“The growth in our contract business and the acquisition
[of Maytag] triggered a full-scale network redesign,” says
Hancock. “We had changed our products. We wanted to
[rethink] how we deal with high-volume and low-volume
SKUs (stock-keeping units).”
As for the redesign’s objectives, Whirlpool’s overarching
goal was to create a network that would ensure swift deliveries to customers—a process complicated by the expansion of its product offerings in recent years. But that was
just the beginning. The company also wanted a distribution
model that would allow it to consolidate shipments of slow-er-moving stock-keeping units while providing a free flow
of high-volume SKUs. In addition, Whirlpool wanted to
take advantage of time-saving techniques like cross docking
at its regional distribution facilities. On top of that, the
appliance maker was looking to make its network as cost
effective and as energy efficient as possible.
In the end, the redesign team came up with a strategy that
would not only meet the company’s cost and service objectives, but would also be environmentally sustainable, with
energy-efficient warehouses and cleaner equipment.
Although the plan required an investment in new buildings
and equipment, it is expected to produce considerable savings over time. “In the long term, it’s the low-cost solution,”
says Hancock. “And that’s what makes it good for business
and the environment. That’s what sustainability is all about.”
WHIRLPOOL CORP.
Greener, cleaner buildings
Although Whirlpool has completed its supply chain
redesign plan, the actual work won’t be finished until sometime this year. Part of the holdup has been the construction
of new facilities. The acquisition of Maytag forced
Whirlpool to look at ways to rationalize its plant and distribution network. One result of the review was the decision
to consolidate buildings and replace older distribution centers with new, energy-efficient facilities.
The new distribution centers will conserve electricity by
using energy-efficient lights, skylights (in some locations),
and motion sensors to turn lights on and off automatically.
By adopting more energy-efficient practices, Whirlpool will
also reduce emissions of the greenhouse gases that many
scientists believe contribute to global warming. “That all
adds up to a lower carbon footprint,” says Hancock.
By year’s end, Whirlpool will have added 10 new energy-
