Operating framework launch 5 may 2011

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Live Service. Deliver Sustainable, Profitable Growth.

ONE Unilever Supply ChainPlaying to Win

Our New Operating Framework –Embedding new ways of working

Live Superior Service. Deliver Sustainable, Profitable Growth.

Live Meeting, Pier Luigi SigismondiThursday May 5th 2011

Safety Moments ….

Safety incidents happen when people don’t assess Risk

become Complacentdeliberately Behave against standing procedures

• Be role models and behave as you expect others do• Have the courage to do the right thing and demand the right behaviour• Start now your first meeting of the day with a meaningful safety moment, about experiences or/and performance

When did you last watch? When did you last check?When did you last look for?

Supply Chain Creating Value

Fit to Compete

From our last Feb Virtual Event …

Cost DrivenSupply Chain

Building Foundations

2009 2010/11 2011

Lean & Agile Value Chain

PLAY TO WIN

Inherent Challenges …

vs

ANCHOR brands

There is only There is only ONE OPTIONONE OPTION ……

6‐10% among Peers

vs

Commodities Driven Cost

14‐16% Inflation

+

vs

Low Growth with High Margin

Growth vsMargin MIX

High Growth with Lower Margin

+ANCHOR Brands?

€1bn+ Power brands

Become the BEST

Responsive, Demand DrivenValue Chain

Becoming the BEST …

2009 2010/11 2011 2012/13


Fit to Compete




PLAY TO WIN


Fit to Compete




PLAY TO WIN

CategoriesCategories

FoodsFoods

Personal CarePersonal Care

Homecare & Oral

Homecare & Oral

2 Regions Aligned

AACAAC

EuropeEurope

AmericasAmericas

RegionRegion

CapabilitiesCapabilities

NetworkNetwork

Pack Materials

Pack Materials

Raw Materials

Raw Materials

Global OnlyAAC Only Europe OnlyAligned

KEY:

2009 One SC Structure

CustomerService ExCustomerService Ex


Corporate FunctionsCorporate Functions

Capabilities / Functions


AACAAC EuropeEurope

Dressings, SCC & FS

Dressings, SCC & FS

Capabilities Capabilities

Ice CreamIce Cream

Savoury & BeveragesSavoury & Beverages

Homecare & Oral

Homecare & Oral


FoodsFoods

Ice Cream BeveragesIce Cream Beverages

HomecareHomecare


Dressings, SCC

Dressings, SCC

Ice CreamIce Cream


HPCHPC

LogisticsLogistics

AmericasAmericas


Customer Service / Logistics


MCOsMCOs

ProcurementProcurement RegionsRegions

CategoriesCategories

FoodsFoods


Homecare & Oral

Homecare & Oral

2 Regions Aligned

AACAAC

EuropeEurope

AmericasAmericas

RegionRegion


NetworkNetwork

Indirects Procure-

ment

Indirects Procure-

ment

Pack Materials

Pack Materials

Raw Materials

Raw Materials

CommoditiesCommodities

Global OnlyAAC Only Europe OnlyAligned

KEY:

CustomerService ExCustomerService Ex


Corporate FunctionsCorporate Functions

Quality Ex

Quality Ex

Security & SafetySecurity & Safety

SC Strategies&

Sustainability

SC Strategies&

Sustainability



AARAAR EuropeEurope

Dressings, SCC & FS

Dressings, SCC & FS

Capabilities Capabilities

Ice CreamIce Cream


Homecare & Oral

Homecare & Oral


FoodsFoods

Ice Cream BeveragesIce Cream Beverages

HomecareHomecare


Dressings, SCC

Dressings, SCC

Ice CreamIce Cream


HPCHPC

LogisticsLogistics

AmericasAmericas




MCOsMCOs

LogisticsLogistics

SC MCOsSC MCOs

LogisticsLogistics

SC MCOsSC MCOs SC MCOsSC MCOs

Personal Care

Personal Care

Homecare & Oral

Homecare & Oral

OperationsOperations Dressings, SCC & FS

Dressings, SCC & FS

Ice CreamIce Cream


LogisticsLogistics

Dressings, SCC & FS

Dressings, SCC & FS

Ice CreamIce Cream


Homecare & Oral

Homecare & Oral

Personal Care

Personal Care

ProcurementProcurement RegionsRegions

Ice CreamIce Cream

Homecare & Oral

Homecare & Oral

SCC / DrSCC / Dr

DeosDeos

Skin & HairSkin & Hair

BeveragesBeverages

SavourySavoury

2011 One SC Structure

UEnSUEnS

ManexManex

Latest Changes towards ONE SC team …

•MCO SCs all reporting to Regional SC SVPs• CEE MCO reporting into SVP SC Europe• Re‐Organization: AAC to AAR• CSE Organisation de‐layered: ONE Group CSE

