Whirlpool Corporation - The Evolution of a Supply Chain

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 (LLP) relationship, Penske assumed responsibility for execution and management of third party logistics providers (3PLs), and provided an anhanced 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 mod eselection
• Penske helped to integrate Maytag operations throigh consolidating Local Distribution Center (LDC) networks, optimizing routing of Reginal Distribution Center (RDC) shipments, determining optimal fleet and operating network, combining co-located Maytag and Whirlpool RDC locations and integrating the Hi/Lo network to improve product availability and fill rates.