Whirlpool--Getting Focused on the Maytag Integration

It's Whirlpool LLP, we are able to assist in lowering Whirlpool and Maytag supply chain costs?
Ray Russell, Senior Vice President ?Operations, Penske Logistics

Penske is an extension of the Whirlpool Supply Chain. Penske partnership with Whirlpool absolutely epitomizes teamwork. It's everyone working together as one?
Paul Vanderboegh, Director, Quality Express Operations, Whirlpool

At the same time Whirlpool changed its supply chain structure, it also acquired Maytag, resulting in one of the largest retail acquisitions. The primary focus of Penske LLP and all of the suppliers quickly became the swift integration of Maytag operations. This effort includes several intricate steps including consolidating LDC networks, optimizing the routing of RDC shipments, determining optimal fleet size and operating network, combining collocated Maytag and Whirlpool RDC locations and integrating the Hi/Lo network to improve product availability and fill rates.

Whirlpool’s inbound structure was already fairly centralized, while Maytag operated in a very decentralized structure with all plants managing their own inbound freight. Penske LLP began working toward the ultimate goal of getting the inbound model of Maytag to emulate Whirlpool.

Penske 3PL was awarded ownership of three warehouses, which included ownership of the employees and a small private fleet used mostly for inbound and some outbound deliveries. Penske 3PL took over the fleet to alleviate Whirlpool risk.

Penske LLP uncovered several areas for immediate savings. Between 30 to 40 percent of Maytag suppliers were the same as Whirlpool, so Whirlpool could immediately start streamlining operations. Whirlpool and Maytag had outbound freight that would go to the same area but be delivered separately. Penske LLP helped determine how best to divide outbound freight among dedicated fleet, common carrier, etc. And, provided Whirlpool with an interim solution to experience cost savings earlier by using a Penske system to consolidate orders for freight before the integration of the two systems was complete.

Next step for Maytag outbound integration is combining the distribution centers. Both Whirlpool and Maytag have distribution centers. Penske is providing additional systems and operational support including process flow, information routing between SAP and multiple providers?systems and ensuring correct information within SAP. Then the final step will be integrating the warehouses.