MNP3703 Assignment 1 (COMPLETE ANSWERS) Semester 2 2025 - DUE 11 September 2025

Strategic Sustainability and Localisation: Unilever’s Supply Chain Transformation in Africa Introduction Unilever is a multinational consumer goods organisation with a long history of global expansion and adaptation. The organisation was formed in 1929 through the merger of the Netherlands-based Margarine Unie and the United Kingdom-based Lever Brothers. Over the decades, Unilever has expanded its product offerings across food, personal care and household products, becoming one of the world’s largest manufacturers in the consumer goods sector. Unilever’s entry into the African market Unilever has a strong presence in Africa, operating in 41 countries and serving approximately 600 million consumers. Unilever first entered South Africa through the importation of its products in the early 1900s, specifically starting with Sunlight soap, which quickly gained popularity due to its cleaning efficiency and affordability. Consider Unilever's relationship with Psaltry International in Nigeria in terms of whether it is transactional, collaborative, or strategic, and discuss how Unilever develops or supports Psaltry. Comment on how the nature of this supplier relationship reflects Unilever’s overall supplier relationship strategy in Africa. This initial success marked the beginning of Unilever's presence in the region and paved the way for the expansion of its product range and brand portfolio throughout South Africa and the broader African market. Unilever has shifted its sourcing strategy to increase reliance on African suppliers to manage risk. Identify two sourcing risks Unilever aimed to reduce and explain how the sourcing strategy addressed each risk using examples from the case study. The organisation employs over 40,000 people across the continent, with a significant footprint in South Africa, where it employs more than 3,500 individuals. Unilever entered Africa through acquisitions and local partnerships, leveraging its global expertise to adapt products to the unique needs of African consumers. Today, Unilever’s African market is vital for its global strategy. Unilever’s supplier network in Africa Unilever purchases a wide range of raw materials from Africa, including agricultural products, packaging materials and essential oils. These suppliers span multiple African countries, contributing to Unilever’s supply chain resilience and economic development within the region. Below are key suppliers and the countries they operate in: Nigeria Psaltry International supplies sorbitol and cassava starch used in food and personal care manufacturing. Unilever’s shift to local sourcing required change management in its supply network. Identify one major change implemented by Unilever in Africa and explain how this change was managed to ensure supplier compliance or development. Support your answer with an example from the case study. Unilever shifted to purchasing sorbitol locally to reduce reliance on Asian imports, supporting over 10,000 smallholder cassava farmers. Through its Shakti programme, Unilever Nigeria also promotes rural inclusivity by incorporating more than 13,000 women and 170 persons with disabilities into its distribution network. The programme also empowers participants through business training and access to micro-finance, supporting entrepreneurship in underserved communities. The organisation has partnered with Wecyclers to collect over 13,000 tonnes of plastic waste since 2014, contributing to circular supply chains via community buy-back centres, incentivised waste collection, and consumer education campaigns. Unilever’s shift to local sourcing required change management in its supply network. Identify one major change implemented by Unilever in Africa and explain how this change was managed to ensure supplier compliance or development. Support your answer with an example from the case study. In terms of operational efficiency, Unilever Nigeria implements Systems, Applications, and Products in Data Processing (SAP) Economic Order Quantity (EOQ), and Just-in-Time (JIT) models to manage inventory, reduce costs, and enhance supplier responsiveness. Consider Unilever's relationship with Psaltry International in Nigeria in terms of whether it is transactional, collaborative, or strategic, and discuss how Unilever develops or supports Psaltry. Comment on how the nature of this supplier relationship reflects Unilever’s overall supplier relationship strategy in Africa. Classify Mpact, Unilever’s South African packaging supplier, into one of the quadrants of the Supplier Preferencing Model. Justify your answer using evidence from the case study These systems are supported by predictive analytics and demand forecasting tools that improve purchasing planning and production scheduling. Supplier relationships are further strengthened through strategic outsourcing, cross-functional coordination, and capacity-building, with an emphasis on supplier diversity by onboarding micro and small enterprises and helping them meet Unilever’s sustainability standards. Additionally, Unilever Nigeria participates in the development of agro-processing hubs to strengthen backward integration and local sourcing. Unilever’s shift to local sourcing required change management in its supply network. Identify one major change implemented by Unilever in Africa and explain how this change was managed to ensure supplier compliance or development. Support your answer with an example from the case study. To enhance agricultural quality and traceability, Unilever provides training on good agricultural practices (GAP), integrated pest management, soil health, and climate-resilient farming. Consider Unilever's relationship with Psaltry International in Nigeria in terms of whether it is transactional, collaborative, or strategic, and discuss how Unilever develops or supports Psaltry. Comment on how the nature of this supplier relationship reflects Unilever’s overall supplier relationship strategy in Africa. Classify Mpact, Unilever’s South African packaging supplier, into one of the quadrants of the Supplier Preferencing Model. Justify your answer using evidence from the case study These efforts are aligned with the Roundtable on Sustainable Palm Oil (RSPO) and Global Food Safety Initiative (GFSI) standards. Furthermore, Unilever’s sourcing strategy is informed by academically grounded research on crop varietals and post-harvest loss reduction conducted by institutions such as the National Root Crops Research Institute (NRCRI), the National Horticultural Research Institute (NIHORT), and the Nigerian Stored Products Research Institute (NSPRI). Ghana Benso Oil Palm Plantation (BOPP) and Serendipalm supply palm oil that is used for food and personal care products, for example soaps and margarine. These suppliers align with Unilever’s commitment to ethical sourcing by promoting sustainable agricultural practices and engaging smallholder farmers to ensure that palm oil production meets recognised environmental and social standards. Unilever Ghana also collaborates with community-based organisations and partners with NGOs to promote agroforestry and support certification under the RSPO. A noteworthy achievement includes its support for Twifo Oil Palm Plantation in obtaining RSPO certification – an initiative that underscores Unilever’s dedication to traceability, biodiversity protection, and responsible agricultural growth. Unilever has shifted its sourcing strategy to increase reliance on African suppliers to manage risk. Identify two sourcing risks Unilever aimed to reduce and explain how the sourcing strategy addressed each risk using examples from the case study. The certification process provided targeted training in land-use planning, high conservation value (HCV) assessments, and sustainable harvesting techniques. Beyond certification, Unilever Ghana integrates its sourcing efforts with broader national priorities under the African Continental Free Trade Area (AfCFTA), advocating for Ghana’s strategic position in palm oil production based on its favourable climate, land availability, and skilled labour base. Through AfCFTA, the organisation aims to improve regional trade flows, reduce logistical inefficiencies, and expand local sourcing. Operationally, Unilever supports supplier development by working with local agro-processors, technical training institutions, and research bodies to strengthen agricultural productivity, reduce post-harvest losses, and modernise storage infrastructure. These collaborations include training on GAP, organic inputs, and pest management to ensure alignment with global quality and safety standards. As in Nigeria, Unilever Ghana’s supplier development includes training in GAP, but with a stronger focus on organic inputs and pest management suited to palm oil production systems. Unilever has shifted its sourcing strategy to increase reliance on African suppliers to manage risk. Identify two sourcing risks Unilever aimed to reduce and explain how the sourcing strategy addressed each risk using examples from the case study. Unilever Ghana’s commitment to sustainability also extends into circular economy practices, like Nigeria’s Wecyclers partnership, by working with local actors to strengthen plastic waste recovery, support community buy-back initiatives, and promote awareness around responsible disposal. Inclusivity remains a central pillar of its strategy, reflected in the rural deployment of the Shakti programme, similar in structure and purpose to the initiative in Nigeria, which empowers women entrepreneurs through product distribution, business training, and micro-finance access. Internally, the organisation fosters ethical labour practices, gender equity, and skills development within its supply and production functions. Through sustained engagement in industry roundtables and multi-stakeholder platforms, Unilever Ghana contributes to shaping national policy, advancing sustainable sourcing and supply chain resilience across West Africa. Kenya Kenya is a critical hub for Unilever’s tea supply. Unilever has shifted its sourcing strategy to increase reliance on African suppliers to manage risk. Identify two sourcing risks Unilever aimed to reduce and explain how the sourcing strategy addressed each risk using examples from the case study. Sasini PLC and the Kenya Tea Development Agency (KTDA) supply tea used in Lipton and other Unilever brands. In line with its global commitment to supply chain transparency, Unilever publicly disclosed its list of tea suppliers, including those in Kenya, to support traceability, accountability, and ethical sourcing practices. This initiative is complemented by Unilever Kenya’s use of SAP’s Advanced Planning Optimiser and dynamic replenishment systems, like the digital inventory and purchasing tools deployed in Nigeria, though here applied specifically to tea sourcing and distribution. These digital tools enhance supply responsiveness by integrating real-time data sharing – a capability also present in Nigeria, where SAP and predictive analytics support inventory and production planning. To support agile purchasing and supplier performance, the organisation applies early supplier involvement (ESI) and supply network