Whirlpool Case Study 1
Whirlpool Case Study
Name and Number of Student
Date of Submission
Whirlpool Case Study 2
Executive Summary
The main purpose of conducting this research report is to access and analyze the supply
chain strategies and practices of Whirlpool. The study is also explained the concepts of supply
chain management in term of its applications, importance, significance, principles and areas. In
addition to this, the study explains and addresses the key issues faced by the company in the
market related to the supply chain management. On the other hand, this research report is also
outline and explains the key benefits or advantages of change to the supply chain. At the same
time, this research report is also provides in-depth information about the strategy adopted by the
Whirlpool in order to manage supply chain related practices and activities. Moreover, the study
is also explained the demand, capacity, scheduling and inventory related challenges faced by the
company. Moreover, the study is also provides practical suggestion to improve supply chain
performance.
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Table of Contents
Executive Summary.........................................................................................................................2
Case Analysis & Findings...............................................................................................................4
Concept of the Supply Chain.......................................................................................................4
Challenges Faced by Company....................................................................................................4
Benefits of Change to Supply Chain:...........................................................................................5
Whirlpool Strategy.......................................................................................................................5
Demand, Capacity, Scheduling and Inventory Challenges..........................................................6
Conclusion.......................................................................................................................................6
Recommendation.............................................................................................................................7
References........................................................................................................................................8
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Case Analysis & Findings
Concept of the Supply Chain: A supply chain can be defined as a specific network among
an organization and its suppliers/providers to produce as well as distribute a specific product or
service to the end users i.e. Customer. This network is involves several information, activities,
practices, people, resources, and entities. On the other hand, it is also found that, supply chain
process is consider several activities including raw material, alteration of natural resources, and
components into a final product that is delivered to the end customer. At the same time, it is also
important to know that, supply chain management is all about managing as well as handling the
complete production flow of goods or services (Taticchi, Garengo, Nudurupati, Tonelli, &
Pasqualino, 2015). Planning, sourcing, making, logistics, returning and enabling are the key
components of traditional supply chain management. In the present time, different types of
supply chain management strategies as well as methods are utilized by today’s modern business
organizations in order to enhance competitiveness and improve customer satisfaction level. SCM
is play key and fundamental role in the total success and growth of a company by offering
competitive advantages and other tangible & intangible benefits (Hassini, Surti, & Searcy,
2012).
Challenges Faced by Company: There are several issues or challenges faced by Whirlpool
directly or indirectly in the market. For example, the overall strategic focus of the company was
on its brands as well as products. But, in the context of environmental changes (Customer wants
& expectation), this response of the company was shifted to their supply chain and company had
paid too much attention about how to manage supply chain effectively and successfully. On the
other hand, it is also important to know that, the requirement to emphasis on the supply chain
was also prompted by the key internal as well as organizational changes such as: merger with
Maytag (Schaltegger, & Burritt, 2014). Moreover, it was documented by the company that there
two major issues which require more attention. The main issues were listed as below such as:
The aspiration for business partners to hold lots of inventory which affected the cash
flows
Balancing number one with customers needing their products quickly (Taticchi, Tonelli,
& Pasqualino, 2013).
In addition to this, the one of the key aim obliging the redesign of supply chain was to
guarantee a customer order can be fulfilled effectively and delivered to the final customer within
Whirlpool Case Study 5
forty eight hours. In the same way, Whirlpool had developed its supply chain strategy in order to
reduce cost, improve cash flow, and offering the right product to their right customer. But, the
merger with Maytag of Whirlpool added another major layer of difficulty to Whirlpool's efforts
to manage sales, orders, and cash flow (Seuring, & Müller, 2008).
Benefits of Change to Supply Chain: Based on the given case study, it is found that, the
company Whirlpool is taking several specific benefits or advantages from change to supply
chain. For instance, the company had improved collaboration with suppliers successfully.
Moreover, it is also brining innovation within the existing business & supply chain processes and
results in improved product quality. On the other hand, the company is also attracting as well as
retaining both employees and customers effectively. Additionally, through changes in the supply
chain, the company is able to create and generate new market opportunities for the growth and
success. It had also allowed the company to provide more security to its creditors and investors.
Moreover, it is also helping the company in fulfilling the requirements and expectations of key
stakeholders (Hove-Sibanda, & Pooe, 2018). The following listed below are the key benefits
such as:
Improvement in the supply chain network
Lowers Delay in Processes
Improved inventory
Raised Business Profit Level by minimizing several costs
Improved Efficiency Rate
Improved Customer Service
Mitigation of several supply chain and business risks
Reduction on Overhead Costs (Miemczyk, Johnsen & Macquet, 2012).
