Unilever Indonesia – Overall 2005 Indonesian MAKE Winner
Unilever has been operating in Indonesia since 1933. Currently, the Unilever business is based on two global divisions: Foods and Home and Personal Care. The global business of ice cream and foodservice operates within the former division.
Having operated in the country for many years, Unilever Indonesia is strongly integrated into the local and regional economies. In 2000, the company directly employed nearly 2,500 people, and indirectly close to an additional 20,000 people were engaged in activities through various partnerships. Over 1,200 companies supply raw materials and packaging to Unilever Indonesia or distribute its products. Many of these companies are small- or medium-sized enterprises (SMEs).
In recognition of Unilever Indonesia’s impact on these organizations, in 1988 the government presented the company with the prestigious Upakarti Award, the highest award for corporate contributions in the development of SMEs.
Knowledge Strategy
The awareness of ‘knowledge power’ is taken seriously by Unilever Indonesia. Sharing the Unilever global corporate purpose, Unilever Indonesia has stated its commitment to a willingness to embrace new ideas and learn continuously.
In 1998, Unilever adopted its Unilever Business Excellence Model (UBEM), followed by implementation of specific initiatives. Later, aligned with its vision, mission and values, Unilever began fostering its learning and sharing culture in the company’s strategy in the Human Resources Balance Business Plan (BBP).
Unilever believes that commitment is strengthened when senior management is deeply involved. Unilever also believes that investments to build facilities, infrastructures and culture are worth the effort. The enterprise culture, which adapts the ‘soul’ of the small company, makes employees strive for new ideas, solutions and creativity. Unilever always supports this initiative and rewards those who make a difference – they are recognized as Enterprise Award Winners.
Unilever delivers value for its customers, consumers and community by conducting many initiatives and collaborations in knowledge value chains. Unilever’s strategy is to focus on research and development and on marketing its leading brands. At the heart of Unilever’s corporate purpose, which guides its approach to doing business, is the drive to serve consumers in a unique and effective way. In 2004, Unilever stated its purpose: “We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life.
Knowledge Approach
The company’s Learning Department organizes numerous activities to inculcate the habit of sharing. The sharing activities are done with learning sessions, such as retrospect, SOLAR and knowledge club (k-club). Employees compete for Unilever Indonesia’s internally popular Learning Award. Most of the employees who have participated in the sharing sessions have felt satisfied.
The Learning Department also develops the company’s knowledge base, which is accessed on dependable IT systems such as the firm’s intranet, learning intranet, k-club, online library, Harvard module, and Crestcom modules for learning and knowledge resources. To accommodate employees’ needs for training, facilitating and gathering, the company has operated the Mega Mendung Learning Center (MMLC) for many years.
Unilever has developed some sophisticated methods for managing supplier relationships. This includes the Suppliers Quality Management and Assessment Program (SQMP), launched in 2000 as part of the company’s international drive to build a world-class supply chain. It measures suppliers’ abilities to achieve consistent quality in meeting Unilever’s specifications: on time and in full delivery, cost competitiveness, and reliability and flexibility.
Unilever finds that its business partners gain benefits by working with the company, including job creation, skills development, upgraded equipment, better quality goods and greater efficiency. For Unilever the gains are equally advantageous. It has consistent, regular and good quality lines of supply. It is able to get its products to market quickly, simply and at relatively low start-up costs. Moreover, the company is working with knowledgeable, supportive, local people, enabling Unilever and its suppliers to build their businesses. Unilever, its suppliers and society obtain many benefits through working in partnership and sharing knowledge.
Unilever focuses on winning the hearts of customers (internal and external) and constantly delighting consumers and community by understanding and anticipating their needs and responding entrepreneurially : proactively listening to consumer and community needs – resulting in actions that focus on improving value. Taking ownership of customer, consumer and community issues. Planning effectively – giving sufficient lead time to do the job properly. Delivering what’s promised – promptly. Caring about social conditions in the community surrounding them.
Unilever extracts the knowledge of its customers and consumers to make better products. In 2003, the company introduced to its employees the 3C (Consumer, Customer and Community) connection program. They are encouraged to proactively listen to their consumers, customers and community to collect insights for improving Unilever’s contribution. New techniques and IT infrastructures are built to support the 3C Connection program.