IBM > Case Studies > Radical transformation lets Unilever Europe focus on growth and winning in the marketplace

Radical transformation lets Unilever Europe focus on growth and winning in the marketplace

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Company Size
1,000+
Region
  • Europe
Country
  • Poland
  • United Kingdom
Product
  • IBM Global Technology Services
  • IBM Global Process Services
  • IBM WebSphere Business Modeler
  • IBM Content Manager
Tech Stack
  • IBM WebSphere
  • SAP ERP
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Digital Expertise
  • Productivity Improvements
Technology Category
  • Application Infrastructure & Middleware - Data Exchange & Integration
  • Platform as a Service (PaaS) - Connectivity Platforms
Applicable Industries
  • Consumer Goods
Applicable Functions
  • Discrete Manufacturing
  • Procurement
Use Cases
  • Inventory Management
  • Process Control & Optimization
  • Supply Chain Visibility
Services
  • Cloud Planning, Design & Implementation Services
  • Data Science Services
About The Customer
Unilever Europe is one of the world’s most recognized and respected brands, with annual revenues of more than EUR44 billion. The company has operations in about 100 countries on five continents. It manages more than 500 individual brands in 14 different categories and employs more than 167,000 people. Unilever Europe represents 32 percent of the Unilever global business and employs 32,000 staff. The company’s mission has always been to help people look good, feel good and add vitality to their lives. However, facing soft top-line revenues and an elevated cost structure, Unilever Europe needed to make dramatic operational changes.
The Challenge
Unilever Europe, a well-known consumer products giant, had expanded in a siloed fashion, by country and division. This resulted in a loose federation of business groups and geographies operating across 24 countries, all using multiple ERP systems. With so many different finance and accounting processes under three separate leadership teams, the result was a complex, inefficient organization that impeded growth. In 2005, Unilever Europe's leadership team made a strategic decision to integrate the company’s multiple business units into a single, unified Pan-European organization, but needed to implement the systems and framework to enable this goal. The diversity of cultures, policies and language across Europe further complicated the challenge, as did the varying levels of technology across the company’s business units, which ranged from advanced to outmoded paper-based systems.
The Solution
Unilever Europe and IBM formed a partnership in 2005 to create a centralized “One Unilever” finance organization. Built on a foundation of process innovation and advanced analytics, this highly transformational solution delivered enhanced quality, control and access to information for Unilever Europe and created a more flexible, adaptable operating model. IBM provided managed business process services on a three-tier delivery model from its facilities in Krakow, Poland; Braga, Portugal; Bangalore, India; and Manila, Philippines. IBM deployed tools to standardize and automate existing processes that were connected through a common workflow technology and delivered seamlessly and consistently across an established worldwide delivery infrastructure. Finance processes at Unilever Europe are now harmonized, enabling work to be easily shifted across global centers.
Operational Impact
  • New centralized “One Unilever” finance and accounting organization, resulting in improved efficiency finance processes
  • Standardized business process integrated across the enterprise using one common ERP across Europe
  • Enhanced transparency and controls over operations
  • Pan-European service management with greater visibility and access to high-quality information for decision making and continuous improvement
  • Greater focus on core competencies, including brand and growth initiatives
Quantitative Benefit
  • Significant cost and operating savings contributing to the EUR700 million annual savings of the One Unilever program

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