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Nitin Baranwal (55)

Rajesh Kumar (67)

Saket Kr. Singh (74)

Shikha Gupta(83)

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 Y ear 2000 ² Company supply chain staff were

considered as ¶sales disablers·

 Y ear 2005 ² Whirlpool excels at getting right

product to right place at the right time while

keeping inventory low

What made the difference?? 

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Other Divisions :

Firing on all cylinders

SCM Division:

- Spotty Service

- High Logistics Costs

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Product Range: Washers

Dryers

Refrigerators

Dishwashers

Ovens

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Manufactures in 13 Countries

Sells in over 100 countries

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SCM Mission:

Deliver right product, to right place at right time ² all the time

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I. Devising the Strategy

II. Selling the Revolution

III. Getting FocusedIV. Engaging Talent

 V. Sustaining Momentum

 VI. On the Horizon

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High finished good inventory

Product availability 87%

Poor delivery performanceUse supply chain investment proposal/

new IT

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Understanding Customer Needs

Identifying Trade Partners· Priorities

Benchmarking the Competition

Building the Future

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Contrary to the traditional manufacturing

organization, to develop supply chain

strategy they started with the last link ² the customer ² and proceeded backward

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1. Understanding customers· needs :

BCG research findings Customer value ́ delivery with integrityµ

´Give a date, hit a dateµ

Psychology of delivery date

commitments2. Identifying trade partners· priorities :

Intermediate customers ² retailers e.g.

Sears, Lowes, Best Buy

Discovered 27 different dimensions of 

performance that were important to

them

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3. Benchmarking the Competition :

Benchmarked main competitor :GECross-industry & competitive

intelligence from consultants AMR,

Gartner,Forrester Research

Mapped World Class performance on 27

capabilities

Prioritized ́ low hanging fruitµ

Plan was to meet or beat competition inmost areas at min. cost.

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4. Building the Future

IndustryEconomy and

Technical trend

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Maintain balance between seeking

guidance & selling your vision

 Justify project on expense reduction & working capital improvements

Competitive analysis helped

Nemawashi ² consensus building

Explain how project includedsuggestions from others.

That·s how people came on board.

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New Sales & Operation Planning Process

Forecast that all participants can relate to

CPRF ( Collaborative Planning, Forecasting, and Replenishment) Pilot

Share forecast but not sensitive data behind the forecast

In 30 days f/cast accuracy error cut in half 

Greater f/cast accuracy reduces excess Finished Goods inventory

substantially.

Disciplined Project Management Office

Time/budget/benefit Think big but focus on near-term deadlines.

Change effort broken down into 30 day chunks

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Talent renaissance

Climate of innovation excellence

Develop/ assess/ reward talent

Project Management Skills

Many new recruits

 Advisory board

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High Volume SKUs

Plan to Sell

Better ServiceLevels

Low Volume SKUs

Build to OrderLower Service Level

System-to-System

Transactions

Partner Stores

(online delivery) Event ManagementTechnology

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It's great to improve forecasts, optimize transportation, and

speed up our processes with existing SKUs.

2001 ² Product availability 88.3%x Inventory holding 32.8 days

2003 ² Product availability 93% (Order fill rate 96%)

x Inventory holding 26 days

x Working capital lowered by almost $100 million and

supply chain cost by $20 million