**Las Vegas**: Unilever’s ice cream division is integrating artificial intelligence to improve forecasting, inventory management, and logistics, as outlined by executive Sandeep Desai. The company aims for fully automated warehousing and anticipates a spin-off by 2025 to drive further efficiencies and growth.
Unilever is advancing its ice cream supply chain by integrating artificial intelligence (AI) to enhance forecasting, inventory management, and last-mile delivery efficiency. This initiative was outlined by Sandeep Desai, the Executive Vice President and Chief Product Supply Chain Officer for Unilever’s ice cream segment, during his address at the Manifest 2025 conference in Las Vegas.
Desai explained that the company is employing AI technology not only for better demand forecasting based on weather data but also to optimise production at its factories. This approach aims to streamline operations and improve responsiveness to market needs.
The incorporation of AI extends to the deployment of connected sensors in freezer cabinets, allowing for real-time inventory updates. Desai noted that these advancements are crucial for providing enhanced visibility throughout the final delivery phase, which involves transporting goods from distribution centres to retail freezers.
Despite the benefits of such technology, Unilever faces challenges in implementing cost-effective tracking solutions. Desai pointed out that while high-value items, like diamonds, can warrant substantial investments in tracking technology, the ice cream sector operates on tighter margins, necessitating a focus on affordability.
Logistical management also remains a significant hurdle for Unilever, which utilises a combination of large trucking carriers and independent operators. Desai commented on the advances made in ocean freight tracking, stating that improvements are still needed for trucking logistics, where visibility is often limited compared to maritime transport.
Continued exploration and implementation of new technologies are critical for Unilever’s strategy, according to Desai. He expressed optimism that operational costs will decrease as the company refines its AI and machine learning capabilities for demand planning.
In addition, Unilever is pursuing increased automation in its warehousing operations. The company has already initiated the use of highly automated “dark” warehouses, where technologies such as drones operate stock management autonomously. Currently, 10% of Unilever’s ice cream warehouses function in this automated capacity, with plans to expand this model in the coming years. “My vision is all warehouses should be 100% dark,” Desai stated, highlighting the push for greater automation especially in cold chain logistics, which faces ongoing labour shortages in low-temperature environments.
Further to these innovations, Unilever’s ice cream segment is poised for a spin-off from the parent company by the end of 2025. This strategic move is anticipated to enhance supply chain efficiencies, amid a reported 3.7% growth in underlying sales for 2024, propelled by continuous innovation and operational enhancements.
Source: Noah Wire Services
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