Unilever: Boosting Productivity with Talent and Technology
AI, robotics and digital tools continue to transform manufacturing operations across global supply chains. But, while technology plays a growing role, it is the investment in people—particularly those on the factory floor—that is delivering the most consistent results.
That's the conclusion delivered by the World Economic Forum (WEF) and McKinsey, whose joint initiative, Frontline Talent of the Future, highlights how focusing on frontline workers gives businesses an edge in productivity and performance.
Four of Unilever’s factories—in Pouso Alegre (Brazil), Kilbourn (United States), Tianjin (China) and Poznan (Poland)—participated in the programme. These sites manufacture for key brands like Knorr and Hellmann’s and were part of pilot schemes aiming to link human capital investment with better operational results.
People-first strategies improve production metrics
At the centre of the initiative is the idea that human capability and well-being influence overall performance.
According to Richard Sharp, Chief HR Officer for Supply Chain at Unilever, the connection is straightforward: “At Unilever, we believe that, when you take care of people, they take care of the business. We are seeing a positive impact from the investment we are making in our colleagues in factories.”
Pilot schemes rolled out across the four Unilever factories and nine other participating sites showed that focusing on workforce development contributed to a 28% improvement in productivity as well as better health and safety outcomes.
Jennifer Han, Chief Product Supply Officer for Foods at Unilever, reinforces the value of enabling local leadership to make decisions: “We have given our factory leaders and local HR the flexibility to adjust and improve the solutions that fit their site’s unique needs and the autonomy to be proactive and reactive to local market movements.”
Each site adapted the approach to its own needs. At Kilbourn, the aim was to address stagnant output. In Tianjin, talent programmes supported rapid growth and digitalisation. Both saw measurable improvements.
From 2020 to 2024, across the four Unilever sites, three out of four factories recorded a 27% improvement in productivity metrics and a 41% reduction in waste. Overall Equipment Effectiveness (OEE)—the standard metric for factory efficiency—also improved by an average of 11%.
OEE combines factors like machine availability, performance and output quality to measure the true efficiency of manufacturing operations. All four sites saw gains in this key area.
Skills and flexibility boost competitiveness
Jennifer points to some particularly notable results at the Pouso Alegre factory, where a focus on upskilling included both technical and soft skills training.
She explains: “Its digital transformation strategy combines robust technical training with the enhancement of soft skills, creating a dynamic environment of innovation, collaboration and continuous growth that empowers our team to tackle digital challenges.”
The result was not only higher OEE scores but also better responsiveness across the supply chain. With more flexibility in production, the site could adapt to market needs more effectively.
This localised approach showed similar returns elsewhere. In Kilbourn, automation and process improvements led to a 16% rise in OEE, a 42% reduction in waste and a 60% drop in absenteeism from 2021 to 2024. In Tianjin, waste reduction generated estimated savings of €52,000 between 2021 and 2024. Poznan achieved a 27% drop in waste per tonne of product.
Importantly, technology was not the only factor behind these results.
Jennifer points out that people on the factory floor are often best placed to identify inefficiencies and implement solutions: “They are the ones who are best placed not only to flag where waste issues are occurring but also to come up with solutions."
Since 2019, Pouso Alegre alone has saved 18,000 kilotonnes of packing materials, ingredients and finished products from going to waste.
Engaged teams deliver long-term benefits
Training and workforce empowerment have also led to higher employee engagement, particularly where new technologies support better working conditions.
In Poznan, AI solutions have reduced time spent on repetitive tasks and allowed more focus on value-adding roles, contributing to a 79% increase in engagement between 2021 and 2024. Tianjin achieved a 98% engagement score in 2024.
In addition to staff satisfaction, there have been financial benefits. Pouso Alegre delivered project savings of over 160% through initiatives that rewarded staff for leading operational improvements.
But perhaps the clearest example of results driven by people-focused innovation comes from Kilbourn, Unilever’s largest condiments plant by production volume.
The site was named one of three best-in-class 'talent spotlight sites' by WEF and McKinsey. Its success came through building a working culture that supports ongoing optimisation, which not only lifted OEE but also slashed waste and absenteeism.
Richard concludes: “An engaged workforce empowered by technology can truly achieve remarkable results on the shop floor. It's only when teams and technology are working in harmony that we can achieve the optimised productivity we are aiming for."