Improved profit and revenue level
Improved customer satisfaction rate
Whirlpool Strategy: The given case study is clearly indicates that, the company Whirlpool is
using and applying a brand value‐creation strategy. This strategy is utilized by the company in
order to enhance product quality, improve customer value, focus on innovation and cost
productivity. This strategy had helped the company in enhancing its global operating platform on
the regular basis. With the effective use of this strategy, the company is building as well as
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maintaining long term positive relationships with the customers & different types of customers
(Sarkis, Zhu, & Lai, 2011). On the other hand, this strategy had allowed the company to achieve
competitive advantages in the market. For instance, this strategy is helping the company to
introduce new products or services in the market in advance. Moreover, the company is
successfully building customer recognition, and customer loyalty. For example, this strategy is
playing key role in enhancing the business reputation of the company in the global market. It
means they company had developed a unique brand image in the eyes of global customer with
the effective use of brand value‐creation strategy (Ip, Chan, & Lam, 2011).
Demand, Capacity, Scheduling and Inventory Challenges : On the finding of the
given case, it is accessed that, the company Whirlpool had faced several issues related to
managing demand, scheduling, capacity and inventory.
Demand Capacity Challenges Scheduling Challenges Inventory
Challenges Challenges
Excess demand Access to latest Employees complaints Inefficient Processes
Managing technology Managing budgets Managing People and
demand Shorter lead time Accurately anticipating Space
Managing Quality and safety of scheduling needs Increasing Competition
customer needs products Staff turnover Lack of understanding
& expectations Stakeholder Employee availability about inventory
(Qorri Mujkić, management Last minuets shift Limited Visibility
& Kraslawski, New talent pools changes (Ibrahim, and Less Accurately Track
2018). Excess capacity Hamid, 2014). Inventory
Conclusion
On the basis of above discussion, it can be concluded that, supply chain management is
of the integral part that play fundamental role in the success and growth of a company. In
addition to this, it can also be summarized that, Whirlpool Corporation is one of the leading,
reputed and fast growing producer and manufacturer of home appliances in the industry that
facing a number of issues or challenges related to the supply chain management. These
challenges are negatively affecting the business reputation, profit & revenue level, creditability
and success of the company. Moreover, the company is using brand value‐creation strategy in
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order to attain strategic business objectives. Finally, it can be concluded that, the company
should adopt best practices to manage such issues.
Recommendation
On the basis of overall findings and facts, it is suggested that, the company should pay
special attention on improving its supply chain processes, strategies and techniques in order to
enhance speed of response to customers. It means, the company should adopt and apply best
supply chain practices, methods and processes in order to attain this objective. On the other hand,
it can also be suggested to the company that, the company should also focus on managing excess
demand and capacity by utilizing available resources successfully. This would also help the
company in increasing the profit level and satisfying the customer needs on the time. On the
other hand, the company would also need to overcome as well as manage several issues related
to supply chain such as: Demand, Capacity, Scheduling and Inventory to deliver the product
within the 48 hours. For instance, both demand and supply should be balanced at the optimum
capacity. The company should also focus on delivering quality services to the customer in a
timely manner. Along with this, the company must also adopt strategies for shifting demand to
match capacity and adjusting capacity to match demand. Finally, it is suggested that, the
company should improve its supply chain performance through monitoring supplier
performance, real-time inventory management, increasing transparency and standardizing the
supply chain process.
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References
Hassini, E., Surti, C., & Searcy, C. (2012). A literature review and a case study of sustainable
supply chains with a focus on metrics. International Journal of Production
Economics, 140(1), 69-82.
Hove-Sibanda, P., & Pooe, R. D. (2018). Enhancing supply chain performance through supply
chain practices. Journal of Transport and Supply Chain Management, 12(1), 1-13.
Ibrahim, S. B., & Hamid, A. A. (2014). Supply chain management practices and supply chain
performance effectiveness. International Journal of Science and Research, 3(8), 187-195.
Ip, W. H., Chan, S. L., & Lam, C. Y. (2011). Modeling supply chain performance and
stability. Industrial Management & Data Systems, 111(8), 1332-1354.
Miemczyk, J. Johnsen T. & Macquet, M. (2012) Sustainable purchasing and supply
management: a structured literature review of definitions and measures at dyad, chain and
network levels. Supply Chain Management: an International Journal, Vol. 17 (5), 478-
496.
Qorri, A., Mujkić, Z., & Kraslawski, A. (2018). A conceptual framework for measuring
sustainability performance of supply chains. Journal of Cleaner Production.
Sarkis, J., Zhu, Q., & Lai, K. H. (2011). An organizational theoretic review of green supply chain
management literature. International Journal of Production Economics, 130(1), 1-15.
Schaltegger, S., & Burritt, R. (2014). Measuring and managing sustainability performance of
supply chains: Review and sustainability supply chain management framework. Supply
Chain Management: An International Journal, 19(3), 232-241.
Seuring, S., & Müller, M. (2008). From a literature review to a conceptual framework for
sustainable supply chain management. Journal of cleaner production, 16(15), 1699-1710.
Taticchi, P., Garengo, P., Nudurupati, S. S., Tonelli, F., & Pasqualino, R. (2015). A review of
decision-support tools and performance measurement and sustainable supply chain
management. International Journal of Production Research, 53(21), 6473-6494.
Taticchi, P., Tonelli, F., & Pasqualino, R. (2013). Performance measurement of sustainable
supply chains: A literature review and a research agenda. International Journal of
Productivity and Performance Management, 62(8), 782-804.
