05-09-2012, 02:39 PM
Whirlpool Corporation
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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 more than 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 as lead logistics supplier, Whirlpool experienced cost savings, increased customer satisfaction and found a partner to help integrate the recent acquisition of Maytag.
Challenges
• To effectively leverage its supply chain to maximize cost savings, while also positively influencing the overall Whirlpool customer experience
• To swiftly and efficiently integrate Maytag operations
Solutions
• Through the Penske/Whirlpool lead logistics provider (LLP) relationship, Penske assumed responsibility for execution and management of third party logistics providers (3PLs), and provided an enhanced ability to view each supplier’s key performance indicators integrated with financials
• Penske built a new routing tool specifically for Whirlpool that offered overall cost optimization and mode selection
• Penske helped to integrate Maytag operations through consolidating Local Distribution Center (LDC) networks, optimizing routing of Regional Distribution Center (RDC) shipments, determining optimal fleet size and operating network, combining co-located Maytag and Whirlpool RDC locations and integrating the Hi/Lo network to improve product availability and fill rates
A Separate Entity is Created
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.
Immediate Savings and Looking International
Penske LLP continues to enhance Whirlpool’s supply chain visibility, increase cost savings and better optimize routing. The supply chain transition and the integration of Maytag are still in process, but Penske was able to provide Whirlpool with some immediate savings. By assuming responsibility for Maytag’s private fleet Penske saved Whirlpool more than $1 million. And, Whirlpool has gained close to $5 million from a combination of additional volume from Maytag, savings from the competitive bid process and re-adjusting surcharges. Whirlpool supply chain estimates more than $40 million in savings from the Maytag integration.