MNP3703 2025 ASSIGNMENT 2 SEM 2 2025 MNP3703 2025
DISCLAIMER
THE DOCUMENT PRESENTED IS A DEMOSTRATION ON HOW STUDENTS CAN
APPROACH THE ASSIGNMENT FOR MNP3703. IT IS BASED ON PRESCRIBED MATERIAL
AND EXTERNAL RESEARCH. THE DOCUMENT CONTAINS BOTH SHORT NOTES AND A
RESPONSE EXAMPLE FOR EACH QUESTION. STUDENTS ARE THEREFORE ADVISED NOT
TO COPY AND PASTE BUT USE THE DOCUMENT AS A RESEARCH GUIDE THAT WOULD
HELP THEM DRAFT THEIR OWN FINAL COPIES.
,MNP3703 2025 ASSIGNMENT 2 SEM 2 2025 MNP3703 2025
Introduction
Unilever’s sourcing and supplier relationship strategies in Africa reflect a careful balance
between global efficiency and local responsiveness. The company demonstrates how
multinational corporations can enhance competitiveness, mitigate risks, and foster
inclusive growth by actively investing in the development of local suppliers. Case studies
such as Psaltry International in Nigeria and Mpact in South Africa highlight how Unilever’s
supplier relationships can progress from simple transactional interactions to more
collaborative and strategic partnerships that support broader business and sustainability
objectives. Additionally, Unilever’s efforts to localise sourcing across African markets
underscore its focus on effective risk management, structured change implementation,
and ensuring supplier compliance, exemplifying a cohesive supply chain strategy that
integrates operational performance with developmental impact.0717513144
Question 1 (6 marks)
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.
Unilever’s Strategic Partnership with Psaltry International in Nigeria
Unilever’s relationship with Psaltry International can be best described as a strategic
partnership. Unlike transactional relationships that are centred on cost and delivery, this
partnership reflects deep integration, trust, and mutual long-term commitment. Unilever
deliberately invests in Psaltry’s development to ensure stability in its supply chain while
simultaneously driving sustainable development in local Nigerian communities. This
relationship illustrates how multinational corporations can strategically embed local
suppliers into their global value chains to enhance resilience, sustainability, and shared
prosperity.
How Unilever Develops and Supports Psaltry International
, MNP3703 2025 ASSIGNMENT 2 SEM 2 2025 MNP3703 2025
Local Sourcing Shift
Unilever made a deliberate shift from relying on imported sorbitol from Asia to sourcing
locally from Psaltry. This move reduced exposure to currency volatility, supply chain
disruptions, and long lead times associated with overseas sourcing (Lysons and
Farrington 2020). By anchoring supply locally, Unilever simultaneously strengthens
Psaltry’s market position and advances Nigeria’s broader goal of economic self-
sufficiency. This shift demonstrates the principle of backward integration, where large
firms secure critical inputs locally to mitigate risk and create shared value (Monczka et al.
2021).
Farmer Empowerment and Inclusivity
Unilever extends its social sustainability agenda through Psaltry by reaching more than
10,000 smallholder cassava farmers. This is further complemented by its Shakti
programme, which integrates over 13,000 women and 170 persons with disabilities into
the distribution network. These groups are provided with micro-finance access,
entrepreneurial training, and ongoing mentorship to support income generation (Unilever
2022). Such initiatives reflect supplier diversity principles and social inclusivity models in
supply chain management, where marginalised groups are actively included in value
chains to promote equity and local development (Lysons and Farrington
2006).0717513144
Operational and Technological Enhancement
Unilever assists Psaltry with operational improvements by implementing advanced supply
chain technologies such as SAP Economic Order Quantity (EOQ) systems and Just-in-
Time (JIT) inventory models. These tools help minimise waste, reduce inventory costs,
and improve responsiveness to fluctuating demand. Digital tools such as predictive
analytics and demand forecasting further enhance Psaltry’s ability to align supply with
Unilever’s needs (Handfield et al. 2019). This demonstrates the transition from traditional
procurement to a strategic supply chain partnership underpinned by innovation and
information sharing.
