Unilever is integrating artificial intelligence into its ice cream supply chain to enhance forecasting, inventory management, and last-mile delivery efficiency, according to Sandeep Desai, EVP and chief product supply chain officer for the company’s ice cream business. Speaking at Manifest 2025 in Las Vegas, Desai emphasized that AI is being leveraged to analyze weather data for better demand predictions and to optimize factory production.
AI-Driven Innovations in the Cold Chain
The consumer packaged goods giant is employing AI technology in freezer cabinets for real-time inventory updates and across its factories for enhanced production efficiency. By utilizing connected sensors, Unilever aims to gain better visibility in the final leg of delivery—from distribution centers to retail freezers.
However, deploying cost-effective tracking solutions remains a challenge. Desai noted that while high-value goods like diamonds can justify expensive tracking technology, ice cream operates within tight margins, making affordability a key concern.
Overcoming Fleet Management Hurdles
Managing logistics is another challenge, particularly with Unilever’s mix of large trucking carriers and independent operators. Desai highlighted that while ocean freight tracking has improved significantly, trucking visibility still lags behind.
Despite the hurdles, Desai stressed the importance of continuing to pilot and scale new technologies. He believes that costs will decrease over time as Unilever refines its AI and machine learning capabilities for demand planning.
Future of Automated Warehousing
Unilever is also pushing for more automation within its warehouses. The company has already introduced highly automated “dark” warehouses, where technology like drones manages stock without human intervention. Currently, 10% of Unilever’s ice cream warehouses operate in this manner, and the company aims to increase that number in the coming years.
“My vision is all warehouses should be 100% dark,” Desai stated, emphasizing the need for automation in cold chain logistics, particularly to address labor shortages in low-temperature environments.
Unilever’s Ice Cream Business Set for Spin-Off
Unilever’s ice cream business is on track to be spun off from the main company by the end of 2025. The move is expected to drive supply chain efficiencies, as the business recorded a 3.7% increase in underlying sales in 2024, driven by innovation and operational improvements.