CASE STUDY UNILEVER DISTRIBUTORS

ABOUT UNILEVER & DISTRIBUTION NETWORK

Unilever is formed in 1930, by a merger of margarine producer, Dutch Margarine Unie and soap producer, British Lever Brothers. Unilever is one of the worlds leading suppliers of fast moving consumer goods across foods, home and personal product categories. Unilevers portfolio includes some of the worlds best known and most loved brands. Unilever Turkey is founded and in operation since 1951. Some best known brands are Lux soaps, Algida icecreams, Calve soups, Lipton Tea, Sana. Company reorganize itself in 2004 around Vitality concept. The new Unilever is a symbol that represents the diversity of its business, products and people. In Turkey, its 28 brands are distributed via its distributor network and 46 big and middle sized distributors are using Unity.

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CASE STUDY UNILEVER DISTRIBUTORS

KEY BENEFITS OF USING UNITY

EFFECTIVE CAMPAIGN MANAGEMENT: Each campaign is created by Unilever Turkey and automatically imported into distributors Unity system. Campaigns can de defined in terms of group of products, group of clients, payment types, city, town, and district. Each line of campaign can contain discounts, promotion, and sales/purchase surcharge, which can be defined in the detailed formula editor. Sales management in Unilever Turkey can easily analyze the results of new campaign decisions. Since, daily sales transactions with applied campaign information are exported from Unity to Unilever SAP system. MANAGING SALES BETTER: Unilever distributes its 28 labels, which are grouped as food, home care, personal care, and professional products in Turkey. Unity establishes a stable fundament for fulfilling customer orders integrated with finance and distribution management modules. Unity can generate automatic sales reports and email to related distributor personnel with Unity Task Manager. Customers can be analyzed by their sales volume, sales return ratio, and cost of sales in these reports. MANAGING DISTRIBUTION ROUTES: Distribution routes are defined in Unity Distribution module. Sales managers can plan each representatives routes daily, weekly, monthly, with correct customer visit order information. Sales managers can easily assign sales premiums to representatives activities based on amount, volume, quantity or custom defined parameters leading to higher representative performance. SELLING MOBILE: Unity system in each distributor is also integrated with mobile sales application running in sales representatives PDA. PDAs can interactively exchange price lists, sales orders, payment information, etc Centrally managed address database in Unity leads sales representatives to choose from multiple shipment addresses for each customer, and to deliver error-free shipments. MINIMIZING COST OF SALES: Automatic procurement orders can be generated in the system, in order to fulfill customer orders and optimum inventory levels. Defining inventory levels for each item, enables distributors not to carry unnecessary inventory. All types of cost items are defined in the system, and when they occurred, are related with related sales transactions. Thus, when cost of sales analysis process is executed, all relevant costs are applied to sales figures. SPEED: Logo project management methodology enables distribution processes to be optimized for Unilever distributors. 44 middle scale (each having 10 Unity users), and 2 big scale (both having 15 Unity users) Unilever distributor are currently speaking through same Unilever dictionary. Fulfilling new customer requests are faster, error-free as the result of mobile application integration with warehouse, finance and distribution management in Unity.

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CASE STUDY UNILEVER DISTRIBUTORS

KEY UNITY FEATURES

PERFORMING PROFITABLE PURCHASE - Inbound Logistics

Inbound logistics enables Unilever distributors to procure the right product at the right time and price and from the right supplier. The objective is to: Lower manufacturing process time and increase inventory turnover rate Increase customer satisfaction Lower inventory costs Minimize obsolete inventory Increase return on investment Increase productivity Minimize overtime.

HANDLING MATERIALS WITH SPEED AND ACCURACY - Warehouse Management

Warehouse management system enables: Easily manage a high variety of products, Lower inventory holding costs, Apply appropriate inventory management policies to ensure the availability of the right products in warehouses, Minimize obsolete inventory, Lower product returns, Increase customer delivery reliability.

Inventory-carrying costs are calculated automatically and parameters to guarantee the availability of materials demanded are set in the system. This enables Unilever distributors to define own inventory policies and implement advanced warehouse operations procedures specifically for each warehouse. Inventory target and policies ABC analysis helps to focus on planning critical items and increase the effectiveness of inventory management. Minimum, maximum and safety stock levels helps making purchasing decisions. Users can analyze inventory status, turnover rates and costs. People responsible for purchasing and inventory management can easily view up-to-date inventory status data during transaction entry and make the right decisions on time. Material Classes and Features Material classes and features enable users to manage inventory hierarchically. These minimize data entry and errors by generating the common data for a group of materials once. Materials can be browsed easily by defining user permissions for required materials, leading to higher user satisfaction and speed. KNOWING WHERE THE ASSETS ARE - Fixed Asset Management

Fixed Asset Management enables users to calculate depreciation and value of fixed assets both in local and in reporting currency. Not only Unity calculates depreciations but also manage the purchase and sale of fixed assets and the related payment and collection transactions. ENABLING FINANCIAL REPORTING WITH EASE - Finance

