Whirlpool Case Study
CASE STUDY
Whirlpool Corporation
Evolution of a supply chain
Whirlpool Corporation is the world’s leading manufacturer and marketer of major home appliances, with annual sales over $19 billion, more than 80,000 employees and more than 60 manufacturing and technology research centers globally. Consumers around the world enjoy Whirlpool’s innovative products marketed under Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Bauknecht and other major brand names. With this varied inventory, plus a large direct sales force in more than 170 countries and an unpredictable sales cycle, effective supply chain management is critical for continued growth. Whirlpool has not always considered logistics a competitive advantage. However, since naming Penske as lead logistics supplier, Whirlpool experienced cost savings, increased customer satisfaction and found a partner to help integrate the recent acquisition of Maytag. Whirlpool as its single logistics provider for the Quality Express network. Penske was responsible for the logistics of the entire network, including managing the relationship of the two regions it subcontracted. This Penske-Whirlpool partnership replaced Whirlpool’s previous logistics solution, comprised of two incumbent third-party logistics providers. The partnership accomplished Whirlpool’s early logistics objectives, most notably, to establish effective processes and procedures, allow for more visibility of the company’s distribution network and reduce supply chain costs. Recently, Whirlpool’s management took a more customer-centric approach to analyzing its supply chain and began benchmarking its supply chain against other companies to identify “best in class” practices. This exercise prompted Whirlpool to question whether having a single logistics provider was the best structure to exceed customer expectations and maximize cost savings. At the same time, Whirlpool was gearing up for the monumental acquisition of Maytag.
Challenges
• To
Whirlpool Corporation
Evolution of a supply chain
Whirlpool Corporation is the world’s leading manufacturer and marketer of major home appliances, with annual sales over $19 billion, more than 80,000 employees and more than 60 manufacturing and technology research centers globally. Consumers around the world enjoy Whirlpool’s innovative products marketed under Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Bauknecht and other major brand names. With this varied inventory, plus a large direct sales force in more than 170 countries and an unpredictable sales cycle, effective supply chain management is critical for continued growth. Whirlpool has not always considered logistics a competitive advantage. However, since naming Penske as lead logistics supplier, Whirlpool experienced cost savings, increased customer satisfaction and found a partner to help integrate the recent acquisition of Maytag. Whirlpool as its single logistics provider for the Quality Express network. Penske was responsible for the logistics of the entire network, including managing the relationship of the two regions it subcontracted. This Penske-Whirlpool partnership replaced Whirlpool’s previous logistics solution, comprised of two incumbent third-party logistics providers. The partnership accomplished Whirlpool’s early logistics objectives, most notably, to establish effective processes and procedures, allow for more visibility of the company’s distribution network and reduce supply chain costs. Recently, Whirlpool’s management took a more customer-centric approach to analyzing its supply chain and began benchmarking its supply chain against other companies to identify “best in class” practices. This exercise prompted Whirlpool to question whether having a single logistics provider was the best structure to exceed customer expectations and maximize cost savings. At the same time, Whirlpool was gearing up for the monumental acquisition of Maytag.
Challenges
• To