GLOBAL SUPPLY CHAIN MANAGEMENT OF UNILEVER UK. Management Term Paper (Term Paper Sample)

GLOBAL SUPPLY CHAIN MANAGEMENT OF UNILEVER UK
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Global Supply Chain Management of Unilever UK
Background
Supply chain management is a fundamental component of business operations. The supply chain is even more critical for companies with global operations due to the complex nature of their business operations (Trkman, Budler & Groznik 2015). Since a supply chain is an excellent determinant of competitiveness and customer satisfaction, its management is crucial for multinational companies (Stevens & Johnson 2016). Besides, supply chain management leads to efficiency and speed in the delivery of products to the end-user at a low cost (Trkman, Budler & Groznik 2015). This report hence aims at understanding the role of supply chain management to a multinational with a particular focus on Unilever UK, which specializes in selling fast-moving consumer goods in nutrition, home hygiene, and personal care products market. The company has been running operations in the UK for over 100 years with global headquarters in London and Rotterdam (Unilever.com 2019a). Through its diverse brands, it pays emphasis on the need for its customers to get the maximum value out of their lives. Putting the magnitude of Unilever UK's supply chain into perspective, the corporation's annual sales in the UK total to over 2 billion Euros (Unilever.com 2019a). Maintaining such numbers calls for trust between the company and its customers - fundamentally demanding for effective supply chain management (Mangan & Lalwani 2016). By focusing on Unilever UK as a case study, the report will seek to understand the nature and challenges of the firm’s supply chain. Based on the findings, the report will give recommendations for Unilever UK’s supply chain improvement.
Analysis of Unilever UK’s International Business Strategy
Unilever’s supply chain employs 100,000 employees and over 1.5 million farmers globally. Besides, the company’s logistics network involves over 70,000 suppliers and the movement of goods over an estimated 1.5 billion Km annually (Unilever.com 2019c). As a leading global of fast-moving consumer goods, Unilever UK has paid a greater focus on its global strategy over localized strategies. Equally, the company’s international business strategy involves thinking and acting globally. This means that there is little responsive adaptation based on local conditions. Besides, the company sells the same products everywhere, making it easy for global customers to identify with the products. In some cases, however, the company makes minor adaptations to fit local tastes and preferences. The London and Rotterdam headquarters is crucial in building Unilever's brands and coordinates its activities globally. Uniformity of products is an essential strategy for creating a global brand image and reputation (Rampling 2018). With over 400 brands, mainly in the health and wellbeing sectors, Unilever’s products are used by an estimated two billion people daily. Despite such tremendous growth in its product portfolio, the company has remained conscious of sustainable growth. Sustainability in business is integral in ensuring the available resources are not strained (Castiglia 2019).