collaboration (SNC), fostering innovation and long-term alignment with sourcing objectives. As a founding member of the Ethical Tea Partnership, Unilever Kenya has contributed to labour rights reform and environmental compliance across tea plantations in East Africa. It supports fair wages, safe working conditions, and gender-responsive policies while also advocating for stronger labour protections through dialogue with agricultural policymakers. Unilever Kenya invests significantly in farmer development. Like in Nigeria and Ghana, Unilever Kenya provides training in GAP; however, its programmes are specifically adapted to the needs of tea growers, placing greater emphasis on soil conservation, organic fertiliser use, and low-chemical inputs. Delivered through partnerships with NGOs, agricultural experts, and community groups, these initiatives are aimed at improving productivity and environmental sustainability. The organisation also pursues carbon reduction across its supply chain by adopting energy-efficient technologies and low-emission transport methods. To enhance ecosystem conservation, Unilever Kenya supports landscape restoration projects in key tea-growing regions like Kericho, including reforestation, rainwater harvesting, and agroforestry. These projects are designed to preserve biodiversity and improve watershed resilience. Classify Mpact, Unilever’s South African packaging supplier, into one of the quadrants of the Supplier Preferencing Model. Justify your answer using evidence from the case studyThe organisation is also piloting digital agriculture solutions – such as mobile advisory services, geospatial farm mapping, and digital traceability tools – to expand farmer access to information and ensure visibility across the supply chain. In alignment with its broader inclusion agenda, Unilever Kenya supports women and youth participation in value chain activities. Through collaborations with cooperatives and development partners, the organisation promotes entrepreneurship and financial inclusion among marginalised groups. By integrating technological innovation, sustainability practices, and inclusive development, Unilever Kenya is building a transparent and future-oriented supply system that contributes to long-term regional growth. South Africa Nampak and Mpact are key packaging suppliers providing cartons, plastic bottles, and biodegradable materials, which is used for packaging food and household products. Unilever collaborates with these suppliers to innovate sustainable packaging solutions. These efforts support the organisation’s broader goals of reducing its environmental footprint by exploring alternative materials, improving recyclability, and minimising reliance on virgin plastic. Beyond packaging, Unilever plays a significant role in South Africa’s economy. According to Kapstein (2025), the organisation supports more than 100,000 jobs through both direct employment and its extended value chain, contributing approximately 1% to the national GDP. Unilever South Africa promotes inclusive growth by supporting the development of small and medium-sized enterprises, particularly those owned by historically disadvantaged groups. Through its black economic empowerment (BEE) initiatives, the organisation implements preferential purchasing policies and provides technical support to emerging suppliers to help them meet operational and sustainability standards. To strengthen its agricultural sourcing base, Unilever works with farming communities in provinces such as Limpopo and KwaZulu-Natal to secure locally grown herbs and essential oils. This reflects Unilever’s broader African sourcing strategy, as seen in Nigeria, Ghana, and Ivory Coast – though in South Africa, the focus is on locally grown herbs and essential oils rather than staple food crops. These partnerships aim to commercialise smallholder production by improving access to markets, quality inputs, and agronomic knowledge. Unilever promotes climate-smart agriculture across multiple African operations. In South Africa, this includes efficient irrigation, soil regeneration, and low-emission cultivation systems, distinct from the agroforestry and perennial crop strategies used in Ivory Coast and Kenya. To further integrate sustainability goals, Unilever South Africa incorporates digital technologies to optimise supply chain operations and monitor environmental performance too. Unilever South Africa also uses SAP-integrated systems for purchasing and logistics, consistent with digital approaches in Nigeria and Kenya, although here applied across a more diversified product portfolio, including packaging and personal care. These platforms are aligned with sustainability objectives by enabling real-time monitoring of resource efficiency and environmental impact across purchasing and logistics activities. Ivory Coast Unilever sources cocoa from suppliers such as Cargill and Barry Callebaut. These partnerships adhere to fair labour standards and sustainable sourcing certifications. Cocoa is a critical ingredient in Unilever’s ice cream and confectionery products. In Ivory Coast, the organisation’s sourcing strategy emphasises transparency and accountability by supporting digital traceability systems that track cocoa back to individual farms. This enables more precise monitoring of environmental compliance and labour conditions, ensuring alignment with global ethical standards. To support long-term resilience in cocoa-growing communities, Unilever invests in programmes that strengthen education, health, and economic inclusion. In collaboration with NGOs and local authorities, the organisation has