Superior Availability
Creating an agile and resilient supply chain.
As climate change accelerates, global supply chains are increasingly disrupted by extreme weather events.
In line with our commitment to ‘Powering HUL to win with Next-Gen Capabilities,’ we are future-proofing our business by building an agile, sustainable, digital, and climate-resilient supply chain. Through predictive AI, decarbonisation, and responsible sourcing, we ensure that our operations can withstand climate volatility while reducing our environmental footprint.
At Hindustan Unilever Limited (HUL), we are at the forefront of recognising the urgent need to safeguard our operations against climate unpredictability.
Building a climate-resilient supply chain
We have developed innovative strategies to build a more climate-resilient supply chain.
This capability helps us remain competitive, while also reducing transport emissions and maintaining steady product availability, even in adverse conditions.
Integrating Industry 4.0 and new-age technologies into our operations is helping us unlock a new level of efficiency and agility with hard-to-replicate capabilities.
Yogesh Mishra, Executive Director, Supply Chain
Leveraging predictive AI models
At the heart of HUL’s climate resilience efforts is the use of predictive AI models and Industry 4.0 technologies. These advancements help us forecast climate-related risks and make more informed decisions about production and distribution. This system allows our operations team to adjust production plans based on the previous day’s sales. By adopting AI models, we not only reduce waste but are also responding in real-time to the market.
Alongside predictive AI, we have developed a new demand system to optimise inventory management. This system allows us to predict product demand more accurately, preventing excess stock build-up and reducing wastage.
Improving last-mile connectivity
To further enhance resilience, HUL has set a goal to improve last-mile connectivity. This initiative focuses on reducing the challenges associated with delivering products to remote areas. With better last-mile connectivity, HUL ensures that essential goods reach even the most isolated customers, preventing shortages and maintaining consumer trust.
Decarbonising our supply chain by 2039
We are also committed to decarbonising our entire supply chain by 2039. We have already made significant strides in reducing emissions at our manufacturing units, and we target to reduce 100% operational emissions by 2030.
On the transportation front, our 'Load more, travel less' strategy has improved fuel efficiency, reduced travel distances, and lowered emissions. We're exploring BIO CNG for logistics and increasing electric vehicle use in last-mile operations, with over 100 EVs already in our distribution system.
How HUL’s Supply Chain Stands Out
Our future-proofing plans include four overarching pillars, each designed to enhance agility, sustainability, and consumer satisfaction:
Superior Value
Enabling a digital-first, world-class supply chain.
Superior Product
Ensuing hero product quality with no exceptions.
Superior Care for People and the Planet
Investing in a sustainable value chain ensures we win today and tomorrow.
The future of supply chains will be defined by resilience, sustainability, and innovation. As we continue to push boundaries, our commitment remains clear: to build a system that delivers with agility, thrives amidst uncertainty, and contributes to a more sustainable world.