Unilever implemented SAP ERP systems and SAP HANA across its operations to unify business processes and maximize product availability. It transitioned from 250 ERP systems to four standardized SAP instances. SAP HANA accelerated analytics and transaction processing. Implementing SAP CO-PA reduced month-end closes from three to one day. Additional SAP modules like cash forecasting and cost planning further optimized operations and decision making. Unilever's systems consolidation and use of in-memory computing supports its global growth strategy through real-time insights and improved supply chain management.

1. UNILEVER’S PUSH TOWARD UNIFIED GLOBAL SYSTEMS
CASE STUDY
BY
JAIN JAMES , PRINSON K PRINCE

2. SUMMARY OF THE CASE STUDY
Unilever is one of the most famous reputed firm, which is globally covered all over the
countries. Unilever have cooperation with a company Proctor Gamble and Nestle (PGN). In
order to meet with some of the products Unilever focuses on 14 brands, each netting more
than 1 billion annually including more products; personnel care brands, deodorant and such
conditioner brands and more over top sellers they include ice – cream brands, best food
products, and soup, seasoning, and tea brands Lipton and Knorr. Altogether, the Anglo –
Dutch multinational boasts over 400 brands, sell its products in over 190 countries, and
employs more than 17, 5000 people worldwide.
Unilever is organised as the two separate holding company: Unilever PLC (Public Limited
Company), headquartered in London, United Kingdom, and Unilever N.V., headquartered in
Rotterdam, The Netherlands. The main aim of the firm is to have a single economic entity to
operate the two legal divisions nearly as possible. The Unilever Group – with unity of
management, operations purpose, mission.
In order to grow its business in developing and emerging markets, Unilever needed to unify
its core business processes, including supply chain management. Standardized processes were
essential to effectively manage volatile prices and changing commodity supplies. This was
not feasible prior to 2007. Almost every business in each of the more than 190 countries in
which Unilever operated functioned as an independent division. Approximately 30000
transactions per minute including every order received, invoice issued, material produced,
and product shipped were processed through 250 different enterprises resource planning
(ERP) SYSTEMS.
In order to run the campiness worldwide business on ERP systems, every transaction for each
order it receives, material it produces, item it ships and invoice that issues runs through
Unilever’s backbone ERP systems. Trying to run a global business that was doubling its
transaction volume with 250 systems proved too challenging. In order to add layers of IT
infrastructure to prepare for rapid business growth. Unilever’s globalisation strategy involved
the exact opposite action. For consolidating and simplifying its technology platform so that it
would support the company operating as single global entity. Unilever transitioned to run its

3. worldwide business on only four instances of SAP ERP, with the ultimate goal for managing
as one global platform by 2015.
With transactions slated to reach the 60000 per minute range, Unilever was still investigating
additional tools to increase transaction processing speed. To remain a leader in modern
demand – driven supply chain management, Unilever began adding SAP HANA (High –
performance Analytic Appliance) software to some of its key SAP ERP applications at the
end of 2012. HANA is an in-memory date platform that is deployable as an on-premise
appliance, or in the cloud. It is a very well suited for performing real-time analytics and
processing extremely large numbers of transactions very rapidly.
One of Unilever’s first project was implementing SAP CO-PA (Controlling – Profitability
Analysis) Accelerator powered by SAP HANA. The enhanced financial analysis software
reduced the number of days to produce the month – end close from three to just one. This
experience was valuable for Unilever on several levels. It allows the company to start with a
single critical business process that could easily be rolled back into a traditional database if
necessary, gain experience, and lay the ground-work for future HANA implementations. The
success of this project and its enthusiastic embrace by end users convinced Unilever that
other business process could indeed benefit from the addition of the SAP HANA in-memory
computing platform.
Unilever’s Enterprise Data Warehouse (EDW) system extracts, transforms, and integrates
ERP transaction data with external data for use in reporting and data analysis. The next target
of the SAP HANA initiative was to accelerate, simplify, and harmonize all ERP transaction
systems so that the data being fed into its global EDW was of the highest quality possible.
Valuable business insights depend on real–time analysis of accurate data. The profitability
analysis accelerator analyses reams of financial data and outputs valuable statistics about cost
and profit drivers. By mid-2013, the SAP CO-PA Accelerator had been added to all four
regional ERP centres over a 16week timeframe and was being managed as a single global
platform.
SAP Cash Forecasting was added to SAP ERP Financials to minimize liquidity risk and
maximise the use of working capital and cash. Product Cost Planning (CO-PC-PCP) was
incorporated to help Unilever plan the costs for materials independently from orders; set
prices for materials, operations, production lines and processes; analyse the costs
manufacture materials, and assess product profitability. The time to analyse the

