Digitalization and AI Drive Unilever Productivity

Unilever’s Mannheim Germany facility supplies Dove soap bars to more than 50 countries. It’s part of a network that ensures the products reach consumers across the globe. The factory implements programs and innovations to continually improve Dove Bar quality worldwide. As one of Unilever’s largest distribution centers, it’s capable of shipping 320,000 pallets (over 60 million units) a year.

“This global powerhouse is setting the pace for operational excellence,” says Factory Director Silvia Rissel. “By deploying cutting-edge technologies, we’re continually improving productivity and efficiency. We’re able to respond to shifts in customer and consumer demand, equip our workforce with digital skills and limit our impact on the environment.”

The manufacturing site at Mannheim is one of four sites supplying Dove Bars to customers all over the world. These sites share data in real-time through digital twin technology, enabling Unilever to build a smarter, faster and more efficient global operation.

A Leaner, More Efficient Facility

According to Unilever, the Mannheim Dove Bar process always operated 24/7, through automation and digitization. But the factory team is leaner and more efficient. Digitization enables Unilever to continually improve overall equipment effectiveness (OEE), a measure of manufacturing productivity and efficiency.

For example, Unilever uses digital technology to count the number of Dove bars on the production line and compare it with the number of boxes feeding into the packaging lines. Before the stock on the line runs out, it automatically calls for more packaging to be brought to the line. As well as being highly efficient, this ensures accurate tracking and management of stock.

Unilever recently made significant investments in the factory’s production lines to expand capabilities and support future growth, and in on-site solar power to improve energy efficiency. It also redesigned packing lines to supply Dove bars in 100% paper packaging, saving around 500 tons of plastic every year.

Implementing AI

Taking innovation a step further, Unilever is piloting AI-enabled cameras to automate quality checks. They can inspect 800 bars a minute and will go into operation later this year.

The Mannheim site is also home to one of Unilever’s largest distribution centers. It houses a cutting-edge warehouse management system that automatically manages and tracks all materials, with minimal operator input. With a storage capacity of over 36,000 pallets, the center delivers finished goods from 30 plants across Europe. At full capacity, it’s capable of picking 4 million cases (24 million units) and shipping 320,000 pallets (over 60 million units) a year.

Moreover, with a 99.8% customer case fill on time (CCFOT) rate, the center helps ensure in-store product availability. According to Unilever, the industry standard for CCFOT varies, but a benchmark is around 95%. This metric measures the reliability of delivering the correct quantity of products to customers within the agreed timeframe. Achieving high CCFOT rates is crucial to delivering to consumers the products they want, when they want them.

What’s Next? ‘Layer Picking!’

The distribution center already responds quickly to peaks in customer orders. But Unilever is investing in a “layer picking” operation to react even faster. It uses automation to pick full layers of products from pallets instead of individual cases or units. Due to be fully operational in 2026, it will increase picking capacity by 50% during peak seasons and generate yearly savings of over €1 million, according to the company.

“We’re accelerating digitization and new technologies across our operations to enhance productivity and deliver products quicker, with the same unmissable quality that our consumers have come to trust,” says Rissel. “With initiatives like plastic-free products, solar energy and apprenticeships fostering young local talent, there’s a bright future for our manufacturing site at Mannheim.”