contributed to the development of schools, vocational training centres, and health facilities in rural areas. These initiatives address underlying social vulnerabilities that contribute to child labour and aim to improve livelihoods across farming households. At the production level, Unilever promotes sustainable agricultural practices through its suppliers by encouraging agroforestry, climate-smart farming, and integrated pest management. These practices are central to the Cocoa & Forests Initiative, which seeks to eliminate deforestation and enhance climate resilience in cocoa landscapes. Farmer training in Ivory Coast covers similar ground to GAP initiatives in Nigeria and Kenya, but places added emphasis on agroforestry and cocoa-specific regenerative techniques aligned with the Cocoa & Forests Initiative. Unilever supports women’s empowerment and financial inclusion through farmer field schools and savings groups, a parallel initiative to those in Ghana and Nigeria, though more tightly integrated with community resilience and child labour prevention in cocoa-producing regions. In parallel, the organisation engages in policy dialogue with government stakeholders on issues such as land tenure reform, forest conservation, and price regulation to create an enabling environment for sustainable cocoa production. By combining traceable sourcing, rural development, and advocacy, Unilever is contributing to a more ethical, inclusive, and environmentally responsible cocoa supply chain in Ivory Coast. Sourcing developments and strategic direction for Africa Unilever is increasing its reliance on African suppliers to moderate currency fluctuations and supply chain disruptions. The organisation is actively shifting purchasing from Asia to Africa to mitigate currency volatility and supply chain disruptions. This includes increased local sourcing of sorbitol, spices, and packaging materials. Procurement Magazine (Collins, 2023) echoes that the organisation specifically aims to reduce costs associated with international shipping and currency fluctuations by leveraging Africa’s growing manufacturing sector. The move also fosters greater self-sufficiency and economic empowerment across African markets. Other multinational organisations like Nestlé and Danone are now following Unilever’s lead by expanding their supplier base within Africa, strengthening the continent’s role in the global supply chain. This shift aligns with Unilever’s broader vision of supply chain transformation through the Responsible Sourcing Programme, which governs ethical, environmental, and operational standards across all supplier engagements. Under the Responsible Partner Policy (RPP), African suppliers are evaluated using the Unilever Supplier Qualification System (USQS), which assesses readiness in areas such as labour rights, environmental impact, and long-term value delivery. These frameworks ensure that localisation efforts do not compromise on global standards, while offering African suppliers structured support to meet mandatory and aspirational benchmarks. Unilever’s Living Wage Promise, a cornerstone of its responsible sourcing model, reinforces income equity by committing that 50% of its global purchasing will be directed to suppliers paying a living wage by 2026. In Africa, where agricultural and manufacturing workers often face income instability, this pledge supports dignified livelihoods in critical sectors such as tea, palm oil, herbs, and packaging. Collaborations with partners such as IDH and the WageIndicator Foundation enable localised implementation through wage data analytics, training tools, and compliance monitoring mechanisms tailored to regional realities. Unilever’s sourcing direction is also informed by its sustainability transformation agenda, which encompasses regenerative agriculture, circular packaging systems, and climate resilience. Although regenerative pilots are more mature in Europe, Asia, and the Americas, the global ambition to transition one million hectares to regenerative practices by 2030 holds substantial relevance for African production zones in Kenya, Nigeria, Ghana, and South Africa. In these countries, Unilever’s regenerative goals are applied through initiatives supporting soil restoration, biodiversity, and improved farmer incomes, in line with broader climate risk mitigation strategies. Complementing agricultural reforms are packaging innovations aimed at reducing plastic waste and improving resource efficiency. These include local partnerships for plastic recovery and recycling, reusable packaging pilots, and systems that track environmental performance across supplier networks. By integrating sustainability into its sourcing models, Unilever not only responds to global ESG (Environmental, Social, and Governance) expectations, but also strengthens its long-term resilience in African markets. Conclusion Unilever’s supplier relationship management strategy in Africa is rooted in sustainability, localisation, and long-term partnership. Through deliberate efforts to source regionally, empower smallholder farmers, adopt climate-resilient practices, and integrate suppliers into global quality and ethical frameworks, Unilever has positioned itself as a leader in inclusive supply chain development. The organisation’s investments in technology, traceability, capacity building, and fair compensation systems reflect a strategic vision that balances operational performance with social responsibility. In doing so, Unilever not only enhances its competitive advantage, but contributes meaningfully to economic empowerment, environmental stewardship, and supply chain