Unilever: Using new Digital Tools to Boost Productivity

Unilever is reshaping how its global factories work with a digital model designed to streamline production, reduce waste and boost output.

Known as the Unilever Manufacturing System (UMS), it’s now used in 124 sites and supports more than 75% of the company’s total production.

Drawing on the foundations of the World Class Manufacturing (WCM) model adopted in 2013, UMS adds layers of digital intelligence and sharper processes to improve how factory teams manage equipment, track waste and adapt to demand.

Across the network, the data shows measurable gains: a 3% increase in Overall Equipment Effectiveness (OEE), 5% higher labour productivity and 8% cost savings. For Unilever, these gains are not just numbers — they are central to fuelling business growth.

In Brazil, Unilever’s Indaiatuba factory stands out for its fast, flexible production.

Specialising in Home Care brands like Omo, Deja and Comfort, the site is a World Economic Forum Lighthouse — meaning it’s recognised for applying advanced digital tools at scale. Indaiatuba has posted the highest OEE in Unilever for two years running.

In 2024 alone, the site increased capacity by 20% and delivered savings close to €3m (US$3.3m).

Guseva Lyubov, Global ManEx Capabilities Manager, explains: “UMS gives us a high degree of agility to respond to fluctuations in demand. And the savings it’s delivering are critical to remaining competitive as a production site.”

In Germany, the Heilbronn factory, home to Knorr food products, has tackled food waste head-on. The team used UMS tools to pinpoint inefficiencies like overfilled and underfilled packs — issues that used to lead to automatic rejection.

Now, using rework machines, unopened food is salvaged and reprocessed, while the packaging is recycled. This approach has led to a 55% drop in food waste in 2024 compared with the previous year, worth €1.24m (US$1.3m) in savings.

In Missouri, USA, the Sikeston site - Unilever’s largest ice cream factory - has pushed waste reduction even further.

Already operating at an efficient 2.8% raw material waste in 2023, the team went on to slash this figure to 1.9% in 2024. That represents a 32.5% improvement year on year and contributes 28.5% of global waste savings. A sharp focus on machine performance and early problem detection played a major role in hitting this benchmark.

Meanwhile, in Cavite, Philippines, a factory producing haircare and deodorant products saw its OEE jump from 51% to 66% by the end of 2024. Brands made at the site include Sunsilk, Creamsilk, Rexona and Dove. A mix of process tweaks and staff upskilling helped Cavite reach its targets while saving €250,000 (US$278,668) annually.

What is UMS and why is it central to Unilever’s strategy?

UMS isn’t an off-the-shelf tool. It’s a customised version of WCM, built in collaboration between Unilever’s supply chain teams and digital specialists.

UMS brings together tech, real-time data and smart systems like digital twins — virtual models of physical operations that allow teams to simulate and fine-tune changes before they go live.

By combining these tools, UMS supports continuous improvement and helps each site align with strategic business priorities. Whether it’s responding to demand spikes or reducing waste, UMS gives factory teams the ability to act fast and with confidence.

Renato Miatello, Chief Product Supply Officer, sees this as more than just operational efficiency: “Training over 23,000 factory colleagues in digital skills and ownership across all functions and capabilities has been essential in the roll-out." 

 “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.”

A system built for flexibility, speed and future-proofing

UMS is not static. As factories learn and improve, the system is continuously updated. It’s also designed to adapt to technology.

Plans are in place to introduce Internet of Things (IoT) sensors that enable real-time performance tracking and predictive maintenance. These tools help identify problems before they happen, keeping machines running at their best.

UMS also supports environmental goals by cutting waste and improving energy use, positioning Unilever’s factories as models of responsible manufacturing.

As the company continues to evolve, UMS remains a central tool in making its factories faster, smarter and more efficient. The strategy is not just about cost — it’s about making the best use of time, resources and talent across its global operations.

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