Our agile and resilient supply chain

Over the years, our supply chain has evolved as a source of competitive advantage. In line with our vision of ‘Powering HUL to win with Next-Gen Capabilities’, we are safeguarding our business by working towards an agile, sustainable, digital and resilient supply chain.

99%+

suppliers trained in ESG awareness

75 Bn+

units produced annually

96%

energy consumed from renewable sources

Our supply chain has evolved into an ecosystem that not only drives the business bottom line through efficiency and savings but also fosters growth by creating an agile, resilient, and sustainable framework.

Integrating Industry 4.0 and new-age technologies into our operations has helped unlock a new level of efficiency and agility with hard-to-replicate capabilities.

Yogesh Mishra Executive Director, Supply Chain

anuradha-razdan

What makes us superior

Superior availability

Creating an agile and resilient supply chain

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Superior value

Enabling a digital first, world class value chain

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Superior product

Ensuring hero product quality with no exceptions

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Superior care for people and the planet

Investing in a sustainable value chain ensures that we win today and tomorrow

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Partnering for the future

Our suppliers stand as crucial pillars in our pursuit of growth. We have developed action plans with our key partners to enable strategic capabilities and unlock incremental value.

Did you know?

Two of our factories in Dapada and Sonepat now have the title of the prestigious ‘End-to-End Lighthouse’, awarded by The World Economic Forum for implementing advanced Industry 4.0 solutions on shop floor.

Superior availability

We continue to fortify our resilience programme in collaboration with our suppliers to guarantee business continuity and respond expeditiously to our consumers' dynamic requirements.

Our nano factories, small-scale production lines, have significantly reduced batch sizes, leading to faster innovation launches. This has allowed us to increase the frequency of Stock-Keeping Units (SKUs) production while maintaining and enhancing our efficiency. Currently, we produce 250 SKUs in nano factories.

Our sophisticated forecasting tools enable us to reduce our planning cycles and respond more effectively to market fluctuations. Cognitive skills for real-time decision-making and write-back to execution systems with minimal human intervention have been developed. This is done through dynamic modifications of ideal stocks. Currently, 100% of our portfolio undergoes these changes every week.

Superior value

Leveraging digital interventions, we now promptly identify and address real-time losses on production lines, leading to more effective corrective actions. Our energy management system ensures prudent energy consumption. We have successfully implemented a Manufacturing Control Tower for key production formats to benchmark best practices across our factories and seamlessly implement them across various sites.

Nakshatra, our supply chain transformation programme, has achieved significant success in its initial phase. We continue to expand into additional categories to align production more closely with demand, minimising travel distances and enhancing agility.

We have set-up a highly intelligent and automated warehousing system in Chennai under our Project 'Samadhan' for reliable next day delivery and are in the process of expanding it to other geographies.

Superior product

We aim to protect and grow our business by driving superior consumer experience.

We have leveraged next-gen technology (Gen AI-based Large Language Model) to generate better insights and accuracy in categorising consumer feedback. We have continued to strengthen our quality norms not only in our owned sites, but also at our suppliers and manufacturing partners’ end.

Through our digital solutions, we are ensuring both on-pack and in-pack product standards. We have developed digital twins for few of our critical processes to ensure consistency in product quality. Our end-of-line quality control measures empower us to deliver superior products.

As a result of these actions, our consumer blind tests indicate that we now have 3X more superior products compared to 2019.

Superior care for people & planet

Care for people and the planet is the bedrock of our strategy. This year, we have successfully incorporated the usage of recycled plastic in our packaging and moved ahead with our recyclable packaging agenda. 96% of energy used in our operations is renewably sourced. We have also deployed 100+ Electric Vehicles in our last mile ecosystem.

It has been ten years since we started ‘Prabhat’ our sustainable community development initiative. Since its inception, Prabhat has left a profound mark on the lives of nearly 10 Mn people across 1,200+ villages in the communities around our factory and depot locations, showcasing the tangible outcomes of economic empowerment, improved health and nutrition, and a commitment to environmental sustainability.

Partnership with Brookfield

We recently announced a strategic partnership with Brookfield to set up a solar energy park with 45 Megawatts capacity in Rajasthan.

Our partnership with Brookfield is a journey towards commoditising renewable energy to achieve our green ambitions. It will be generating fuel for growth by reducing electricity costs for our own and our partners' manufacturing ecosystems.

Partnership with Tuticorin Alkali Chemicals and Fertilizers

We have forged a partnership with Tuticorin Alkali Chemicals and Fertilizers Limited, which is helping us with low-carbon Soda Ash and thereby reducing the carbon footprint of our detergent business. The success of the low-carbon Soda Ash pilot was revealed during the ‘Clean Future Summit’ hosted by HUL in August 2023.

This event brought together high-ranking Government officials, top industry players, sustainability think tanks, global management consultancies and many others. In a first, 18 of our key partners signed the ‘Climate Pledge’, thus demonstrating their commitment to a net-zero journey.

Interventions in bought-leaf factories

For our agricultural commodities like tea, coffee, tomatoes and dairy, we have embarked upon several strategic partnerships to implement regenerative agricultural practices to preserve natural resources and biodiversity, enhance yield, minimise GHG emissions and improve farmer livelihoods.

We have launched a quality upgradation Programme with bought-leaf factories which is aimed at elevating the quality of tea production while enhancing the livelihoods of farmers.

Fast-paced innovation

We are on a mission to create an intelligent, customer-centric end-to-end integrated Supply Chain that prescribes actions based on real-time predictions. We are deploying digital, automation and machine learning-led solutions across the end-to-end value chain.

For instance, we have transformed a soap cascade into 'Lights Off Manufacturing', automating the entire process and packing and removing the need for physical interventions.

Automation for the future

We are driving competitive buying through advanced machine learning solutions, which aid in sourcing decisions by accurately predicting supplies and prices to drive profitability.

We are building a unique capability of Manufacturing Control Tower to digitally connect all sites producing the same format for real-time benchmarking and insight generation for performance improvement.

Our ‘Supply Chain Nerve Center’ is the hub of our operations, integrating the pillars of Plan, Source, Make, and Deliver. This integration drives intelligent decision-making, provides end- to-end visibility, and enables automated actions and operational efficiency.

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Reducing greenhouse gas emissions from refrigeration

We continue to roll out environmentally friendly freezer cabinets that use Hydrocarbon (HC) refrigerants instead of Hydrofluorocarbons refrigerants across India.

1,67,000+

Freezers with HC technology in our fleet

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Collaborating for a Clean Future

In 2023, we hosted a ‘Clean Future Summit’ to lead industry-wide commitments on sustainable practices around emissions across the value chain.

The event brought together high ranked government officials, top industry players, sustainability think tanks, global management consultancies and many others. Eighteen of our key partners signed the ‘Climate Pledge.’

During the event we also announced the successful scale up of low greenhouse gas emitting soda ash, a key ingredient for our laundry brands, in partnership with Tuticorin Alkali Chemicals and Fertilizers Limited.

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Introducing Electric Vehicles in our distribution network

Furthering our approach of taking the customer along and driving innovation towards our net-zero ambition in our value chain, we have introduced EV's in our distribution network.

Today, our last mile network is powered by over 100 EVs.  We have a long, long way to go. But our journey so far motivates us, empowering us to navigate the uncharted terrain confidently. We will also continue to harness and explore Bio CNG, Hydrogen, and other green energy options as a fuel for our distribution network.