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Whirlpool Corporation:Evolution of a Supply Chain

Summary

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 over 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 their lead logistics supplier they’ve experienced cost savings, increased customer satisfaction and found a partner to help integrate the recent acquisition of Maytag.


Challenges
Solutions / Results
To reduce costs throughout the supply chain using a single logistics provider.

To consolidate the distribution processes from Whirlpool's two incumbent logistics providers and establish consistent processes and supply chain visibility.

To establish new revenues to alleviate supply chain costs.

 With an optimized distribution network and IT infrastructure, Penske reduced Whirlpool’s overall distribution and transportation costs.

Penske implemented third-party and proprietary IT solutions that integrated all order-to-delivery data and streamlined delivery processes.  On-time deliveries are at 99 percent and point-of-delivery damages have been reduced by 40 percent.  Orders are now handled and routed within 48 to 72 hours.

Penske established third-party customers to share supply chain costs, resulting in $44 million in new revenue generation during 2002 to 2003.




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