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OUTSOURCING IN UNILEVER
UNILEVER AND THE INDUSTRY
• Fast Moving Consumer Goods Company (FMCG)
• €51bn global turnover
• Products sold in 190 countries
• Foods, homecare and personal care
• 400 brands
• Competition - Proctor and Gamble (P&G), Nestle
http://www.unilever.co.uk/Images/6550_Unilever_MBY_24ppMainBro_AW_v15_tcm28-365245.pdf
SERVICES OUTSOURCED BY UNILEVER TYPICALLY WITHIN THE INDUSTRY
• Accenture – Human Resources (2006)
• Deloitte – Facilitating the sales of two shared services (2009)
• IBM – Finance and procurement outsourcing deal (Jan 2013)
• Capgemini – Finance and accounting service partner. (Jan 2013)
http://www.deloitte.com/view/en_US/us/Insights/Browse-by-Content-Type/Case-Studies/456a12f0c1798210VgnVCM200000bb42f00aRCRD.htmhttp://outsourcemagazine.co.uk/unilever-signs-up-accenture-for-hro/http://www.supplymanagement.com/news/2012/unilever-in-108-million-outsourcing-deal-with-ibm/
Partnership outsourcing approach
Core activity.Do not outsource!
Transactional outsourcing Decision based on financial considerations
Low High
Organisational Expertise
Pot
entia
l val
ue t
o th
e or
gani
satio
n
Lo
w
Hig
h
HOW CAN OUTSOURCING DECISIONS BE IMPROVED IN THE SUPPLY CHAIN?
• Unilever’s market value and sales revenue lower than the competition
• Accenture and P&G Win ‘Most Innovative’ Outsourcing Excellence Award For Commercial Services Collaboration
• Unilever may need to focus on more innovative collaborations with their outsourcing partners
• Improve their integration and relationships
http://newsroom.accenture.com/news/accenture-and-p-g-win-most-innovative-outsourcing-excellence-award-for-commercial-services-collaboration.htmhttp://www.mbaskool.com/fun-corner/top-brand-lists/7769-top-10-fmcg-companies-in-the-world-2013.html?start=8
http://www.sharedserviceslink.com/news/unilever-signs-100-million-outsourcing-deal-with-capgemini
RISKS?
• Unilever believe that outsourcing to service providers results in lower risk
• Proven track record
• Innovative technology and processes
• Understand the challenges of change management
• Expertise in large scale business transformations
http://public.dhe.ibm.com/common/ssi/ecm/en/gtc03035usen/GTC03035USEN.PDF
ANY QUESTIONS?