Unilever restates commitment to backward integration through ‘Partner to Win’ initiative

Unilever Nigeria has restated its commitment to the Federal Government’s backward integration policy through its ‘Partner to Win’ initiative targeted at increasing the organisation’s local input sourcing.

The Partner to Win project is Unilever’s initiative geared towards investing in capabilities of intermediary companies that are key strategic suppliers to the organisation. It is also aimed at enabling them to process farm produce to usable goods that will be sourced by the company as part of its raw materials, locally.

Speaking at the Manufacturing and Equipment Expo/ Nigerian Raw Materials Expo, Thomas Mwanza, procurement director, Unilever-West Africa, gave examples of steps taken by the organisation to achieve this drive in packaging and agro-based materials.

“Already, Unilever has achieved over 90 percent in local sourcing of packaging materials. The aim is to achieve 100percent by the end of 2019 and overcome the current challenges of local vendors’ capacity to meet up with global best standards.

“In agro-allied sector, Unilever is partnering with intermediary companies for the supply of cassava and starch,” Mwanza said.

Providing the motivation for this decision, the procurement director said the backward integration programme of the Federal Government was a sound policy and that Unilever was committed to it.

“We have found strong connections between this policy and our business model. This has spurred us to enhance our local sourcing capabilities that we have embarked on for about a decade.”

Speaking on the economic benefits of aligning with the government on this strategy, Mwanza said, “By working with the intermediary companies to source these materials, we are contributing to up-scaling the technical skills required for sustainable commercial farming in Nigeria.

“We are also investing in the production of palm oil for use in BlueBand and soaps, and exploring local production of herbs and spice for our seasoning cubes. We believe that our partnership with these investors will not only create jobs within the agriculture sector but also provide support that will enhance their technical know-how and skills.”

He noted that the ability of the local suppliers to meet international standards for such materials and the possibility of locally produced goods being more expensive than imported goods were key challenges the company was facing.

He pointed out that it was not a deterrent factor but an opportunity to help the organisation scale up its skills and compete at the international level.

“Our motivation and commitment to operate sustainably is far superior to these challenges. We are working with relevant authorities and local investors to ensure their produce meet the required standard for our products,” he added.

Josephine Okojie