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Unit 35 P2 (Pass) International Business Studies Btec
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Unit 35 P2 (Pass) International Business Studies Btec
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Learning outcome 2: Understand the process of supply chainintegration.
Unit 35: supply chain and stock management
P2: Report
Tutor: R. Kutsoati
Student: Arno Vollebregt
Class: IBS 3 B
Date: 10-10-2017
1
, Introduction
For this report I need to explain how the supply chains for three different products have
been developed. The three different products I will choose for this report are Unilever’s
AXE deodorant, Doctors without Borders’ medicines and Sony’s PlayStation.
Unilever’s AXE deodorant
Producers and processors
Unilever’s AXE does not have its own factories; they buy their products from factories
that produce the deodorant for a certain price. They send their design and specific
ingredients they want to the factories. In this case the factory is the producer; the
producer is the person or the company that makes the product. So in this case the
factory is the one making the product. A processor is the machine making the product, if
the factory uses a certain machine to produce the product that is the processor. The
final product might have been produced by multiple processors, all the products that
have been produced need to be brought together and need to be produced into one and
the final product by another processor. After the product is finished it will be delivered to
a warehouse, from this warehouse the product is being distributed to wholesalers and
retailers. This is the place where customers can buy the deodorant.
Unilever spends 28 billion euros per year, with over 70.000 suppliers and source from
more than 100.000 small farmers. They buy 60% of materials globally. Unilever also
does business with more than 260 manufacturers. They use one or more of these
manufacturers to produce their deodorant. They do business with all types of
manufacturers and all of these products come together in a Unilever warehouse from
where the products are being sold and distributed. With this method Unilever does not
take any risk with production; if one factory or supplier stopped working they have a lot
of other manufacturers and suppliers who can produce the same products.
Suppliers
At Unilever, they have ambitious plans to grow their business while reducing their overall
environmental footprint and increasing their positive social impact. Unilever's ambitious
growth agenda means that across the 190 countries in which they sell their products,
their Procurement teams are purchasing from a worldwide supplier network. Their
suppliers' materials and services are an integral part of their commercial operations,
ensuring their sites and factories in more than 100 countries are capable of
manufacturing, marketing and continually improving the thousands of unique items they
2
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