resilience across the African continent. Strategic Sustainability and Localisation: Unilever’s Supply Chain Transformation in Africa Introduction Unilever is a multinational consumer goods organisation with a long history of global expansion and adaptation. The organisation was formed in 1929 through the merger of the Netherlands-based Margarine Unie and the United Kingdom-based Lever Brothers. Over the decades, Unilever has expanded its product offerings across food, personal care and household products, becoming one of the world’s largest manufacturers in the consumer goods sector. Unilever’s entry into the African market Unilever has a strong presence in Africa, operating in 41 countries and serving approximately 600 million consumers. Unilever first entered South Africa through the importation of its products in the early 1900s, specifically starting with Sunlight soap, which quickly gained popularity due to its cleaning efficiency and affordability. Consider Unilever's relationship with Psaltry International in Nigeria in terms of whether it is transactional, collaborative, or strategic, and discuss how Unilever develops or supports Psaltry. Comment on how the nature of this supplier relationship reflects Unilever’s overall supplier relationship strategy in Africa. This initial success marked the beginning of Unilever's presence in the region and paved the way for the expansion of its product range and brand portfolio throughout South Africa and the broader African market. Unilever has shifted its sourcing strategy to increase reliance on African suppliers to manage risk. Identify two sourcing risks Unilever aimed to reduce and explain how the sourcing strategy addressed each risk using examples from the case study. The organisation employs over 40,000 people across the continent, with a significant footprint in South Africa, where it employs more than 3,500 individuals. Unilever entered Africa through acquisitions and local partnerships, leveraging its global expertise to adapt products to the unique needs of African consumers. Today, Unilever’s African market is vital for its global strategy. Unilever’s supplier network in Africa Unilever purchases a wide range of raw materials from Africa, including agricultural products, packaging materials and essential oils. These suppliers span multiple African countries, contributing to Unilever’s supply chain resilience and economic development within the region. Below are key suppliers and the countries they operate in: Nigeria Psaltry International supplies sorbitol and cassava starch used in food and personal care manufacturing. Unilever’s shift to local sourcing required change management in its supply network. Identify one major change implemented by Unilever in Africa and explain how this change was managed to ensure supplier compliance or development. Support your answer with an example from the case study. Unilever shifted to purchasing sorbitol locally to reduce reliance on Asian imports, supporting over 10,000 smallholder cassava farmers. Through its Shakti programme, Unilever Nigeria also promotes rural inclusivity by incorporating more than 13,000 women and 170 persons with disabilities into its distribution network. The programme also empowers participants through business training and access to micro-finance, supporting entrepreneurship in underserved communities. The organisation has partnered with Wecyclers to collect over 13,000 tonnes of plastic waste since 2014, contributing to circular supply chains via community buy-back centres, incentivised waste collection, and consumer education campaigns. Unilever’s shift to local sourcing required change management in its supply network. Identify one major change implemented by Unilever in Africa and explain how this change was managed to ensure supplier compliance or development. Support your answer with an example from the case study. In terms of operational efficiency, Unilever Nigeria implements Systems, Applications, and Products in Data Processing (SAP) Economic Order Quantity (EOQ), and Just-in-Time (JIT) models to manage inventory, reduce costs, and enhance supplier responsiveness. Consider Unilever's relationship with Psaltry International in Nigeria in terms of whether it is transactional, collaborative, or strategic, and discuss how Unilever develops or supports Psaltry. Comment on how the nature of this supplier relationship reflects Unilever’s overall supplier relationship strategy in Africa. Classify Mpact, Unilever’s South African packaging supplier, into one of the quadrants of the Supplier Preferencing Model. Justify your answer using evidence from the case study These systems are supported by predictive analytics and demand forecasting tools that improve purchasing planning and production scheduling. Supplier relationships are further strengthened through strategic outsourcing, cross-functional coordination, and capacity-building, with an emphasis on supplier diversity by onboarding micro and small enterprises and helping them meet Unilever’s sustainability standards. Additionally, Unilever Nigeria participates in the development of agro-processing hubs to strengthen backward integration and local sourcing. Unilever’s shift to local sourcing required change management in its supply network. Identify one major change implemented by Unilever in Africa and explain how this change was managed to ensure supplier compliance or development. Support your answer with an example from the case study. To enhance agricultural quality and traceability, Unilever provides training on good agricultural practices (GAP), integrated pest management, soil