VELOCITY VIDEO CASE HISTORY
A partnership for parts
WHEN YOU’RE ONE OF THE LARGEST APPLIANCE
Corporation knows that its parts distribution network must
be even more reliable than the major appliances it provides.
That belief aligns with Whirlpool’s recognition that excelling at
customer service is its top priority.
To help ensure that it’s able to provide top-notch customer
service, Whirlpool carefully selects its distribution
partners for their ability to offer creative approaches
and a variety of solutions to all distribution opportunities. One of the company’s key partners is Ryder.
Ryder’s associates bring Whirlpool an innate ability
to collaborate and innovate, resulting in continuous
improvement in its operations.
Ryder has been managing Whirlpool’s parts distribution operation in Plainfield, Ind., since 2001. The
operation there comprises two buildings of more
than 1.2 million square feet of processing space.
“It’s been a very good partnership that we’ve had,”
says Mike King, operations manager for Whirlpool. “They have been an
excellent partner for us here on-site.”
Ryder brings Whirlpool distribution expertise that has led to
improved processes and reduced expenses at the same time that the
facility has taken on additional volume, allowing Whirlpool to consoli-
date and streamline its operations. One huge change occurred in 2008,
when the facility absorbed parts fulfillment for Maytag appliances fol-
lowing the Whirlpool-Maytag merger.
A COLLABORATIVE APPROACH
The Plainfield distribution operation provides repair and replacement
parts for every appliance that Whirlpool manufactures, such as clothes
washers and dryers, refrigerators, dishwashers, air conditioners, and
other products sold under the Whirlpool, Maytag, Jenn-Air, Kitchen
Aid, Amana, and other brands. It ships these parts throughout North
America as well as to customers in 74 countries worldwide.
Sophisticated technology provides fast, accurate order processing. As
many as 150,000 parts are handled daily in Plainfield, with more than
95 percent of them piece-picked. Pick-to-light, voice, and RF (radio
frequency) are all used to direct various portions of the parts picking
operation. Whirlpool and Ryder also incorporate Lean principles and a
culture of continuous improvement here.
“We collaborate to identify issues, and we then implement solutions
that improve the service and reduce costs,” King says.
The two companies recently worked together to begin direct shipments into Canada, which eliminated the need for
a separate warehouse north of the border. Another
collaborative effort was the implementation of a new
incentive program for facility employees, known as
Ryder Rewards.
“The Ryder Rewards program started approximately two years ago. We were looking at creative ways
to maintain our work force and to reward our high
performers. It also gave us some cost savings as far
as productivity improvements, and that better serves
Whirlpool, our customer,” explains Todd Atkins – sec-ond-shift operations manager.
Established labor standards are used to determine the base level
of performance for every type of work, including travel between tasks.
Large screens mounted throughout the buildings display how each
employee is operating, so that associates can adjust their performance
to meet their own personal goals. Incentives are earned with an
emphasis on completing work at a steady pace, with top performers
taking home up to $120 more per week.
Both Ryder and Whirlpool see their collaboration as more than
simply that of provider and client. They take the long view of their relationship, looking for ways both companies can benefit from partnering
together. And so far, it has been very effective. The Lean practices and
incentives have increased productivity by 33 percent, while order accuracy has remained high at 99. 7 percent. Since teaming up with Ryder,
Whirlpool has seen its overall distribution costs drop by a third.
“We’re now running Whirlpool and Maytag brands together for
almost the same cost as it was with just Whirlpool before,” reports Paul
Vollmer, senior director of customer logistics at Ryder.
SPONSORED CONTENT
To see a video that further explains the Ryder Rewards program at the Whirlpool
distribution center, go to dcvelocity.com and click on the Performance Profile.
Whirlpool Corporation and Ryder have teamed up to assure that repair and
replacement parts are distributed accurately, on time, and undamaged.
A DC VELOCITY SPEED CHALLENGE