Introducing the new Framework…

http://inside.unilever.com/supplychain/Pages/scOperatingFrameworhttp://inside.unilever.com/supplychain/Pages/scOperatingFramework.aspxk.aspx

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ONE SC Key Building Blocks…

AdvancedCapabilities

BusinessPartners

Business Performance

Techn &Product

Leadership

New Ways of Working (I) …

FASTER

UEnS operating model implemented in ~ 6 months

Cold Infusing Tea launch in less than 24 weeks

Magnum launch in NA in 16 months

Injection mould built within 10 weeks for Project Organics

Jelly bouillon rolled out to 30 countries

New Ways of Working (II) …

Aero Plant repeatable models – Pilot & Repeat

E‐catalogues on EPS – Accessible to all engineers

Common Factory Scorecard everywhere

Procurement & ES – No PO, No Pay

SIMPLER

New Ways of Working (III) …

USCC proactive engagement with MCO

Partner to Win with suppliers – 230 new ideas!

Sara Lee Integration

OSA roll‐out in 20 countries consistently with OSA champions

Logistics collaboration across 3 Regions

BETTER TEAMWORK

ONE SC performs to its Best when …

New Ways of Working

AAligned with Visible 3+1 to deliver business P&L

DDesigning once and deploying everywhere

DDriving Simplification to eliminate Waste

VValuing Teamwork and Continuous Improvement

AActing interdependently as ONE with Trust

LLeveraging Scale to deliver Competitive advantages

UUndertaking calculated Risks with Speed to market

EEmbedding the UL SOL with Passion to Win

AA

DD

DD

VV

AA

LL

UU

EE

Become the Absolute BEST …

LetLet’’s prove to the world we s prove to the world we can play as the Best team !can play as the Best team !

Start Leading the Change from Now …

Be the ChangeChange that you want to see around youaround you

… with Passion to win !

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Live Service. Deliver Sustainable, Profitable Growth.

ONE Unilever Supply ChainPlaying to Win

Embedding new ways of working –Leading the changes

Live Superior Service. Deliver Sustainable, Profitable Growth.

Live Meeting, Nick DaltonThursday May 5th 2011

What’s Next …

Communicate

Monthly SC Leaders “Chat Rooms”

Reinforce

Apr 4th SC Leaders Forum

May 5thMega Launch

Oct 11th

SC MegaVirtual Event

Team Cascade ‐Country, Function, Category

6 Steps Change Process

Deploy

SC Leaders Chat Rooms …

Live Meeting every 3‐4 weeks with our SC Leaders

Personalised SC Leaders Website for sharing ideas, asking questions and building virtual network

Opening on Jun 1stJun 1st with Adam Mallalieu speaking about Safety & Security (9am and 3pm London time)

Next on the Chat Rooms …

Adam Mallalieu on Safety & Security

Nicky Roube on Quality

Geoff Fulford on CSE

Dhaval Buch/Alok Joshi on UEnS

Sergio Sassi on Manex

Neil Humphrey on Responsiveness

Simon M Smith on Logistics

Marc Engel on Procurement

Jun 1

Jun 20

Jul 19

Aug 2

Aug 30

Sep 20

Nov 16

Dec 8

What you can do now …

In your Teams, start the 6 Steps6 Steps to bring the new

Operating Framework alive!

Step 1 – Understand how you fit in …

Go through the new ONE SC Operating Framework

Making the Connection

What will this mean for me and my team

How will it help us achieve our goals

http://inside.unilever.com/supplychain/Pages/scOperatingFramework.aspx

Step 2 – Reasons to Believe …

Why will this time be different …

List the “Reasons to Believe”

Why can the “New ways of working”make a difference …

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Step 3 – Stop, Start, Continue …

Brainstorm in Teams …

What should we STOP doing

What should we CONTINUE improving

What should we START doing

Step 4 – Make your own 3 wishes!

Identify “3 Wishes” – Actions you want to see,that if they happen, will guarantee our success …

Step 5 – Moving into Action

Agree your individual and team actions:

What do we need to do Differently as a team?

Who else do we need to talk with now ? What interfaces must we improve?

Step 6 - Continuous Improvement

Please feedback your “3 wishes” and Actions onthe space created for this in the Inside.SChttp://inside.unilever.com/supplychain/Pages/Offthepageandintoaction.aspx

Pulse Check

Monitor the results regularly to ensure CHANGESare taking place as per your Wish list ….

The Floor is all yours …

SCLT ready to answer to your questions:•Pier Luigi Sigismondi – Chief SC Officer

•Sergio Sassi – SVP SC Americas•Dhaval Buch – SVP SC AAR

•Neil Humphrey – SVP SC Europe•Marc Engel – Chief Procurement Officer

•Hans Droge – SVP R&D•Nick Dalton – VP SC HR

•Robert Etman – SVP SC Finance

Retail

Operating framework launch 5 may 2011