DISCLAIMER
THE DOCUMENT PRESENTED IS A DEMOSTRATION ON HOW STUDENTS CAN
APPROACH THE ASSIGNMENT FOR MNP3703. IT IS BASED ON PRESCRIBED MATERIAL
AND EXTERNAL RESEARCH. THE DOCUMENT CONTAINS BOTH SHORT NOTES AND A
RESPONSE EXAMPLE FOR EACH QUESTION. STUDENTS ARE THEREFORE ADVISED NOT
TO COPY AND PASTE BUT USE THE DOCUMENT AS A RESEARCH GUIDE THAT WOULD
HELP THEM DRAFT THEIR OWN FINAL COPIES.
,MNP3703 2025 ASSIGNMENT 2 SEM 2 2025 MNP3703 2025
Introduction
Unilever’s sourcing and supplier relationship strategies in Africa reflect a careful balance
between global efficiency and local responsiveness. The company demonstrates how
multinational corporations can enhance competitiveness, mitigate risks, and foster
inclusive growth by actively investing in the development of local suppliers. Case studies
such as Psaltry International in Nigeria and Mpact in South Africa highlight how Unilever’s
supplier relationships can progress from simple transactional interactions to more
collaborative and strategic partnerships that support broader business and sustainability
objectives. Additionally, Unilever’s efforts to localise sourcing across African markets
underscore its focus on effective risk management, structured change implementation,
and ensuring supplier compliance, exemplifying a cohesive supply chain strategy that
integrates operational performance with developmental impact.0717513144
Question 1 (6 marks)
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.
Unilever’s Strategic Partnership with Psaltry International in Nigeria
Unilever’s relationship with Psaltry International can be best described as a strategic
partnership. Unlike transactional relationships that are centred on cost and delivery, this
partnership reflects deep integration, trust, and mutual long-term commitment. Unilever
deliberately invests in Psaltry’s development to ensure stability in its supply chain while
simultaneously driving sustainable development in local Nigerian communities. This
relationship illustrates how multinational corporations can strategically embed local
suppliers into their global value chains to enhance resilience, sustainability, and shared
prosperity.
How Unilever Develops and Supports Psaltry International
, MNP3703 2025 ASSIGNMENT 2 SEM 2 2025 MNP3703 2025
Local Sourcing Shift
Unilever made a deliberate shift from relying on imported sorbitol from Asia to sourcing
locally from Psaltry. This move reduced exposure to currency volatility, supply chain
disruptions, and long lead times associated with overseas sourcing (Lysons and
Farrington 2020). By anchoring supply locally, Unilever simultaneously strengthens
Psaltry’s market position and advances Nigeria’s broader goal of economic self-
sufficiency. This shift demonstrates the principle of backward integration, where large
firms secure critical inputs locally to mitigate risk and create shared value (Monczka et al.
2021).
Farmer Empowerment and Inclusivity
Unilever extends its social sustainability agenda through Psaltry by reaching more than
10,000 smallholder cassava farmers. This is further complemented by its Shakti
programme, which integrates over 13,000 women and 170 persons with disabilities into
the distribution network. These groups are provided with micro-finance access,
entrepreneurial training, and ongoing mentorship to support income generation (Unilever
2022). Such initiatives reflect supplier diversity principles and social inclusivity models in
supply chain management, where marginalised groups are actively included in value
chains to promote equity and local development (Lysons and Farrington
2006).0717513144
Operational and Technological Enhancement
Unilever assists Psaltry with operational improvements by implementing advanced supply
chain technologies such as SAP Economic Order Quantity (EOQ) systems and Just-in-
Time (JIT) inventory models. These tools help minimise waste, reduce inventory costs,
and improve responsiveness to fluctuating demand. Digital tools such as predictive
analytics and demand forecasting further enhance Psaltry’s ability to align supply with
Unilever’s needs (Handfield et al. 2019). This demonstrates the transition from traditional
procurement to a strategic supply chain partnership underpinned by innovation and
information sharing.