health, and climate-resilient farming. Consider Unilever's relationship with Psaltry International in Nigeria in terms of whether it is transactional, collaborative, or strategic, and discuss how Unilever develops or supports Psaltry. Comment on how the nature of this supplier relationship reflects Unilever’s overall supplier relationship strategy in Africa. Classify Mpact, Unilever’s South African packaging supplier, into one of the quadrants of the Supplier Preferencing Model. Justify your answer using evidence from the case study These efforts are aligned with the Roundtable on Sustainable Palm Oil (RSPO) and Global Food Safety Initiative (GFSI) standards. Furthermore, Unilever’s sourcing strategy is informed by academically grounded research on crop varietals and post-harvest loss reduction conducted by institutions such as the National Root Crops Research Institute (NRCRI), the National Horticultural Research Institute (NIHORT), and the Nigerian Stored Products Research Institute (NSPRI). Ghana Benso Oil Palm Plantation (BOPP) and Serendipalm supply palm oil that is used for food and personal care products, for example soaps and margarine. These suppliers align with Unilever’s commitment to ethical sourcing by promoting sustainable agricultural practices and engaging smallholder farmers to ensure that palm oil production meets recognised environmental and social standards. Unilever Ghana also collaborates with community-based organisations and partners with NGOs to promote agroforestry and support certification under the RSPO. A noteworthy achievement includes its support for Twifo Oil Palm Plantation in obtaining RSPO certification – an initiative that underscores Unilever’s dedication to traceability, biodiversity protection, and responsible agricultural growth. Unilever has shifted its sourcing strategy to increase reliance on African suppliers to manage risk. Identify two sourcing risks Unilever aimed to reduce and explain how the sourcing strategy addressed each risk using examples from the case study. The certification process provided targeted training in land-use planning, high conservation value (HCV) assessments, and sustainable harvesting techniques. Beyond certification, Unilever Ghana integrates its sourcing efforts with broader national priorities under the African Continental Free Trade Area (AfCFTA), advocating for Ghana’s strategic position in palm oil production based on its favourable climate, land availability, and skilled labour base. Through AfCFTA, the organisation aims to improve regional trade flows, reduce logistical inefficiencies, and expand local sourcing. Operationally, Unilever supports supplier development by working with local agro-processors, technical training institutions, and research bodies to strengthen agricultural productivity, reduce post-harvest losses, and modernise storage infrastructure. These collaborations include training on GAP, organic inputs, and pest management to ensure alignment with global quality and safety standards. As in Nigeria, Unilever Ghana’s supplier development includes training in GAP, but with a stronger focus on organic inputs and pest management suited to palm oil production systems. Unilever has shifted its sourcing strategy to increase reliance on African suppliers to manage risk. Identify two sourcing risks Unilever aimed to reduce and explain how the sourcing strategy addressed each risk using examples from the case study. Unilever Ghana’s commitment to sustainability also extends into circular economy practices, like Nigeria’s Wecyclers partnership, by working with local actors to strengthen plastic waste recovery, support community buy-back initiatives, and promote awareness around responsible disposal. Inclusivity remains a central pillar of its strategy, reflected in the rural deployment of the Shakti programme, similar in structure and purpose to the initiative in Nigeria, which empowers women entrepreneurs through product distribution, business training, and micro-finance access. Internally, the organisation fosters ethical labour practices, gender equity, and skills development within its supply and production functions. Through sustained engagement in industry roundtables and multi-stakeholder platforms, Unilever Ghana contributes to shaping national policy, advancing sustainable sourcing and supply chain resilience across West Africa. Kenya Kenya is a critical hub for Unilever’s tea supply. Unilever has shifted its sourcing strategy to increase reliance on African suppliers to manage risk. Identify two sourcing risks Unilever aimed to reduce and explain how the sourcing strategy addressed each risk using examples from the case study. Sasini PLC and the Kenya Tea Development Agency (KTDA) supply tea used in Lipton and other Unilever brands. In line with its global commitment to supply chain transparency, Unilever publicly disclosed its list of tea suppliers, including those in Kenya, to support traceability, accountability, and ethical sourcing practices. This initiative is complemented by Unilever Kenya’s use of SAP’s Advanced Planning Optimiser and dynamic replenishment systems, like the digital inventory and purchasing tools deployed in Nigeria, though here applied specifically to tea sourcing and distribution. These digital tools enhance supply responsiveness by integrating real-time data sharing – a capability also present in Nigeria, where SAP and predictive analytics support inventory and production planning. To support agile purchasing and supplier performance, the organisation applies early supplier involvement (ESI) and supply network collaboration (SNC), fostering innovation