Case of Whirlpool

ECCH Collection

604-023-1

Operations at Whirlpool

This case was written by Poornima Pillai, under the direction of Shirisha Regani

and Sanjib Dutta, ICFAI Center for Management Research (ICMR). It is intended to

be used as the basis for class discussion rather than to illustrate either effective or

ineffective handling of a management situation.

The case was compiled from published sources.

© 2004, ICFAI Center for Management Research (ICMR), Hyderabad, India.

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604-023-1

OPERATIONS AT WHIRLPOOL

“Logistics is the most challenging of all business processes due to its extreme cross-functional

nature and this challenge increases exponentially in a global environment.”

-J. Paul Dittmannn, Vice-President, Whirlpool in 19971.

“We want to get the right product to the customer when they expect it. While that is a simple set of

outcomes, it is an incredibly complex set of activities that have to be orchestrated all the way to

our suppliers.”

-Reuben Slone, Vice-President of Supply Chain, Whirlpool in 20032.

INTRODUCTION

Whirlpool Corporation (Whirlpool) was the world’s leading manufacturer and marketer of home

appliances in the 1990s and 2000s. (Refer to Exhibit-I on the major appliance manufacturers in the

world). It led the appliance market in the United States and South America and was among the top

three manufacturers in Europe. (Refer to Exhibit-II on the appliance industry in the US). It was

also the largest western appliance manufacturer in Asia. The company was the leading

manufacturer of refrigerators, microwave ovens, washers,...