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Case Study

SUPPLY CHAIN MANAGEMENT

Unilever builds healthy market presence in Puerto Rico by streamlining supply chain

Consumer

Challenge

On-time delivery to customers High employee overtime costs Inadequate inventory and staffing controls Inefficient transportation system

With a population of more than 4 million, Puerto Rico is an attractive market for consumer products companies such as Unilever, a leading global provider of products that meet everyday needs for nutrition, hygiene and personal care. From Hellman’s mayonnaise and Skippy peanut butter to Axe body spray and Dove detergent, Unilever brands have been popular with Puerto Ricans for years. However, serving this densely populated island that’s approximately 1,000 miles south of Florida presents unique supply chain challenges given its location and limited warehouse capacity. Developing a reliable, streamlined transportation, warehousing and retail replenishment strategy was essential to enhancing customer service and efficiency in the market.

Solution

Improved transportation processes Enhanced integration of logistics, sales and marketing Deployed advanced warehouse management system Improved employee hiring and training programs

The Challenge

On-time delivery to customers was a key challenge for Unilever for multiple reasons. First, shipping times are typically five to seven days because 90 percent of Unilever’s products come from the mainland United States. Second, additional time is required to ensure that products are properly entered into inventory and transported to the right store locations once on the island. So, the company was often not meeting immediate customer demand for replenishment. Unilever also struggled to balance inbound and outbound shipments at the port. When product arrived at the port, ineffective transportation systems caused delays in picking up containers, which created disruptions throughout the supply chain. It also added costs because of demurrage and...