Whirlpool--A Separate Entity is Created

Penske LLP developed a monthly reporting process for Whirlpool to review at a high level the LLP, RDC and LDC scorecards, as well as, the scorecard for every provider location. Penske LLP began conducting monthly reviews with all providers and Whirlpool using the scorecard as the basis to identify best practices and areas for improvement. RDC scorecard metrics include inventory cycle count accuracy, damage as a percent of throughput, inbound on-time loading, and on-time departure. LDC scorecard metrics include total units per stop, miles per stop and on-time delivery percent.

Technology is also an important driver in the success of this relationship. Penske built a new routing tool specifically designed for Whirlpool. Whirlpool benefited with overall cost optimization and mode selection. Orders from all 3PLs are sent to the central system, which stores all the shipping data for each region, every day and determines the best-cost solution ?whether it is a truck carrier, dedicated fleet, etc. This optimization allows Whirlpool to remain confident that everyday they are getting the best-cost solution.

Future enhancements are already in development. When the new I2 platform is implemented it will streamline the process even further for processing and payment. Several larger providers may move to EDI. While other providers can access an order link process, which is web application that includes an auto pay function.

In addition to an optimized distribution and transportation network infrastructure, Penske recommended another strategy for reducing Whirlpool's overall supply chain costs.  With an expansive network, Whirlpool could share its network with third-party customers.  These customers would not be purchasing major appliances.  Rather, Whirlpool could "sell" its distribution and transportation network to other manufacturers who had similar logistics demands.  Penske and Whirlpool could work with these third-party customers to maintain inventory and deliver goods.  The result would be a new revenue stream, which would reduce the burden of Whirlpool's supply chain costs.

Penske LLP Scorecard Highlights 
In only four months, Penske LLP was able to:

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• Increase On-Time Departure 13%
• Increase On-Time Delivery to LDC 12%

Increase On-Time Loading 13%

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