and long-term alignment with sourcing objectives. As a founding member of the Ethical Tea Partnership, Unilever Kenya has contributed to labour rights reform and environmental compliance across tea plantations in East Africa. It supports fair wages, safe working conditions, and gender-responsive policies while also advocating for stronger labour protections through dialogue with agricultural policymakers. Unilever Kenya invests significantly in farmer development. Like in Nigeria and Ghana, Unilever Kenya provides training in GAP; however, its programmes are specifically adapted to the needs of tea growers, placing greater emphasis on soil conservation, organic fertiliser use, and low-chemical inputs. Delivered through partnerships with NGOs, agricultural experts, and community groups, these initiatives are aimed at improving productivity and environmental sustainability. The organisation also pursues carbon reduction across its supply chain by adopting energy-efficient technologies and low-emission transport methods. To enhance ecosystem conservation, Unilever Kenya supports landscape restoration projects in key tea-growing regions like Kericho, including reforestation, rainwater harvesting, and agroforestry. These projects are designed to preserve biodiversity and improve watershed resilience. Classify Mpact, Unilever’s South African packaging supplier, into one of the quadrants of the Supplier Preferencing Model. Justify your answer using evidence from the case studyThe organisation is also piloting digital agriculture solutions – such as mobile advisory services, geospatial farm mapping, and digital traceability tools – to expand farmer access to information and ensure visibility across the supply chain. In alignment with its broader inclusion agenda, Unilever Kenya supports women and youth participation in value chain activities. Through collaborations with cooperatives and development partners, the organisation promotes entrepreneurship and financial inclusion among marginalised groups. By integrating technological innovation, sustainability practices, and inclusive development, Unilever Kenya is building a transparent and future-oriented supply system that contributes to long-term regional growth. South Africa Nampak and Mpact are key packaging suppliers providing cartons, plastic bottles, and biodegradable materials, which is used for packaging food and household products. Unilever collaborates with these suppliers to innovate sustainable packaging solutions. These efforts support the organisation’s broader goals of reducing its environmental footprint by exploring alternative materials, improving recyclability, and minimising reliance on virgin plastic. Beyond packaging, Unilever plays a significant role in South Africa’s economy. According to Kapstein (2025), the organisation supports more than 100,000 jobs through both direct employment and its extended value chain, contributing approximately 1% to the national GDP. Unilever South Africa promotes inclusive growth by supporting the development of small and medium-sized enterprises, particularly those owned by historically disadvantaged groups. Through its black economic empowerment (BEE) initiatives, the organisation implements preferential purchasing policies and provides technical support to emerging suppliers to help them meet operational and sustainability standards. To strengthen its agricultural sourcing base, Unilever works with farming communities in provinces such as Limpopo and KwaZulu-Natal to secure locally grown herbs and essential oils. This reflects Unilever’s broader African sourcing strategy, as seen in Nigeria, Ghana, and Ivory Coast – though in South Africa, the focus is on locally grown herbs and essential oils rather than staple food crops. These partnerships aim to commercialise smallholder production by improving access to markets, quality inputs, and agronomic knowledge. Unilever promotes climate-smart agriculture across multiple African operations. In South Africa, this includes efficient irrigation, soil regeneration, and low-emission cultivation systems, distinct from the agroforestry and perennial crop strategies used in Ivory Coast and Kenya. To further integrate sustainability goals, Unilever South Africa incorporates digital technologies to optimise supply chain operations and monitor environmental performance too. Unilever South Africa also uses SAP-integrated systems for purchasing and logistics, consistent with digital approaches in Nigeria and Kenya, although here applied across a more diversified product portfolio, including packaging and personal care. These platforms are aligned with sustainability objectives by enabling real-time monitoring of resource efficiency and environmental impact across purchasing and logistics activities. Ivory Coast Unilever sources cocoa from suppliers such as Cargill and Barry Callebaut. These partnerships adhere to fair labour standards and sustainable sourcing certifications. Cocoa is a critical ingredient in Unilever’s ice cream and confectionery products. In Ivory Coast, the organisation’s sourcing strategy emphasises transparency and accountability by supporting digital traceability systems that track cocoa back to individual farms. This enables more precise monitoring of environmental compliance and labour conditions, ensuring alignment with global ethical standards. To support long-term resilience in cocoa-growing communities, Unilever invests in programmes that strengthen education, health, and economic inclusion. In collaboration with NGOs and local authorities, the organisation has contributed to the development of