The ice cream industry isn’t just about making delicious treats; it’s about mastering the art of supply chain management. From unpredictable weather patterns to fluctuating consumer demand, running a global ice cream operation comes with unique challenges. Unilever, a global leader in consumer goods, has taken the leap into the future by integrating artificial intelligence (AI) into every step of its ice cream supply chain.

With 35 factories, 3 million freezers, and operations spanning 60 countries, Unilever is leveraging AI to optimise production, reduce waste, predict demand, and improve customer satisfaction. Here’s how this transformation is revolutionising one of the most seasonal segments of the food industry.

Artificial intelligence isn’t just transforming the way we work—it’s empowering us to rethink what’s possible, turning challenges into opportunities and complexity into clarity.

The Power of Weather Data in Ice Cream Sales

For Unilever, weather patterns aren’t just a factor—they’re a driving force behind sales. In regions like Europe, where summer temperatures fluctuate, even a 1°C rise in temperature can lead to a noticeable spike in ice cream sales.

This variability can be a logistical nightmare for supply chains that rely on long-term forecasts. But Unilever’s AI-powered systems have turned this challenge into an opportunity. By analysing real-time weather data, AI tools can predict demand with unprecedented accuracy.

For example, in Sweden, AI has improved sales forecasting accuracy by 10%. This allows Unilever to adjust production schedules, reduce costs, and ensure their freezers are stocked with just the right amount of product.

Elif Cakir, Unilever’s Ice Cream Supply Chain Long-Term Planning Lead, explains, “AI helps us understand where to sell, how much to sell, and when to deliver. This ensures we’re prepared for changes in demand, no matter the weather.”

Adapting to Sudden Weather Changes with Agility

Traditional supply chains rely on static forecasts, but weather can change quickly. Imagine a sudden heatwave sweeping through southern Europe—without the ability to respond rapidly, Unilever could miss out on significant sales opportunities.

Unilever’s AI systems monitor inventory levels in real time and reallocate stock as needed. For instance, if a region experiences unexpected demand, AI can identify nearby stock and optimise delivery routes for maximum efficiency.

This agility also extends to Unilever’s refrigerated fleet. AI tools optimise delivery schedules to minimise fuel consumption and ensure products reach customers while staying fresh. By reacting quickly to unexpected weather changes, Unilever not only meets consumer demand but also reduces its environmental impact.

AI-Powered Manufacturing: Boosting Efficiency and Cutting Waste

Unilever’s factories are the backbone of its supply chain, and AI is making them smarter and more efficient. Using live AI systems, production lines can adjust in real time to optimise performance and minimise waste.

For example, AI monitors variables like ingredient ratios, production speeds, and machine performance to ensure everything runs smoothly. This has led to a 10% reduction in the use of high-value ingredients like vanilla and cocoa—an impressive achievement in cost savings and sustainability.

“By streamlining our processes, AI is helping us achieve greater efficiency and reduce waste during production,” Elif says. “It’s not just good for business; it’s good for the planet.”

Revolutionising Retail with AI-Enabled Freezers

One of the most exciting innovations in Unilever’s supply chain is the rollout of AI-enabled freezers. Currently, 100,000 freezers are equipped with image capture and AI technology, and the company plans to expand this initiative globally.

These freezers provide real-time stock updates, eliminating the guesswork in inventory management. For example, retailers in Turkey, the U.S., and Denmark have seen sales increase by 8%, 12%, and 30%, respectively, thanks to these AI-enabled insights.

By knowing exactly when a freezer needs restocking, Unilever can improve sales and strengthen its relationships with retail partners. This technology also ensures consumers always find their favourite ice creams in stock, enhancing customer satisfaction.

Recognition and Industry Leadership

Unilever’s efforts to integrate AI into its supply chain have earned the company significant recognition. In 2024, Gartner named Unilever one of four Supply Chain Masters for its innovative use of digital tools—a title the company has held for six consecutive years.

This recognition highlights the impact of Unilever’s AI-driven transformation, not just in terms of operational efficiency but also in setting new industry standards for sustainability and innovation.

Freeing Up Teams for Strategic Thinking

One of the less visible but equally important benefits of AI is how it empowers Unilever’s employees. By automating repetitive tasks like data entry and number crunching, AI frees up supply chain teams to focus on strategic initiatives.

“When I started at Unilever, I used formulas from college to make forecasts,” says Elif. “Now, AI handles the calculations, allowing my team to develop agile strategies that drive growth.”

This shift reflects a broader trend in digital transformation: technology isn’t replacing people—it’s enabling them to work smarter.

Lessons from Unilever’s AI Journey

Unilever’s success offers valuable insights for other companies looking to modernise their supply chains:

1. Embrace Data-Driven Decisions: AI provides actionable insights that improve accuracy and efficiency across the supply chain.
2. Stay Agile: The ability to adapt quickly to unexpected changes, like weather fluctuations, is critical in today’s fast-paced business environment.
3. Focus on Sustainability: Reducing waste and optimising resources benefits both the bottom line and the planet.
4. Empower People: Technology should enhance human expertise, allowing teams to focus on higher-value activities.

The Road Ahead: A Model for the Future

As Unilever continues to expand its AI initiatives, its ice cream supply chain is becoming a model for innovation and sustainability. By integrating real-time data insights, optimising logistics, and enhancing manufacturing efficiency, the company is setting new benchmarks for the consumer goods industry.

For businesses navigating today’s complex global markets, Unilever’s journey demonstrates the power of technology to turn challenges into opportunities. The future of supply chain management is here, and it’s powered by AI.(source: Unilever)