How Unilever's Digital System Sharpens the Supply Chain
Unilever is rethinking how its global supply chain operates.
A digital platform called the Unilever Manufacturing System (UMS) is at the centre of a transformation across 124 factories worldwide. The goal is direct: reduce waste, make production more agile and support growth using data and automation.
UMS builds on the World Class Manufacturing (WCM) model that Unilever began rolling out in 2013. While WCM focused on lean operations and continuous improvement, UMS adds digital capability. Factories are now using smart tools to track performance, manage equipment and respond to changing customer demand — all in real time.
The numbers are clear. Unilever reports a 3% increase in Overall Equipment Effectiveness (OEE), 5% higher labour productivity and an 8% drop in costs across the network. These outcomes aren’t just operational benefits — they underpin the company’s ability to grow.
“UMS gives us a high degree of agility to respond to fluctuations in demand,” says Guseva Lyubov, Unilever’s Global ManEx Capabilities Manager. “And the savings it’s delivering are critical to remaining competitive as a production site.”
From detergent to ice cream: How UMS is used on the ground
Each Unilever site adapts UMS to its own products and markets.
In Brazil, the Indaiatuba factory, which makes Home Care brands like Omo and Comfort, uses UMS to support fast, flexible production. It’s recognised by the World Economic Forum as a "Lighthouse" site, a label for manufacturing leaders in advanced digital tools.
In 2024, Indaiatuba raised its capacity by 20% and saved nearly €3m (US$3.3m), all while posting the highest OEE across the company for a second year in a row.
The strategy isn’t just about volume. In Germany, at the Heilbronn site where Knorr food products are made, UMS has helped cut waste. The team identified inefficient packaging that led to rejected products.
Now, with rework machines and better tracking, food that’s still sealed is salvaged and packaging gets recycled. That change led to a 55% cut in food waste in 2024, saving €1.24m (US$1.3m).
Across the Atlantic, the Sikeston factory in Missouri - Unilever’s biggest ice cream plant - has made similar gains. In 2023, it already had low raw material waste at 2.8%. In 2024, that dropped further to 1.9%, marking a 32.5% improvement and contributing nearly a third of Unilever’s total global waste savings. The team focused on equipment performance and flagged issues early to keep output tight and efficient.
In the Philippines, Cavite’s personal care site makes brands like Sunsilk and Dove. By combining small process adjustments with workforce training, the factory lifted its OEE from 51% to 66% and cut €250,000 (US$278,668) from annual costs.
A supply chain that learns and adapts
UMS isn’t a plug-in tool. It’s a custom-built platform, developed jointly by Unilever’s digital teams and supply chain experts. It brings together real-time data, automated systems and digital twins — virtual models of production lines that let teams test out changes before making them live. That means sites can simulate how a shift will affect output or waste before anything happens on the floor.
UMS helps Unilever sites stay aligned with broader goals, whether that’s meeting a demand spike, hitting sustainability targets or training staff. More than 23,000 people have now been trained in using the system.
For Renato Miatello, Unilever’s Chief Product Supply Officer for Home Care, the impact is clear.
“Training over 23,000 factory colleagues in digital skills and ownership across all functions and capabilities has been essential in the roll-out,” he says.
Renato adds: “UMS is key to building a lean, agile supply chain and it is an essential catalyst for landing our GAP 2030 strategy – delivering faster growth through driving productivity and simplicity. In short, it’s giving us a competitive edge.”
Future-proofing factories with data and IoT
UMS is always evolving. As factories adapt and improve, new features are added. One key step now is the rollout of Internet of Things (IoT) sensors — small devices that collect live performance data from machines. These allow for predictive maintenance, spotting problems before they affect output.
The system also helps Unilever meet its environmental targets. Cutting waste, improving energy use and recovering resources like packaging all support the company's responsible manufacturing approach.
The idea isn’t just to make operations leaner. It’s to make the supply chain smarter and better able to handle whatever comes next — whether that’s consumer shifts, raw material pressures or new product lines.
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