Unilever PH beefs up value chain
The Rosevale students and their parents and grandparents were glad to hear that the Philippines is finally catching up with the rest of its neighbors in becoming a First World country in the next 20 years or so. This happy happening is coinciding with another global development favorable to the present and future generations of Filipino youth. The epicenter of the world’s economy is shifting to Asia in which our country is very strategically located at the very center of East Asia. Whereas the 20th century was known as the American Century, the 21st is the Asian century. More strictly, the 20th century was characterized by a three-way competition among the three largest economic powers at that time: the US, Japan and Europe. In fact, when I was studying in the United States in the late 1950s and early 1960s, I read many publications about the possibility that Japan would be “Number One” surpassing the US in economic might. It never happened because of the demographic crisis that befell Japan. But there was no question about how Japanese industries were threatening their US counterparts because of higher productivity. Then the European Union gave a big boost to the strong recovery of this third world power.
Today, these former economic behemoths are struggling to grow at more than 3% annually in GDP while Asia is still growing on the average at 5% to 6%, with a few of them like India, the Philippines, Myanmar, and Vietnam able to post 7% or more. As the Philippines moves towards upper middle income and high-income categories over the next 20 years, there will be also a trilateral competition among the biggest economies of China, India and the ASEAN Economic Community (AEC, which will resemble the European Union of the last century). Among the ten nations of AEC, the Philippines is fortunate to be among the three most promising economies in Southeast Asia: the VIP nations (Vietnam, Indonesia and the Philippines). These three are the only large economies that have a young and growing population in contrast with most of the countries in Asia that are already suffering from demographic suicide (including China whose one-child policy in the past has resulted in a rapidly ageing population). Another tragic example is Thailand that is still a relatively poor country but is already suffering from a serious shortage of manpower because of very low fertility rates. It is the first economy in Asia to grow old before becoming rich. I cited all these data in my talk because I wanted to encourage the young people present who will be the future parents to target, as much as possible, at least
Unilever Philippines has strengthened its value chain with the full commercial operation of its largest distribution center in the country located in its 13.7hectare facility in Cabuyao, Laguna.
“Unilever is embarking on a bold transformation journey to significantly grow our business, while ensuring our brands reach millions of Filipinos,” explained Unilever Philippines Vice President for Supply Chain Marika Lindstrom at the recent opening of the facility with regional Unilever officials and heads of the local government unit of Laguna.
The distribution facility is part of the 100 million euros (R6 billion) investment of Unilever in the Philippines over the next six years, which was first announced in 2015.
The distribution center is an essential component to realize Unilever Philippines’ objective of sustaining its growth in the personal care, foods, home care, and refreshments categories. As such, ensuring the steady supply and flow of goods is vital to meeting the needs of the market.
The facility is also part of the company’s response to the growing market demand which allows to accelerate delivery of goods, create economies of scale, and generate local jobs across the whole supply chain.
It serves as the distribution and transport hub for products from all its manufacturing sites potentially generating more than 10,000 jobs nationwide.
The mega distribution center is expected to facilitate distribution and transport of Unilever’s products from its manufacturing sites in Cavite and Paco, Manila, which are 33 kilometers and 35 kilometers away from the center, respectively. The distribution center’s location is also accessible to alternative ports in Batangas for vessels heading to Visayas and Mindanao, avoiding potential delays as a result of congestion in Manila’s ports.
The center showcases future-ready facilities to ensure efficient and sustainable operations. It is being constructed to house 130,000 pallets and 97 loading docks. It also has paperless warehouse management systems and safety-compliant storage systems. Moreover, the mega distribution center’s design and technology will use materials intended to reduce environmental impact.
The facility also boasts state-of-theart technology that fully embraces the company’s commitment to the Unilever Sustainable Living Plan. The amenities and offices are designed for future-ready capabilities to ensure efficient and sustainable operations, including paperless warehouse management systems, safety-compliant storage systems, and systems intended to reduce environmental impact.
Unilever President for Southeast Asia and Australasia Pier Luigi Sigismondi, who was present at the launch of the mega distribution center, stated, “What we unveil today is not only a future-ready infrastructure to facilitate delivery of goods, but a story of well-loved brands with a deeper societal purpose.”
“We wish to continue to be part of reforms that build entrepreneurs, grow businesses, and uplift the quality of life of the Filipinos. Unilever Philippines remains your partner in nation-building and progress,” continued Sigismondi.
With Cabuyao’s fast development into becoming one of the country’s industrial hubs, opening a green distribution center is a learning experience for the city into incorporating it in the future businesses that they engage with. Aside from the generated jobs and income, longevity and environmental impact are now part of the considerations. The facility has inspired Cabuyao to facilitate incentives for sustainable businesses.