Whirlpool--A Separate Entity is Created

Penske Logistics provides us with the platform, technology and execution we need to ensure world class distribution services. Truly, it's been a collaborative partnership since day one?

Steve Whalen, Director of Supply Chain Operations, Whirlpool Corporation

Penske was awarded the business. Immediately, Penske LLP began building a strong business foundation to maintain the confidence with Whirlpool that it could act independently. Penske LLP first separated from Penske 3PL. This separation applied to all facets of the business including financial statements, technology systems, human resources and physical location. The successful separation was crucial to building trust with Whirlpool, as Whirlpool ran the risk of litigation from other 3PL providers if any party suspected special rights/privileges were being awarded to Penske 3PL.

The first and most notable transition was separating the financial and operating statements, which was accomplished in only 60 days. During this process, Penske and Whirlpool decided what information could be shared and what was to be confidential. Working together, a code of conduct and process of signing off between the two entities was established.

Penske LLP also maximized human resources by not adding any additional staff, but instead moved qualified associates within the organization to fill needed roles. Penske appointed several General Managers to oversee key functions such as:

Distribution network services - including support of strategic sourcing and contract administration, provider payment management, business process improvements, policies and procedures and customer service of all distribution centers and cross docks.

Transportation network services ?focused on shipment load planning and optimization, mode selection, shipment tendering and monitoring, carrier performance, carrier freight payment, proof of delivery compliance, claims management and managing carrier rates and budget compliance.

Financial consolidation - responsible for auditing and reviewing the key performance indicators.

(KPIs) of all 3PLs. This function focuses on RFP financial analysis, the annual business plan, carrier and provider financial audit, financial reports and statement consolidation.

Technology and engineering - a key function as Penske LLP is the link that allows Whirlpool visibility to all of their suppliers. This function includes network design and transportation modeling, warehouse engineering/design, LLP freight and provider management, LLP portals to 3PLs, web visibility/shipment monitoring, exception/alert monitoring, freight bill audit and payment, business intelligence and EDI interface and support.

As Whirlpool’s LLP, Penske assumed responsibility for execution and management of all 3PLs. Penske LLP became an extension of Whirlpool ?in every business, staff and budget meeting. From a financial perspective, Penske LLP provided Whirlpool with an enhanced ability to view supplier’s key performance indicators integrated with financials. This scorecard provided a clear picture of performance.

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