Tech and Talent Help Unilever Transform Manufacturing

Technology such as AI, robotics and other digital tools continue to shape manufacturing processes worldwide.

However, while instrumental, prioritising investments in the busy production floor has shown to yield the most consistent performance enhancements.

The World Economic Forum (WEF) and McKinsey, through their joint initiative, Frontline Talent of the Future, have found that focusing on frontline workers allows businesses to gain a productivity and performance edge.

Unilever involved four of its factories—Pouso Alegre in Brazil, Kilbourn in the US, Tianjin in China and Poznan in Poland—in the programme. These sites, which contribute to major brands like Knorr and Hellmann's, aimed to align human capital investments with improved operational outcomes.

Elevating production outcomes

Central to the initiative is the principle that investing in human capabilities and wellbeing directly impacts overall performance.

Richard Sharp, Chief HR Officer for Supply Chain at Unilever, summarises the straightforward connection: “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.”

The implementation of pilot schemes at the four Unilever factories, alongside nine other sites, demonstrated that investing in workforce development resulted in a 28% rise in productivity, as well as enhanced health and safety metrics.

Jennifer Han, Chief Product Supply Officer for Foods at Unilever, underscores the importance of empowering local leadership to tailor solutions: “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.”

Sites customised their approach to specific needs, with Kilbourn tackling stagnant output and Tianjin addressing rapid expansion and digitalisation. Both sites recorded marked process advancements.

From 2020 to 2024, across Unilever’s four participating sites, three observed a 27% enhancement in productivity metrics and a 41% decline in waste. Furthermore, Overall Equipment Effectiveness (OEE)—a crucial metric for factory efficiency—improved by an average of 11%, with all locations marking progress in this area.

Skills development

Jennifer notes that Unilever's Pouso Alegre factory experienced particularly noteworthy outcomes by focusing on skill enhancement, including both technical and soft skills.

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 approach resulted not only in higher OEE scores but also improved supply chain responsiveness. Enhanced production flexibility enabled the site to adapt more effectively to market requirements.

Similar results were recorded in other locations. Kilbourn's focus on automation and process improvements yielded a 16% rise in OEE, a 42% decrease in waste and a 60% reduction in absenteeism from 2021 to 2024. In Tianjin, waste reduction led to estimated savings of €52,000 from 2021 to 2024. Meanwhile, Poznan achieved a 27% decrease in waste per tonne of product.

It's clear that, while technology played a role, it was not the only factor contributing to these successes.

Jennifer Han emphasies that employees on the factory floor are often ideally positioned to identify inefficiencies and develop 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 waste.

Delivering sustainable improvements

Training initiatives and workforce empowerment have also driven up employee engagement, particularly as new technologies facilitate improved working conditions.

In Poznan, AI solutions reduced time spent on repetitive tasks, allowing a greater focus on roles that add value, contributing to a 79% increase in engagement from 2021 to 2024. Similarly, Tianjin achieved a 98% engagement score in 2024.

Beyond increased job satisfaction, financial benefits have also been substantial. Pouso Alegre delivered project savings exceeding 160% through initiatives that incentivise employees for driving operational improvements.

Perhaps the most illustrative example of results borne of people-focused innovation has been seen at Kilbourn, Unilever’s largest condiments plant in terms of production volume. Acknowledged by WEF and McKinsey as one of the three best-in-class 'talent spotlight sites', its success was achieved through fostering a culture of continuous optimisation, which elevated OEE while significantly reducing 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 optimized productivity we are aiming for.”