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Whirlpool EuropeSupply chain introduction

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Whirlpool Europe introduction

• Whirlpool Corporation & Whirlpool Europe– Who we are

• Whirlpool Europe Supply chain – Supply Chain organization– Supply chain network– Supply chain processes– Supply chain KPI – Supply chain planning system architecture– Demand management

• Operational demand management & S&OP– Product introduction process ( Perfect launch )

• Whirlpool Europe Supply Chain strategy

• Whirlpool Europe Employees Engagement

LEAD to WIN

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World Leader in Domestic Appliances

Operates in 170 countries40% bigger than nearest competitor95 years specialist in home appliances

“At home” in over 200’000’000 households world-wide

WHIRLPOOL CORPORATION

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Whirlpool Corporation TodayThe world’s leading manufacturer and marketer of major home appliances.

Products: Full line of major home appliances

2006 revenues: $18.1 billion

2006 net earnings: $ 486 million

2006 units shipped: 55,000,000

Manufacturing: 13 countries in 4 continents

Marketing: 170+ countries

Employees: approximately 80,000 worldwide

Brands: Compelling portfolio of consumer preferred brands

World Leader in Domestic Appliances

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Brand PortfolioWe Touch All Key Consumer Segments

Premium segment

Quality minded

Very brand conscious

Home enthusiast

Mass market

Young families

Value sensitive

Looking for reassurancePassionate about simplicity

Up market

Style and design minded

Fashion oriented

Time pressure

Technology / design driven

Cooking passionates

Creative & modern mentality

Look for professional-like results

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The Essence of Whirlpool’s Five Values in 2007

Respect others and believe in individual ability

Always do the right thing

Make the most of diversity to obtain better results

Achieve more working together

Win in business by winningThe hearts and minds of our customersSpirit of Winning

Respect

Integrity

Diversity and Inclusion

Teamwork

Whirlpool values

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Whirlpool in Europe

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Factories

European Operations Centre

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g #4 position as manufacturer; #1 as Whirlpool brand

g Sales US $3,4 billion

g Brands: Whirlpool, Bauknecht Ignis, KItchenAid across the region;Maytag in some markets, Laden in France, Polar in Poland

g Serves Europe, Middle East and Africa

g 31 sales offices, export in other 38 countries

g Shared Services Center, Dublin, Ireland

g 14,000 employees approx

Whirlpool in EuropeWhirlpool in Europe

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Supply Chain the key elements

• Business processes

• Business models

• Distribution Models

• The 3 Axises

• Markets• Products• Product sourcing

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Supply Chain Process

Factories

Suppliers

Built To Order

Make To Stock Deliver From Stock

Demand mgmt

Order IntakeSupply Planning

Production Planning

Logistics providersselection & negotiation

Carriers mgmt

Customer

Trade

Order To DeliveryOrder To Delivery

S&OP

Footprint design

Service level mgmt

Distribution mgmt

Warehouse mgmt

Order mgmt

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Supply Chain Business Models

TP’sCustomer

FactorySuppliers RDCFDC/CDC

MTS Make To Stock

USSUpstream Stock

VMI Vendor management inventory

BTOBuilt To Order

OrderForecast

Stock re-fillForecast

OrderForecast

OrderForecast

PULL - Order driven

PUSH - Forecast driven

Decoupling point = point synchronisation between TP order and supply

WE business models well supported by organisation, processes and systems

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Planning Processes & time horizonsM+1 to current year end

M+2M+1 M+12

ForecastForecast

Mid to Long term Demand & Supply Matching

Supply Plan by SKU / LocationDistribution planning Supply PlanSupply Plan

Production ScheduleProduction Schedule

ComponentComponentrequirementsrequirements

DeploymentDeployment

Daily buckets rolling

Weekly buckets rolling

Daily run

Week 1 Week 2 Week 3 Week 4

Visibility only

Month (M)

Pre-seq

MRP run

Deployment plng.SKU/location

Mid to Long term Demand Plan

Daily buckets rolling

Weekly / Monthly

Forecast at SKU / location level / category, including OSP generation

LiquidVisibility, planning in SNP

Daily buckets rolling

Frozen

DeploymentDeploymentExecutionExecution

M+3 M+4 M+5Next Year

Profit Plan / BudgetProfit Plan / BudgetProfit plan per SKU / Market Oct/Nov For coming year

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Factory DCs’

Regional DCs’ BBP’s

Trade

Consumer

Whirlpool Europe’s delivery models

MTS

BT

O / D

D

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The 3 axises

• Markets• Distribution profile• Trade partners• Brand value & positioning

• Products• Brand portfolio• product portfolio• SKU Management

• Product sourcing• Factories• Suppliers• Low cost country localization

Whirlpool EuropeKPI

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Whirlpool Europe KPI

• Markets• ATR available to request• DTP Delivery to promise• DFA Demand forecast accuracy• DOS Day of sales

