How Unilever is Digitising the Entire Value Chain

A custom digital platform for distributing products is changing how Unilever handles orders from small retailers and will be operating in six important developing markets by May this year.

"Our goal was to create a future-fit platform that could scale and serve our distributive trade business globally, while adapting to local needs and nuances," says Prashaant Huria, Unilever VP and Chief Digital and Technology Officer for Customer Development.

Close to 500,000 retailers, 600 distributors and over 6,000 sales reps across Indonesia, Vietnam, Pakistan, the Philippines and Thailand will all obtain access to the cloud-based platform and digital tools. These new assets will cover the entire value chain – from the initial demand generation to order capture, fulfilment and customer service.

Roll-out is already underway in Bangladesh.

"Comprehensive training and on-ground support are also being provided to ensure the system is simple, efficient and seamless for people to use," adds Prashaant.

The platform currently processes 75,000 orders daily, supporting annualised sales of €2.5bn (Approx US$2.8bn).

A model called Shikhar is already delivering tangible results in India. The platform is also being adapted for Latin America to meet specific route-to-market needs.

Digital transformation empowers small family businesses

Small family-owned stores remain the main sales channel for household essentials in most developing markets, with projected growth of 7.6% annually through 2030, despite the expansion of large supermarkets. 

These small retailers typically depend on sales representatives for ordering and stock replenishment, while facing challenges with delivery reliability and limited access to optimal pricing and promotions. 

As part of Unilever's digital transformation, these small stores now have access to the same eB2B mobile application used by sales representatives. This enables even rural retailers with inconsistent internet connectivity to use their phones to view the complete product range, access the best discounts and place orders independently whenever needed, around the clock. 

The results have been impressive for both sales and convenience. A distributor in Thailand notes: "The app creates business opportunities and boosts sales for stores in a competitive marketplace." 

Sales personnel also report that the app simplifies their work. Furthermore, in Thailand, the Philippines, Indonesia and Vietnam, Unilever has seen improvements in its Net Promoter Score — which measures retailers' likelihood to recommend their products and services. 

The retail eB2B app now ranks first among competitors in each of these countries.

AI-powered insights drive growth and efficiency

Digitisation offers valuable insights across Unilever’s entire value chain. At the broader level, these insights inform forecasting and channel strategy.

At the individual store level, they increase loyalty, order value and overall sales. AI-powered product recommendations help sales representatives maximise their brief 15-20 minute retailer visits. Using advanced AI modelling, they can better predict what retailers are likely to purchase. 

By prioritising relevant, high-value products, sales representatives can evolve beyond simply taking orders. With deeper customer insights, Unilever’s sales teams now personalise engagement strategies, customise loyalty programmes and design targeted promotions that resonate with retailers, boosting conversions and sales. 

This approach makes sales calls more efficient, allowing representatives to visit more locations while maintaining quality customer service. Store display photos provide another crucial data source. Using AI and image processing technology, sales teams gain visibility into inventory levels, enabling them to better advise retailers on product placement and merchandising strategies that promote new items and drive growth.

Streamlining distribution operations

The platform enhances distributor efficiency as well. When orders arrive, a distribution management system automatically checks current inventory against ordered quantities and triggers resupply for any shortages.

It also seamlessly handles settlements, credits and returns. In many markets, the system includes route optimisation tools that help distributors identify the most sustainable and cost-effective delivery options.

Elevating service quality

By leveraging its global technology platform to provide ordering access, discounts and online support, Unilever has significantly improved service for millions of small family retailers. This enables these stores to enhance competitiveness, build resilience and achieve sustainable long-term growth.

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