Case Studies Unilever's Demand Sensing and Inventory Optimisation with Terra Technology

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	Unilever's Demand Sensing and Inventory Optimisation with Terra Technology

Unilever's Demand Sensing and Inventory Optimisation with Terra Technology

Technology Category	Analytics & Modeling - Predictive Analytics Application Infrastructure & Middleware - Data Exchange & Integration Functional Applications - Inventory Management Systems
Applicable Industries	Consumer Goods Retail
Use Cases	Inventory Management Predictive Maintenance Supply Chain Visibility
Services	Software Design & Engineering Services System Integration
Challenge	Unilever faced significant challenges in managing its supply chain due to increasing volatility in the market. The company identified five key global trends impacting its operations: multiple channels, sustainability, economic volatility, customer intimacy, and digital savviness. To address these challenges, Unilever needed a more agile supply chain that could handle the growing volatility without resorting to expensive inventory increases. The company aimed to improve its short-term forecast accuracy and reduce working capital tied up in inventory. Read More
About Customer	Unilever is one of the largest FMCG manufacturers globally, with a presence in over 190 countries and a portfolio of more than 400 brands. The company serves 2 billion consumers daily and primarily uses SAP systems for its operations. Unilever's demand planning is maintained within SAP Advanced Planner and Optimizer (APO). The company has a significant global reach and is committed to sustainability and innovation in its supply chain processes. Read More
Solution	Unilever partnered with Terra Technology to implement demand sensing and inventory optimisation tools. Terra Technology's Enterprise Demand Sensing Platform automates and synchronises various demand signals to improve short-term forecast accuracy. The Multi-Enterprise Inventory Optimisation platform provides optimal inventory targets across the supply chain, balancing cost and service while minimising waste. The implementation required senior management buy-in and a dedicated project team. The roll-out was phased, starting with more mature areas and gradually building confidence in the system's outputs. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Predictive Analytics

Application Infrastructure & Middleware - Data Exchange & Integration

Functional Applications - Inventory Management Systems

Applicable Industries

Consumer Goods

Retail

Use Cases

Inventory Management

Predictive Maintenance

Supply Chain Visibility

Services

Software Design & Engineering Services

System Integration

Challenge

Unilever faced significant challenges in managing its supply chain due to increasing volatility in the market. The company identified five key global trends impacting its operations: multiple channels, sustainability, economic volatility, customer intimacy, and digital savviness. To address these challenges, Unilever needed a more agile supply chain that could handle the growing volatility without resorting to expensive inventory increases. The company aimed to improve its short-term forecast accuracy and reduce working capital tied up in inventory.

About Customer

Unilever is one of the largest FMCG manufacturers globally, with a presence in over 190 countries and a portfolio of more than 400 brands. The company serves 2 billion consumers daily and primarily uses SAP systems for its operations. Unilever's demand planning is maintained within SAP Advanced Planner and Optimizer (APO). The company has a significant global reach and is committed to sustainability and innovation in its supply chain processes.

Solution

Unilever partnered with Terra Technology to implement demand sensing and inventory optimisation tools. Terra Technology's Enterprise Demand Sensing Platform automates and synchronises various demand signals to improve short-term forecast accuracy. The Multi-Enterprise Inventory Optimisation platform provides optimal inventory targets across the supply chain, balancing cost and service while minimising waste. The implementation required senior management buy-in and a dedicated project team. The roll-out was phased, starting with more mature areas and gradually building confidence in the system's outputs.

Impact #1	Unilever realised significant improvements in forecast accuracy, reducing error and bias within its critical short-term horizon.
Impact #2	The company was able to reduce safety stock levels over time, leading to a 35% reduction in inventory in Europe.
Impact #3	Improved forecast accuracy and inventory reduction contributed to cost and waste reductions, aligning with Unilever's sustainability goals.

Impact #1

Unilever realised significant improvements in forecast accuracy, reducing error and bias within its critical short-term horizon.

Impact #2

The company was able to reduce safety stock levels over time, leading to a 35% reduction in inventory in Europe.

Impact #3

Improved forecast accuracy and inventory reduction contributed to cost and waste reductions, aligning with Unilever's sustainability goals.

Benefit #1	MAPE improved by 22% on a seven-day horizon through the use of Demand Sensing.
Benefit #2	Unilever was able to cut inventory in Europe by 35%.

Benefit #1

MAPE improved by 22% on a seven-day horizon through the use of Demand Sensing.

Benefit #2

Unilever was able to cut inventory in Europe by 35%.

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Overview

Unilever's Demand Sensing and Inventory Optimisation with Terra Technology

Operational Impact

Quantitative Benefit