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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