFG

MaintainedHighService

Frozenperiodfrom42to7days

40%45%50%55%60%65%70%75%80%85%90%95%100%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

FGInventory Service

Factory(parts)buffers

-1,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,0008,000,0009,000,00010,000,000

JAN FEB MARAPRMAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MARAPRMAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MARAPRMAY JUN JUL AUG

2012 2013 2014

PACK ROH TotalValueUSD Linear(TotalValueUSD)

-

5.0

10.0

15.0

20.0

25.0

30.0

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG

2012 2013 2014

PACK ROH TotalDI Linear(TotalDI)

• Manyassumethatbufferingoncomponentswillalwaysincreaseinventory

• Thisisnottrue,typicallyinventoryisheldoncomponentsassafetystockand/orexcessstock

• DDMRPprovidedacontrolledstockingmethodologyeliminatingexcessinventories