4. approximately 150 million records produced each month was halved, and product cost
forecasts could be generated in 30 seconds, down from 7min.
On the macro level, the SAP HANA initiative transformed Unilever’s attitude towards IT.
Until HANA, IT pushed solutions to functions in need of modernization. Now, optimized
functions pinpoint business opportunities and stakeholders ripe for HANA solutions.
Unilever believes this swing from push to pull is a driver for innovation and a growth agenda.
Unilever wanted to maximise product availability on store shelves during new product
launches and promotional campaigns. Since trade promotion processes drive a significant
portion of its sales, in order to enhance the speed and efficiently with which they could be
planned, budgeted, and executed and in how stock was allocated. Earlier Unilever used a
process in which stock was sequentially assigned to orders as they were received. There was
no mechanism for assigning to orders as they received.
There was no mechanism for assigning limited stock between customers running a promotion
and those who were not. Consolidation of its ERP platforms and the transactions and
processing speed of the HANA platform are the keys to improved performance, reporting
scalability that will enable Unilever to full fill its ambitious growth, social impact and
environmental problem.

5. PROBLEMS
 Unilever need to unify its core business process, including supply chain management.
 Unilever wanted to maximize product availability on store shelves during new
product launches and promotional campaigns.
SOLUTIONS
 Use ERP system which helps to run a global business that was doubling its
transaction.
 Unilever began adding SAP HANA (High Performance Analytical Appliance). It is
very well suited for performing real time analytics if introduce SAP CO-P (controlling
– profitability analysis) which helps for the reduction of number of days of
production.
 If add SAP cash forecast of they can minimize liquidity risk and maximise the use
working capital and cash.

6. CASE QUESTIONS
1. What the management problems typical of global systems was Unilever experiencing?
What management, organization and technology factors were responsible for those
problems?
Unilever need to unify its core business processes including supply chain management and to
maximize product availability on store shelves they have to adopt ERP systems SAP, HANA
if, it is not adapting these technologies they will not get the ability to input raw materials cost
and quickly calculate product price. No any improved and understanding of the supply chain
for the manager decision making and they cannot able to performing real time analysis.
2. How did Unilever’s new systems and use of SAP HANA supports its business
strategy? How effective was the solution chosen by the company?
Unilever began adding SAP HANA software to some of its keys SAP ERP applications at the
end of 2012. HANA is an in-memory data platform that is deployable as an on-premise
appliance, or in the cloud. HANA accelerated trade promotion management tools different
inventory maximum scenarios and it is very well suited for performing real time analytics and
processing extremely large numbers of transactions very rapidly.
3. How did Unilever’s new system improve operations and management decision
making?
Production cost analysis confirmed for Unilever that HANA’s ability to accelerate business
processes was well worth the investment, substantially improving real-time decision making.
The second tangible benefit was the ability to input raw material cost and quickly calculate
product price. For understanding its margins – the percent profit after all costs have been
deducted – enabled Unilever to analyse ways to improve them. These factors make
improvement in operations and management decision making.
4. What influence does the global business environment have on firms like Unilever and
how does that affect its choice of system?
Consolidation of ERP platform and the transaction and processing speed of the HANA
platform are the keys to improved performance, reporting to fulfil its ambitious growth,
social impact and environmental goals. The global business environment has a firm like this
other company can also follow this and they can achieve great success in global business

7. environment this will help the developing country to become to become developed country
and also it helps to increase global economy of the business world.

8. BY,
JAIN JAMES, PRINSON K PRINCE