greenlogistics
BY JAMES A. COOKE, EDITOR AT LARGE
THE BUSINESS CASE FOR SUSTAINABILITY
the appliance maker
taken the lead in
This story first appeared in the Quarter 2/2008 edition of CSCMP’s Supply Chain Quarterly,
a journal of thought leadership for the supply chain management profession. Readers can
obtain a subscription by joining the Council of Supply Chain Management Professionals
(whose annual membership includes a free subscription). Subscriptions are also available to
non-members for $89 a year. For more information, visit www.SupplyChainQuarterly.com.
the greening of
Whirlpool’s supply chain
At Whirlpool, being
FOR APPLIANCE MAKER WHIRLPOOL CORP., ENERGY-CONSERVA-tion and sustainability programs have never been just spin. The company’s
history of environmental activism dates back to the 1970s, when it was one of
the first businesses to set up an office of sustainability (the office focused on
product development). Whirlpool was also an early champion of Energy Star,
a U.S. government-backed program launched in 1992 to encourage the design
and manufacture of energy-efficient products; today, 590 of Whirlpool’s
products qualify for the Energy Star label. And in 2003, the company made a
public pledge to reduce its emissions of greenhouse gases worldwide.
It’s hardly surprising, then, that when it went to redesign its supply chain in the summer of 2005, Whirlpool took the opportunity to raise its eco-profile. Given the company’s support for energy conservation in product development, says Brian Hancock, vice
president of Whirlpool’s North American regional supply chain, it was natural for
Whirlpool to take the same approach to redesigning its supply chain. “Environmentalism
has been built into our company fabric,” he says, “and the supply chain is an extension of
one of the best corporate cultures [where sustainability is concerned].”
Still, this would be a formidable undertaking for a company of Whirlpool’s size and
scale. With annual sales of around $19 billion, Whirlpool is the worldwide leader in the
global home appliance market, selling refrigerators, washing machines, dryers, and other
appliances around the world under such brand names as Whirlpool, Maytag,
KitchenAid, Jenn-Air, Amana, Brastemp, and Bauknecht. Its supply chain network today
includes 20 plants in North America, 11 in Europe, three in Latin America, and six in
Asia. Whirlpool’s distribution network consists of plant warehouses or factory distribution centers, regional
distribution centers, and local distribution centers. (The latter are sites that Whirlpool uses to deliver its products directly to consumers, since many retailers have shifted that responsibility to the appliance maker.)
green is more than
just spin. Not only has
developing energy-
efficient products, but
it has also redesigned
its supply chain with
an eye toward con-
serving energy and
cutting air pollution.
Time for an overhaul
The redesign itself—Whirlpool’s first major supply chain overhaul in 20 years—was prompted by growth in
both its product portfolio and its “contract” business—sales to builders or companies that sell to builders.
The project took on even greater importance and urgency when the Benton Harbor, Mich.-based manufacturer acquired rival appliance maker Maytag in 2006.
