SECTION A [40 MARKS] Read the case study below and answer ALL the questions that follow UNILEVERS NEW CPO UNVEILS PROCUREMENT WITH PURPOSE VISION For decades, each Unilever product group had purchased goods and materials separately, each maintaining its own procurement system and staff, which meant Unilever missed opportunities to seek better deals by consolidating purchases of common goods, such as box packaging and receiving higher volume discounts from suppliers. In a concerted effort to stop haemorrhaging money on costly supply redundancies and inefficiencies, Unilever set up a SWAT team of procurement managers to delve into every element of company expenditure, from paper clips to pressed olives for Benecol and free-range eggs for mayo, to cookie dough for Ben and Jerrys legendary ice cream. Using wall displays of maps, strategies, project lists, plan schedules in their command centre, they drilled down to the tiniest expenses to find ways to streamline and save, efficiently. Seeing benefit in the better together idea, Unilever rolled out a corporate-wide application for buying indirect items, like office supplies. It then led the way with a standardized application for conducting reverse online auctions that could be used throughout the enterprise. Unilever pushed forward with web-based tools for sourcing suppliers and managing requests for proposals and in the process cut printing and postage costs to a minimum. Unilevers new chief procurement officer Willem Uijen has outlined how the company is using its sourcing strategy and supplier collaboration to raise industry standards.Uijen, who started the role in September, said in a publication that suppliers who demonstrated action taken on sustainability standards would be prioritised. At Unilever Procurement, we have big ambitions, he said. Our Procurement with Purpose vision seeks to ensure we are a purpose-led, value-driven and future-fit organisation that creates growth while delivering on Unilevers commitments to make sustainable living commonplace. He added: We encourage and support our suppliers on their own sustainability journeys and prioritise those who demonstrate shared values of respect and responsibility for people and planet by committing to our standards around responsible sourcing, sustainability and human rights. We believe that, by combining the expertise and integrity of our partners with our own, we can raise industry standards. Unilever has a 33bn procurement spend across food, packaging and commodities. Our work [in procurement] touches every part of the business, putting us in a unique position to make a positive impact on people and planet, he said. Uijen continued: We seek to combine our own technology expertise and insights with our partners, to support the creation of disruptive sourcing strategies and supplier-led innovation that respond to ever-changing consumer needs quickly, flexibly and effectively. Partnerships play a big role in our success. Every partner in our value chain has a role to play in creating the value, capacity and capability we need to deliver brands and products that consumers love and that support the wellbeing of people and planet. Were committed to collaborations that generate value and growth for Unilever and our partners.. Uijen, who has worked at Unilever for 23 years, was previously head of the supply chain at Unilever South Asia and Southeast Asi and Australasia. Reginaldo Ecclissato was announced as chief supply chain officer in January. In a report Unilever outlined how it is using technology and its procurement strategy to tackle deforestation to meet its commitments to eliminate deforestation in its supply chains for palm oil, paper and board, tea, soy and cocoa by the end of 2023. Uijen said: The latest digital capabilities will help us better identify high-risk areas and target interventions where theyre most needed. Technology will also be a force for good as we leverage these capabilities to help us understand areas that need protection and those that have high potential for regeneration. He said the firm was testing technology solutions to drive traceability and transparency in its supply chains, as well as partnering with suppliers, governments and NGOs.

QUESTION 1 1.1 In the context of Unilever, critically discuss the responsibilities of the chief procurement officer Willem Uijen and examine how this role adds value to Unilevers competitive advantage. (10 marks)

1.2 Partnerships play a big role in the success of Unilever. Every partner has a role to play in creating the value, capacity and capability needed to deliver brands and products that consumers love and that support the wellbeing of people and the planet". Considering this statement, describe supplier partnerships and discuss their significance in the context of Unilever. (20 marks)

1.3 With reference to Unilever, critically discuss ANY FIVE (5) factors and or issues that Willem Uijen should take into consideration when setting up a procurement strategy. (10 marks)