Whirlpool Erp Implementation Case Study

WEST WAVE Estimated values with implementing ERP

1999 2000 2001 2002 2003 2004 2005

Revenue 477784 497193.98 529511.58 559627.55 559627.55 559627.55 559627.55

COGS 418925 435641.36 463958.05 490345.66 490345.66 490345.66 490345.66

Margin 58859 61552.61 65553.53 69281.89 69281.89 69281.89 69281.89

Margin % 12.32% 12.38% 12.57% 12.57% 12.57% 12.57% 12.57%

DSI 45.00 37.69 33.09 27.72 27.72 27.72 27.72

DSI improvement % 0.25 0.4 0.35 0 0 0

25% x DSI ImprovementX 65% = Estimated Revenue and COGS growth 0.040625 0.065 0.056875 0 0 0

DSI Value per day 1147.74 1193.54 1271.12 1343.41 1343.41 1343.41 1343.41

Inventory Value 51648.29 53709.21 57200.31 60453.57 60453.57 60453.57 60453.57

Assumptions

I calculated the sales growth by taking 25% of the percentage difference of DSI improvement and added it to the previous year X .65 ( I am estimating that 65% of the business is kitchen remodeling??

Same with COGS less margin improvement for those years that had it

DSI value per day is calculated by revenue / 365 days

Inventory value is DSI x DSI value per day

SOUTH WAVE Estimated values with implementing ERP

1999 2000 2001 2002 2003 2004 2005

Revenue 283549 283549 299675.85 319154.78 339899.84 339899.84 339899.84

COGS 237308 237302.16 250798.72 267100.64 284462.18 284462.18 284462.18

Margin 46241 46246.84 48877.13 52054.14 55437.66 55437.66 55437.66

Margin % 16.31% 16.31% 16.41% 16.53% 16.53% 16.53% 16.53%