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CASE STUDY UNILEVER DISTRIBUTORS Unity is designed to meet company requirements with an easy to use interface that increases the efficiency and effectiveness of users in managing the most critical financial operations of their business. Unity includes multi-currency support that meets the reporting needs of companies with multinational operations. Unity also runs in multiple languages and increases the effectiveness and efficiency of the accounting and finance departments by providing financial reports in both local and in reporting currency and in the language of the international partner prefers. Hence Unity enables users to provide timely and accurate management reports that meet the requirements of foreign currency reporting standards. Unity Navigator is a flexible management-reporting tool that enables users to design summary reports that compares current performance with previous financial periods in a visual format. Managers can use Navigator to perform multi-dimensional analysis and to monitor key performance indicators; so that they can make informed decisions and drive their company forward. Using Finance system users can efficiently manage Payment plans, payment and collections, Accounts payable and receivable transactions, Bank account, bank loans and cash management Checks and promissory notes.

Debt tracking reports, status and analysis reports help users manage cash flow, improve long-term relationship with their customers and suppliers and eliminate financial losses. Unity provides a flexible payment plan definition feature that enables to define company specific payment methods without any programming and apply these rules to determine installment date and amounts automatically. REALIZING GIVEN PROMISES - Sales Logistics

Sales and distribution management helps users to increase customer satisfaction and sales by managing customer relations better and lower costs by automating the sales process using Sales and Distribution Management module, users can Manage long term relationships with customers, manage financial risks before delivery, Design promotions and sales campaigns to increase sales, Increase the delivery reliability and efficiency through distribution process automation, Increase accuracy of sales forecasts by analyzing sales. Defining distribution routes, distribution vehicles and personnel.

Distribution Management Unilever distributors reduce costs and increase the delivery performance by managing shipments to dispatch the right products to the right destinations. Using distribution management user can automate and guarantee the loading of shipment vehicles with the right product and ensure that the right customers receive these products on time. Vehicle and product dimension definitions ensure loading of correct amount of products in each vehicle specifically for its route.

Promotion, Sales Campaign Management and Rule-Based Pricing Promotion applications are highly critical in order to increase or keep the market share. Using Unity users can easily design different pricing methods, discounts and promotions for different product

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CASE STUDY UNILEVER DISTRIBUTORS groups and customer segments for target marketing. Users can design sales campaigns that will be valid for a certain period of time to quicken the decision making process of customers. Users can define the campaign rules, the product and customer segments within the system so that the right prices, discounts and promotions are applied automatically by the system during order or invoice entry to reduce human errors. This automation minimizes data entry errors. Managers can track sales by campaign code and measure the effectiveness of each sales campaign and use these results in planning new sales promotions. Sales Organization and Sales Targets

Unity can assign yearly or periodic sales targets to sales people in terms of sales volume or quantity for all products or by product group. Users can compare sales with targets and using these data design incentive programs to motivate your salespeople.

LOGO consultancy and Professional services LOGO Business Solutions has developed LOGO Method, which is based on a systematic approach, SCOR, Supply Chain Operations Reference-model, enabling effective implementation of Supply Chain Management systems. LOGO Method aims to increase the overall productivity of the enterprises selecting LOGO products.

DATA SUMMARY - UNITY modules used in the project: Material Management Fixed Assets Management Finance Accounting Inbound Logistics Outbound Logistics (including Distribution Management module) Campaign Management Navigator Unity Collaboration Services for Mobile Applications and SAP (developed with MS Visual Studio using Unity Objects)

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CASE STUDY UNILEVER DISTRIBUTORS

About LOGO BUSINESS SOLUTIONS

LOGO Group is Turkey's largest independent software group. Since its foundation as an innovative start-up company, it has grown into a group of companies with activities ranging from development of accounting applications for small businesses, to large customizable ERP and supply chain solutions, training consultancy services, development of educational content and software, turn-key development projects, and distribution of third party products. LOGO, founded as Logo Yazilim in 1984 is the first and the flagship company of the group and it is also the first public IT Company listed on Istanbul Stock Exchange. The name LOGO reflects the evolution of the small start up company into a corporate international provider of business applications in the global market. LOGO is Turkeys market leader in application software with, 2.000 business partners and with an installed base 150,000 packages. LOGO is a registered Microsoft Certified Solution Provider and Oracle Certified Partner. LOGO has a strong focus on software engineering principles and pursues a highly committed quality program. The company is assessed at SPICE level 3, and has recently been awarded an ISO-9001:2000 certification from American Quality Assessors. IBM, one of the best technology companies of the world, started in 2003 Independent Software Vendor ADVANTAGE programme with 40 software developers from EMEA area including LOGO. Evaluating the performance of this programme, the ERP solution developed by LOGO got The Innovative Open Architecture Solution which is one of the 4 prestigious awards (and the only technology award). The awards are given by IBM at the meeting arranged in Paris, February, 2005.

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