To add to the above challenges another major challenge was the smooth integration of Maytag into Whirlpool Corporation as mentioned below. Whirlpool had already started to have a hard analysis of its supply chain just before the acquisition. Acquisition of Maytag was very challenging as they were almost of same size and integrating its supply chain along with order, sales and information flow would be a cumbersome task.
Slow moving items were placed at center of facility like expensive refrigerators and stoves, whereas fast moving items like dryers and washing machines were closer to loading docks. Inventory Whirlpool got a better understanding of its resources and whereabouts of inventory after the consolidation of its warehouses. The items would be painted to appropriate color as per order. This postponement strategy of the commitment to color allows a further substantial reduction in inventory Thomas Based on the theory, relationship improved as retailers got a better hold on its inventory status and customized products were available at a faster rate to customers.
They were also focused in areas such as Cross docking, Mode selection, shipment load panning and optimization Penske By having a better hold on its routing network and mode selection Whirlpool became more efficient and reliable 7 Cliffton Pereira Information Electronic Data Interchange EDI EDI is an electronic was of transferring data across organization and between trade partners. This was implemented for a more systematic data approach which promised fewer transactional errors with improved accuracy and better effectiveness.
As shown in the diagram below, EDI eradicated the use of manual interfearance that caused errors while use and used a more universal approach of transferring data. The data to be transferred is coded in a computer format and sent via EDI servers and accessed at receivers end with readable version. This also gave access to have collaboration weekly rather than monthly cycle.
This data can be used for accessing minute data like quality of a component to make strategic business decisions. Data Warehousing Applications and the Business Needs That They Satisfy Schedule Actualization This is basically about tracking or knowing the whereabouts of the inventory so that the retailers have a better idea on its shipments.
Systems required replacement and integration with Maytag systems. Overall, there was a need to improve visibility within the supply chain. Secondly, the company rationalised facilities, reducing the number of buildings from ; they eliminated buildings and consolidated major warehouses into 10 regional distribution centres. Thirdly, they optimised supply and demand, with changes to demand planning models and software and integration with upstream suppliers.
Suggest how the company might increase its speed of response to customers i. The core activities of a business set of activities used by an organization to transform different kinds of resource inputs into final goods and services.
The planning, scheduling, and control of the activities that transform inputs into finished goods and services. STRATEGY the overall direction and contribution of the operation s function with the business; the way in which market requirements and operations resource capabilities are reconciled within the operation.
A merger with Maytag added another layer of complexity to Whirlpool's efforts to manage sales, orders, and cash flow. Competitive advantage reduced costs buildings rationalisation, improved inventory management and improved customer satisfaction 4 Strategy Describe the Whirlpool strategy The first aspect of Whirlpool's strategy was the order process. Thirdly, they optimised supply and demand with changes to demand planning models and software and integration with upstream suppliers.
Page 4 5 Case study references Cole, G A. Cengage EMEA. Collier, D. Manhattan Associates, Better responsiveness can be achieved by reducing the number of stages in supply chain. MacMillan, Distribution center were planned according to the rate at which products leave the center. Products which are costly i. Barrett, This changes of reducing the facilities and change in the functioning of distribution centers has helped them in being more coordinated, efficient and responsive.
Page 4 of 12 According to Tharp, Whirlpool started with Just in time method to manage their inventory. According to this approach merchandise sent to retailers was cut down, also for retailers managing the cost of inventory got lowered with better tracking of products this increases the belief of retailers on Whirlpool.Murray, and Sundeep Bande. Slow moving items were placed at center of facility like expensive refrigerators and stoves, whereas fast moving items like dryers and washing machines were closer to loading docks. At Whirlpool, there is a constant focus on seeking out new and unique ways to improve the function, performance and sustainability of products. STRATEGY the overall direction and contribution of the operation s function with the business; the way in which market requirements and operations resource capabilities are reconciled within the operation. For more information on Penske Kashmiri solutions, visit GoPenske. All these topics led to the sciences faced by Whirlpool. The calms of inventory were too high, and Thus actually had Creemore springs brewery case study allocate 15 temporary buildings for accepting excess inventory. Thirdly, they optimised headset and demand, with changes to demand pornography models and software and integration with upstream people.
Core flexibility measures for Whirlpool are: the level of customer satisfaction, the number of hours needed to respond to non-standard orders, seasonal dynamics of excess inventory and the percentage of lost orders related to all orders.