Unilever has partnered with professional services firm PwC to enhance the competitiveness of its transport sourcing through the development of a data-driven technology platform and a game theory-based procurement approach. The collaboration aims to identify savings opportunities in the complex logistics operations required to move Unilever’s wide range of consumer products globally.

Operating in 190 countries and navigating thousands of delivery routes, Unilever faces significant challenges in managing haulage costs. PwC worked closely with the company to benchmark transport expenses across different markets, enabling Unilever’s procurement teams to compare their route-specific costs against global market rates. This visibility allowed the company to pinpoint where prices deviated from benchmarks and to understand the varying factors influencing transport costs in distinct regions.

In India, the logistics market is highly fragmented, characterized by networks of brokers connecting customers to numerous small freight providers, some owning only one or two trucks. This fragmentation has historically made it difficult for Unilever to establish reliable cost benchmarks. Meanwhile, in Brazil, economic factors such as high inflation and financing costs have induced retailers to minimize stock levels. As a consequence, Unilever often experiences concentrated surge demand towards the end of each month, forcing it to secure immediate transport capacity—sometimes at rates less favorable than those previously negotiated.

Building upon these insights, PwC assisted Unilever in restructuring its haulage contract tendering process. By integrating enhanced data analytics with sourcing technology and applying principles of game theory, the buying process was designed to encourage stronger competition among suppliers, incentivizing improved bids. This approach was applied in a United States tender exercise involving thousands of routes and complex delivery requirements, where it yielded measurable savings.

PwC directors leading the project highlighted the importance of linking detailed cost benchmarking with an optimized sourcing strategy to unlock value. The technology platform not only improved transparency but also established a consistent, repeatable method for measuring procurement performance. Unilever’s teams have embedded the tool into their ongoing processes, using it as a trusted mechanism for evaluating and enhancing transport sourcing efficiency.

The combined effort underscores the complexities multinational companies face in logistics management and illustrates how technology-enabled contract design can drive cost competitiveness across diverse global markets.