Whirlpool--Penske Provides The Solution

our business relationship with Whirlpool is one of Penske Logistics?longest-standing, and most successful engagements. It's because of that relationship that we are able to quickly understand and evaluate Whirlpool supply chain and propose solutions to improve efficiency and provide deeper supply chain visibility.?

Ray Russell, Senior Vice President ?Operations, Penske Logistics

After completion of its customer-centric supply chain analysis, Whirlpool knew innovation was necessary to maintain a competitive advantage. After careful consideration, Whirlpool decided to adjust the company supply chain structure and introduce additional third-party logistics providers (3PLs) into the mix. By taking this step Whirlpool hoped to further reduce supply chain costs.

However, having multiple 3PLs created the need for an objective resource to keep homogeneity for the consumer, select and manage the 3PLs and analyze the overall supply chain. After reviewing internal options, Whirlpool realized it lacked the capability or resources in-house to manage the 3PL relationships and made the decision not to increase staff to fill this role. This decision crystallized the need to hire a lead logistics provider (LLP).

As Whirlpool searched for the right LLP, Penske Logistics continually surfaced as the leader in technology and engineering. Plus, after years of working together, Penske’s capabilities were already embedded in Whirlpool processes and structure. The main concern facing Whirlpool in its decision to appoint Penske as its LLP was that Penske would have to remain objective when reviewing 3PLs. Essentially Whirlpool was concerned about whether Penske could objectively award or remove business from a 3PL based exclusively on the business requirements and not show any favoritism to Penske 3PL. Penske actually assumed the unofficial role of LLP when the need arose. Penske filled the gaps to re-engineer the Whirlpool network to accommodate the new multiple 3PL structure. By demonstrating its capability ahead of officially being awarded the contract, Penske built the trust of Whirlpool senior management and made the transition easier.

Whirlpool continues to benefit from Penske's outbound distribution and transportation experience each day.  While Penske has exceeded Whirlpool's expectations, the work is never done.  Continuous process modeling continues to improve and enhance Whirlpool's supply chain network.  At any given time, Penske is working on 5 to 10 new projects to drive efficiency and reduce costs throughout Whirlpool's operations.