CPFR at Whirlpool Corporation: Two Heads and an Exception Engine

CPFR AT WHIRLPOOL CORPORATION: TWO HEADS AND AN EXCEPTION ENGINE By Nikhil Sagar Describes in detail the pilot CPFR program with two retailers, why it was needed and how it helped … the new initiative substantially reduced forecast errors and smoothed the flow of orders … forecasts of trading partners were better aligned. Whirlpool Corporation is the world’s leading manufacturer and marketer of major home appliances, with annual sales of over $11 billion, 68,000 employees, and nearly 50 manufacturing and technology research centers around the globe. The company markets Whirlpool, KitchenAid, Brastemp, Bauknecht, Consul, and other major brand names to consumers in more than 170 countries. SUPPLY CHAIN STRATEGY AT WHIRLPOOL Historically, the Logistics Department at Whirlpool was regarded as the stumbling block to achieving sales targets. Forecast misses were often blamed on poor supply execution and inaccurate predictions of demand. In the summer of 2000, a significant reorganization resulted in the creation of a formal Supply Chain Department, led by Reuben Slone (Vice President of Supply Chain) and Paul Dittmann (Vice President Supply Chain Strategy). The mission statement ...