schools, vocational training centres, and health facilities in rural areas. These initiatives address underlying social vulnerabilities that contribute to child labour and aim to improve livelihoods across farming households. At the production level, Unilever promotes sustainable agricultural practices through its suppliers by encouraging agroforestry, climate-smart farming, and integrated pest management. These practices are central to the Cocoa & Forests Initiative, which seeks to eliminate deforestation and enhance climate resilience in cocoa landscapes. Farmer training in Ivory Coast covers similar ground to GAP initiatives in Nigeria and Kenya, but places added emphasis on agroforestry and cocoa-specific regenerative techniques aligned with the Cocoa & Forests Initiative. Unilever supports women’s empowerment and financial inclusion through farmer field schools and savings groups, a parallel initiative to those in Ghana and Nigeria, though more tightly integrated with community resilience and child labour prevention in cocoa-producing regions. In parallel, the organisation engages in policy dialogue with government stakeholders on issues such as land tenure reform, forest conservation, and price regulation to create an enabling environment for sustainable cocoa production. By combining traceable sourcing, rural development, and advocacy, Unilever is contributing to a more ethical, inclusive, and environmentally responsible cocoa supply chain in Ivory Coast. Sourcing developments and strategic direction for Africa Unilever is increasing its reliance on African suppliers to moderate currency fluctuations and supply chain disruptions. The organisation is actively shifting purchasing from Asia to Africa to mitigate currency volatility and supply chain disruptions. This includes increased local sourcing of sorbitol, spices, and packaging materials. Procurement Magazine (Collins, 2023) echoes that the organisation specifically aims to reduce costs associated with international shipping and currency fluctuations by leveraging Africa’s growing manufacturing sector. The move also fosters greater self-sufficiency and economic empowerment across African markets. Other multinational organisations like Nestlé and Danone are now following Unilever’s lead by expanding their supplier base within Africa, strengthening the continent’s role in the global supply chain. This shift aligns with Unilever’s broader vision of supply chain transformation through the Responsible Sourcing Programme, which governs ethical, environmental, and operational standards across all supplier engagements. Under the Responsible Partner Policy (RPP), African suppliers are evaluated using the Unilever Supplier Qualification System (USQS), which assesses readiness in areas such as labour rights, environmental impact, and long-term value delivery. These frameworks ensure that localisation efforts do not compromise on global standards, while offering African suppliers structured support to meet mandatory and aspirational benchmarks. Unilever’s Living Wage Promise, a cornerstone of its responsible sourcing model, reinforces income equity by committing that 50% of its global purchasing will be directed to suppliers paying a living wage by 2026. In Africa, where agricultural and manufacturing workers often face income instability, this pledge supports dignified livelihoods in critical sectors such as tea, palm oil, herbs, and packaging. Collaborations with partners such as IDH and the WageIndicator Foundation enable localised implementation through wage data analytics, training tools, and compliance monitoring mechanisms tailored to regional realities. Unilever’s sourcing direction is also informed by its sustainability transformation agenda, which encompasses regenerative agriculture, circular packaging systems, and climate resilience. Although regenerative pilots are more mature in Europe, Asia, and the Americas, the global ambition to transition one million hectares to regenerative practices by 2030 holds substantial relevance for African production zones in Kenya, Nigeria, Ghana, and South Africa. In these countries, Unilever’s regenerative goals are applied through initiatives supporting soil restoration, biodiversity, and improved farmer incomes, in line with broader climate risk mitigation strategies. Complementing agricultural reforms are packaging innovations aimed at reducing plastic waste and improving resource efficiency. These include local partnerships for plastic recovery and recycling, reusable packaging pilots, and systems that track environmental performance across supplier networks. By integrating sustainability into its sourcing models, Unilever not only responds to global ESG (Environmental, Social, and Governance) expectations, but also strengthens its long-term resilience in African markets. Conclusion Unilever’s supplier relationship management strategy in Africa is rooted in sustainability, localisation, and long-term partnership. Through deliberate efforts to source regionally, empower smallholder farmers, adopt climate-resilient practices, and integrate suppliers into global quality and ethical frameworks, Unilever has positioned itself as a leader in inclusive supply chain development. The organisation’s investments in technology, traceability, capacity building, and fair compensation systems reflect a strategic vision that balances operational performance with social responsibility. In doing so, Unilever not only enhances its competitive advantage, but contributes meaningfully to economic empowerment, environmental stewardship, and supply chain resilience across the African continent.