• Products• SKU counting• Obsolescence

• Product sourcing• PSA Production scheduling accuracy

• Distribution• CPU Cost per unit

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Processes & Performances

Supplier(s)Factory SCMFDC

MarketOTD-RDC

MarketOTD-Planning

MarketOTD-TP’s Serv TP’s

Customers

Mid/Long Term

Short Term

Execution

MonthlyODP/PPMonthlyODP/PP

GMS&OPGM

S&OP

Frozen Liquid

CapacityPanning

CapacityPanning

Call-OffForecastCall-OffForecast

DFA-AGGDFA-AGG

WeeklyForecastWeekly

ForecastDaily

PlanningDaily

PlanningDailyPlan

DailyPlan

Call-OffFixed

Call-OffFixed

OrdersEntry

OrdersEntry

OrdersSubmission

OrdersSubmission

StockTransitFrozenPlan

ProductionExecution

ProductionExecution

PSA D/WPSA D/W

FDCShipment

FDCShipment

SERSER

GITGIT RDCDeliveryRDC

Delivery

OrdersMgmt

OrdersMgmt

DTPDTP DTRDTR

Normal Sales

BTO OrdersMgmt - BTO

OrdersMgmt - BTO

BlockedProductsBlockedProducts

ProductionExecution

ProductionExecution

Planning

DOSDOS

OrdersEntry

OrdersEntry

MaterialDeliveryMaterialDelivery

OrdersSubmission

OrdersSubmission

SQRSQR

ATPATP BI-CATRBI-CATR

BI-CDTRBI-CDTR

BTO FRBTO FR

DFA-SKUDFA-SKU

PSA DPSA D

Process discipline & data accuracy key elements

DOSDOS

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KPI Description

Title: Available To Promise (ATR)Title: Available To Promise (ATR)

Description:It measures our ability to promise on the TP’s request (product, quantity, requested delivery date) at the time of order entry.

A Trade Partner request (product, quantity, requested delivery date) is considered successful when the product/quantity is promised at the requested delivered date (first commitment).

Description:It measures our ability to promise on the TP’s request (product, quantity, requested delivery date) at the time of order entry.

A Trade Partner request (product, quantity, requested delivery date) is considered successful when the product/quantity is promised at the requested delivered date (first commitment).

Frequency:Frequency:

Formula Description:Element of count: successful requested qty,

requested qty

ATP = total successful requested qty / total reque sted qty

Formula Description:Element of count: successful requested qty,

requested qty

ATP = total successful requested qty / total reque sted qty

Source (Dept., System, Report Name):Source (Dept., System, Report Name):

Ownership (Function, Dept, Name):Ownership (Function, Dept, Name):

Example

Whirlpool EuropeSupply chain planning system architecture

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Sales & Operations Planning(i.e. Spring forecast, September forecast, etc…)

Sales & Operations Planning(i.e. Spring forecast, September forecast, etc…)

Long

T

erm

Mid

T

erm

Sho

rt

Ter

m

StrategicMaterialPlanning

StrategicMaterialPlanning

Ord

er In

take

/ G

AT

P

/ Ord

er m

anag

emen

tO

rder

Inta

ke /

GA

TP

/ O

rder

man

agem

ent

Dem

and

Man

agem

ent

Dem

and

Man

agem

ent

Constrained Supply Planning• Material Constraints• Capacity Constraints• Transportation Constraints

Constrained Supply Planning• Material Constraints• Capacity Constraints• Transportation Constraints

ProductionPlanning & Scheduling

ProductionPlanning & Scheduling

Sales Parts Supply Production Distribution Trade

Key business requirements drove the design of the to-be Supply Chain processes in scope

� What-if-analysis� Exception based planning� Supply chain integration

� One consensus plan

� What-if-analysis� Exception based planning� Supply chain integration

� One consensus plan

Order intake / GATP� Differentiated TP’s service level � Allocation planning� Real time order promising

Order intake / GATP� Differentiated TP’s service level � Allocation planning� Real time order promising

Demand Management� Consensus based forecasting� Demand differentiation / Order type

visibility� Component demand planning

Demand Management� Consensus based forecasting� Demand differentiation / Order type

visibility� Component demand planning

Production Planning & Scheduling� Improved feasibility of production sch.� Order type visibility� Critical components planning� Full BTO / DD potential� Daily planning� Frozen period on daily rolling horizon� Closed loop planning

Production Planning & Scheduling� Improved feasibility of production sch.� Order type visibility� Critical components planning� Full BTO / DD potential� Daily planning� Frozen period on daily rolling horizon� Closed loop planning

