Amazon is one of Unilever’s Supply Chain most valued e-commerce retailers, and the two companies have been working closely together to create a more seamless and efficient supply chain. This collaboration aims to benefit both businesses by improving product availability, delivery speed, and reliability. With e-commerce playing an essential role in Unilever’s growth strategy, Amazon stands out as a key partner in ensuring that Unilever’s products are readily available to customers. The two companies are focused on improving their supply chain operations to enhance the customer experience while driving greater efficiencies in their logistics.
Unilever and Amazon’s collaboration in the Unilever’s Supply Chain has been recognized by Gartner, which named both companies as two of only four Unilever’s Supply Chain Masters. This prestigious title is awarded to companies with sustained excellence in supply chain performance. Their partnership is a prime example of how industry giants can work together to overcome challenges and identify new opportunities for growth and efficiency. Unilever is committed to supporting Amazon in providing customers with greater availability of Unilever products online, ensuring that products are delivered quickly and reliably.
As part of their ongoing efforts to streamline operations, Unilever’s Supply Chain and Amazon have focused on strengthening the relationship between their global supply chain teams. By working together to improve processes for shipping Unilever products to Amazon’s fulfillment centers, they can ensure products are consistently available for customers on Amazon.com. The ultimate goal is to make it easier for customers to find and enjoy Unilever’s range of products through the convenience of Amazon’s online platform.
Mark Sumner, Unilever’s Supply Chain Global Digital Commerce Customer Supply Chain Director, explains the importance of maintaining strong relationships with retailers like Amazon. He highlights how Amazon has pioneered new technology-driven business models to serve changing customer habits, which has become increasingly important in today’s digital marketplace. By working closely with Amazon, Unilever can ensure that its brands are effectively presented to consumers and available for purchase whenever they are needed.
Unilever’s Supply Chain Customer Collaboration and Kaizen Driving transforming Enhancements with Amazon
To improve performance in e-commerce, Unilever’s Supply Chain and Amazon have implemented a unique approach that incorporates the principles of Kaizen. Kaizen is a Japanese methodology focused on continuous improvement, and it has become a critical tool in optimizing supply chain operations. While Unilever has extensive experience in traditional retail, e-commerce presents new challenges that require innovative solutions. The scale of inventory and the emphasis on fast, reliable delivery create unique demands that require a different strategy than what is used in brick-and-mortar retail.
To address these challenges, Unilever’s Supply Chain and Amazon began applying the Kaizen methodology to improve supply chain performance. This approach has allowed both companies to identify inefficiencies, eliminate waste, and enhance their operations. Since 2022, Unilever’s Supply Chain and Amazon have hosted Kaizen workshops in various global locations, bringing together cross-functional teams to analyze and optimize the entire supply chain process.
During these workshops, teams from both companies collaborate to map out pain points in the supply chain and use data to improve operations. The goal is to align key actions to streamline and integrate their processes more closely, creating a more cohesive and efficient supply chain. These workshops have fostered strong relationships between Unilever and Amazon’s teams, with over 150 supply chain and business leaders participating across six global regions.
The results of the Kaizen workshops have been highly positive. Since the program began in July 2022, Unilever and Amazon have made significant improvements in key performance indicators (KPIs), solving over 100 pain points. For example, a Kaizen workshop in Australia in 2022 led to a 40% reduction in Unilever’s out-of-stock rate on Amazon. Similarly, a workshop in Egypt in 2023 improved Unilever’s order acceptance rate by 20%. In 2024, a Kaizen session in India resulted in a 35% increase in Unilever’s order fill rate and a 55% reduction in defects when delivering products to Amazon’s fulfillment centers.
These improvements have not only reduced supply chain costs for Unilever’s Supply Chain but also contributed to faster delivery speeds, improved packaging, and higher in-stock rates. All of these factors ultimately enhance the experience for Amazon customers, ensuring that they have access to the products they want when they need them. Unilever’s collaboration with Amazon has also led to more customer-centric product offerings, ensuring that the products available on Amazon meet the needs and expectations of shoppers.
One of the most notable changes resulting from the Kaizen workshops is the creation of a new internal dashboard at Unilever. This dashboard allows the company to share supply chain performance data across global teams, improving demand planning and ensuring better in-stock availability for Amazon customers. This tool has fostered greater alignment across Unilever’s supply chain strategy and helped ensure that products are available on Amazon’s platform when customers are ready to purchase them.
In addition to these larger changes, smaller shifts have also made a big impact. For instance, Unilever has modified the shipping packaging for certain products, allowing Amazon to use the original packaging without having to re-pack the products before sending them to customers. This seemingly small change has contributed to more efficient operations, as it reduces the need for extra handling and allows for faster delivery times.
The Kaizen methodology has played a crucial role in improving the supply chain for both Unilever and Amazon. By applying this approach to e-commerce, the companies have been able to address the unique challenges of digital retail, while also creating a more efficient, customer-focused supply chain. With a commitment to continuous improvement, Unilever and Amazon are well-positioned to tackle future challenges and seize new opportunities in the e-commerce space.
Looking ahead, the future of this collaboration promises even greater advancements in supply chain performance. By continuing to work together, Unilever’s Supply Chain and Amazon can leverage their collective expertise to drive further efficiencies, reduce costs, and improve the overall customer experience. As e-commerce continues to grow, the partnership between these two industry leaders will be essential in shaping the future of online retail and ensuring that customers have access to the products they want, when they want them.
In conclusion, the collaboration between Unilever and Amazon demonstrates the power of strong partnerships in the e-commerce space. By working together and applying innovative methodologies like Kaizen, the companies have made significant strides in improving their supply chain operations. As they continue to evolve and adapt to the changing landscape of digital retail, Unilever and Amazon are setting a new standard for efficiency, reliability, and customer satisfaction. Through their ongoing commitment to excellence, they are ensuring that the future of e-commerce is bright for both businesses and their customers.
