PROBLEMOVERVIEW

PROJECTMETHODOLOGY

PROJECTIMPLEMENTATION

PRODUCT&ACHIEVEMENT

DepartmentofIndustrialSystemsEngineeringandManagement

Route-To-Market Strategy for Unilever eCommerce in Southeast Asia

IE3100RSystems DesignProjectTeamMembers:ChristianHadi Wijaya |FuXin|LiShuyuan |PanYiwei |WuJingwei

SupervisingProfessors:Asst ProfTANChinHon|Asst ProfYEZhi ShengUnileverSupervisor:Mr.KaranBhadwajCourseCo-ordinator:Dr.BokShung Hwee

PROBLEMDESCRIPTION ECOMMERCESUPPLYCHAINSTAKEHOLDERS OBJECTIVES

STEP1:MARKETEVALUATION(COUNTRY)

02 Market Evaluation

03 Cost Model Development

01 Stakeholder Engagement

PROBLEMDESCRIPTION

STEP2:MARKETEVALUATION(MARKETPLACE)

Decision Making Framework

Cost

Decision Programming Language (DPL)

Tornado Diagram

Benefit

Analytic Hierarchy Process (AHP)

An integrated decision-making platformEfficient Frontier

05 Integrated Analysis

06 Data Visualisation

04 Vendor Selection

DynamicAssumption

AHPResult

FinalDecision

DPLResult

DPL Data Entry AHP DataEntry

COUNTRY

5C ANALYSIS

CONTEXT

COMPETITORCUSTOMER

COLLABO-RATOR

* Data presented on this poster are fabricated for demonstration purpose only.

STEP3-5:TECHNICALANALYSIS

STEP6:DATAVISUALISATION

Rainbow Diagram Influence Diagram Decision Tree

01

02

03

04

Business PlanningDetermine the optimal product mix by analysing the impact of changing the input variables on the values of important output variables

Input Variables1. Basket Size: average sales value

per order2. Revenue/Kg3. Items/OrderOutput Variables1. Absolute Supply Chain Cost2. Supply Chain Cost as % of Sales

Value3. Gross Margin

Criteria Description Remark

PracticalityDashboard is regarded practical by the company, as it is easy to learn and fast in obtaining the required data ✓

WorkabilityDashboard display the results in a user-friendly way such that information is both easy to acquire and analyse ✓

FlexibilityDashboard can be further developed to include additional features like Tornado Diagram to show sensitive factors. It can also include the result from Analytic Hierarchy Process

✓

Availability of required data

Dashboard requires less time and cost to gain access to desired data as it could be linked to Unilever’s eCommerce system ✓ Dynamic Decision Making Tool

VALIDATIONOFPROPOSEDAPPROACH

Detailed eCommerce Market Analysis Comprehensive Decision Making Framework

With increased retail demand for fast-moving consumer goods online, Unilever is considering venturing into eCommerce market as a new breakthrough to target end consumers.

BRICK & MORTAR STORE ONLINE MARKETPLACES

This project aims to develop a Route To Market (RTM) strategy for key eCommerce channels in various Southeast Asian markets.

• Support & Internal Alignment

• Owner of data

• Manage site merchandising

• Customer service

• Purchase inventory from Unilever

• Manage inventory

• Manage warehouse

• Last mile delivery

• Pick, pack & sort items

1 Design an integrated framework to facilitate the eCommerce supply chain decision-making for Unilever stakeholders in Southeast Asia. Decisions to be made are:

2 Improve the user experience of the decision-making tool by taking into account Unilever’s priorities

Supply chain operating model

Supplier & local partnership

eCommerce product portfolio

Partner marketplaces

Pioneer country to enter

Establishing End-to-end (E2E) eCommerce strategy is a complex procedure especially in Southeast Asia where the market is fragmented.

Entire has been broken down into components and approached from quantitative and qualitative perspectives.

Identify key countries and marketplace platforms with detailed research

Conduct extensive stakeholder engagement to collect data across the company

Propose Route To Market (RTM) channels to the firm and establish cost model

Develope succinct dashboard with aggregated statistics and tableau for deeper analysis

Utilize AHP to generate effective rating matrix for vendor selection process

Integrate quantitative model and AHP matrix for cost-benefit analysis. Provide insights for further development

§ Identify which country is ready to access the eCommerce market.

§ E.g Indonesia has the largest population, internet users and digital consumers in SEA.

• Benchmark the country withother countries in SEA regarding eCommercepotential

• E.g Indonesia is an economically powerful country and has the second largest proportion of young netizens.

• Analyse other FMCG’s market portfolio and product portfolio in SEA.

• E.g Unilever has a strong market position across FMCG products in SEA, and has the strongest market portfolios in Indonesia.

• Analyse target consumersegment and understandcustomer behaviour in thecountry.

• E.g Indonesia has 70% mobile devices access and 93% of mobile Facebook users.

• Determine the distributors or partners that Unilever can collaborate with in the country

• E.g agencies such as aCommerce or Fulfillment By Lazarda.

Based on 5C framework, Indonesia has been identified as pilot market for Unilever to enter in Southeast Asia. The same framework can be applied to analyse other countries in the future.

Business Model Daily Unique Visitors

Product Variety Market Share

In Indonesia, eCommerce marketplaces are fragmentedwith multiple players sharing the market.Quantitative & qualitative evaluations are used to selectthe suitable marketplaces for Unilever’s products. Keyevaluating criteria is:

Determine the most sensitive variable

Determine the decision reversal point when vary the values of uncertain variables

Map out relationships between decisions, certain and uncertain variables

Outline all possible outcomes of uncertain variables and their resulting costs

Ratings Approach: Set up rating system using Saaty’s 9-point scale

Stakeholders can set up scale according to their own preference

Develop deep understanding of Unilever product, priorities, eCommerce capabilities; establish customisedframework to address the concerns

Divide the framework into two major components: cost and benefit; use professional analytics tools DPL and AHP for comprehensive evaluation

Generate specific and relevant diagrams and indicators to facilitate the decision making process

Achieve final decision recommendation by integrating the costs and benefits to determine which alternatives should and not be considered.

DECISIONMAKINGPROCESS:

Decision Tool User Interface Determine Optimal Variable Mix

PROJECTDELIVERABLES