Constrained Supply Planning� Full BTO / DD potential� Forecast consumption� Improved feasibility of master schedule� Flex. allocation of capacity to countries� Daily planning� Order type visibility� Inventory target setting� Deployment planning

Constrained Supply Planning� Full BTO / DD potential� Forecast consumption� Improved feasibility of master schedule� Flex. allocation of capacity to countries� Daily planning� Order type visibility� Inventory target setting� Deployment planning

Pla

nnin

g ho

rizon

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Whirlpool process & System tree

Profit Planning / Spring & September Forecasting

Demand Planning

Master Planning

Production Planning

Deployment

Production Execution

OrderExecution

Deployment Plan

Financial Target

Profit Plan

Gross Demand Plan

Net requirements / Finished Good

Supply Plan

Production Plan

FG Stock

Yearly / Half yearly

Monthly/ Weekly

Transactional

Monthly /Weekly/ Daily

Daily

Weekly / Daily

Transactional

COPICS

ESS BASE,MS Excel, etc.

Demand PlanningDemand Planning

SNPSNP

PP/DSPP/DS

SNPSNP

R/3R/3

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Whirlpool EuropeSupply chain planning Demand Management

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Demand Forecast...

� A demand forecast will never be perfect.

� However more reliable demand planning has implicati ons:� Sales volume increases, because of the higher service level and reduced out of stock

� Reduction of operational costs, less obsolete inventory risks, less capital cost and lower demand for safety stock

APO is the tool to support Whirlpool Demand Driven Plan ning Process

Demand Planning is the APO Module used to update Demand Forecast

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� ODP

� Preparation

� Consolidation

� Submission

� ODP

� Preparation

� Consolidation

� Submission

Objectives

Focus on volumes -------> CM / M+1 / M+2 onwardsFocus on volumes -------> CM / M+1 / M+2 onwards

Participants

Timing

• Every month, w1/w2 (*)(*) Iberia try to anticipate to last week M-1

OTD MKTG Sales Finance

Preparatory Meetings

ACTIVITY MeetingsWhen Weekly / By weeklyWho Planning, Sales, (MKTG)Focus M+1 / M+2What Promo, Special Actions, BTO plans

M-1 ResultMeetingsWhen Start CMWho Planning, Sales, MKTGFocus M-1 What Trends, Results vs plans

ToolsALL: a) Previous ODPb) Profit Planc) Future Promotions/BTO outlookd) Previous month detailed resultse) PIPO outlookf) Current Orderbookg) Run Rates & historical by aggse) S&OP inputs

SPECIFIC:h) Sales SKU Forecast (UK)I) Buying Groups ToT Fcst (France) l) Orderbook previous year (same period)

h) Excess Stocki) S&OP Inputsl) BW Monthly GMs

SPECIFICm) Sales SKU fcstn) Buying Groups Total Fcsto) Previous year orderbook (same period)

Monthly Key Process - Operational Demand Plan (ODP)

Monthly Analyses

DFA AGG resultsWhen Beginning M+2Who Planning, MKTG, SalesFocus M+1What Actual demaand vs Fcst

ODP Follow up

When WeeklyWho PlanningFocus CM/M+1What Demand vs plan

DP enrichment

Outcome

DP Update

ODP Submission

Whirlpool EuropeSkills & Competencies

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LogisticsStaffProject Set-up High Level Mapping Skills Inventory Standard Role Skills Assessment

Snr Logistics Staff

Project Team

Project Team Project Team

Functional Champions

Project Team

Functional Champions

LogisticsStaff

Snr Logistics Staff

Functional Supervisors

Central Organization Design

Central Organization Design

Central Organization Design

DELIVERY

WHO

Common approach within Operations

Key disciplinesidentification by

Function

Skills needed forbusiness results

achievement

Requisite set of skills by Function& Functional Area

Function’s competencyconsistency

GoNo-Go

GoNo-Go

Skills & Competencies

� Project Macro Steps

� Macro objectives definition� Methodology & tools identification

� Org. charts gathering� STD functional scheme definition� Job titles/activities mapping� Reference job titles list� Role/Level by job titles� Functional Champions identification

� Skills mapping by Function/ Functional Area� Skills macro-groups identification� Progression steps (1 to 5)� STD value definition

� Roles & skills progression matching

� Self Assessment� Supervisors’Assessment� Calibration

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Skills & CompetenciesNext steps

MAINTAIN IMPROVE BREAKTROUGH

Day by Day activities support

Focus on:BASIC TOOLS & PROFESSIONAL

EXPERTISE

Supply Chain StrategyFunctions mission/goals

PMP discussion

Focus on:Ad hoc RECOVERY

PLANSUPPLY CHAIN

“TOP 5 “

Focus on:TALENT POOL

KEY PEOPLE/POSITIONSDEVELOPMENT ACTIONS

� Process Steps in defining Gap Recovery Plan