Unilever rolls out direct dispatch

TYPICALLY, UNILEVER moves goods from factories to where they’re sold via distribution centres. 

There are a host of reasons why this model works, but Unilever says there are circumstances where the process can be made more efficient through ‘direct dispatch’. This is where we distribute straight from the factory to the customer.

Home care global supply chain strategy & long-term planning manager Michael O’Connor, says: “We’re increasingly implementing this model across our logistics network because it delivers a number of benefits.

“First, it’s quicker. The customer places an order and we deliver it straight to them, avoiding the need to load, unload and store the products in a separate DC.

It invariably reduces the distance our trucks travel, as we make one trip to the customer site rather than to the DC, then to the customer. “This saves fuel and, in turn, the associated greenhouse gas emissions as well as reducing touch points to eventually be more cost efficient.

“It is a win–win for us and our retailers.”

The viability of direct dispatch relies on sending full shipments of just one or two product lines from a single factory, so it suits Unilever’s largest customers. It suits the firm’s Home Care products as they tend to be bulkier. So, for example, a retail partner may order enough boxes or bottles of laundry detergent in one go to fill an entire truck.

The model is already in place to varying degrees across the globe.

In 2018, 8% of Unilever deliveries were sent via direct dispatch. This have doubled to 16% and the company is aiming for over 25% by 2026.

“This is about finding what works best for each customer and tailoring the solution accordingly, whether it’s direct dispatch or a traditional model,” adds Michael.

“We’re constantly evaluating more sites and routes all over the world and, where it makes sense, implementing at speed. Each one we add to the list is another step in our logistics operation becoming more efficient, productive and sustainable.”