PSPL
Whirlpool Europe
Supply chain introduction
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 )
LEAD to WIN
• Whirlpool Europe Supply Chain strategy
• Whirlpool Europe Employees Engagement
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PSPL
World Leader in Domestic Appliances
WHIRLPOOL CORPORATION
Operates in 170 countries
40% bigger than nearest competitor
95 years specialist in home appliances
“At home” in over 200’000’000 households world-wide
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Whirlpool
Corporation
Today
World
Leader in
Domestic Appliances
The 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
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PSPL
Brand Portfolio
We Touch All Key Consumer Segments
Cooking passionates
Creative & modern mentality
Look for professional-like results
Premium segment
Quality minded
Very brand conscious
Home enthusiast
Up market
Style and design minded
Time pressure
Fashion oriented
Technology / design driven
Mass market
Young families
Value sensitive
Passionate about simplicity
Looking for reassurance
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Whirlpool
values
The Essence of
Whirlpool’s
Five Values in 2007
Respect
Respect others and believe in individual ability
Integrity
Always do the right thing
Diversity and
Inclusion
Make the most of diversity to obtain better results
Teamwork
Achieve more working together
Spirit of Winning
Win in business by winning
The hearts and minds of our customers
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PSPL
Whirlpool in Europe
Whirlpool in Europe
Whirlpool in Europe
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
Factories
European Operations Centre
. S.Africa.
27
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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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PSPL
Supply Chain Process
S&OP
Order Intake
Order mgmt
Supply Planning
Production Planning
Demand mgmt
Built To Order
Make To Stock
Deliver From Stock
Footprint design
Distribution mgmt
Logistics providers
selection & negotiation
Carriers mgmt
Warehouse mgmt
Service level mgmt
Factories
Customer
Order To Delivery
Suppliers
Trade
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Supply Chain Business Models
Suppliers
Factory
FDC/CDC
RDC
TP’s
Customer
PUSH - Forecast driven
PULL - Order driven
MTS
Make To Stock
Forecast
Order
VMI
Vendor management inventory
Forecast
Stock re-fill
USS
Upstream Stock
Forecast
Order
BTO
Forecast
Built To Order
Order
Decoupling point = point synchronisation between TP order and supply
WE business models well supported by organisation, processes and systems
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PSPL
Planning Processes & time horizons
Week 1
Month (M)
Week 2 Week 3
M+1 to current year end
M+1
M+2 M+3 M+4 M+5
Week 4
M+12
Next Year
Weekly buckets rolling
Forecast
Forecast at SKU / location level / category,
including OSP generation
Visibility
only
Mid to Long term Demand Plan
Daily buckets rolling
Supply Plan by SKU / Location
Distribution planning
Supply Plan
Mid to Long term Demand & Supply Matching
Daily buckets rolling
Production Schedule
Frozen
Liquid
Visibility, planning in SNP
Pre-seq
Daily run
Component
requirements
Weekly / Monthly
MRP run
Daily buckets rolling
Deployment
Deployment plng.
SKU/location
Deployment
Execution
Profit plan per SKU / Market Oct/Nov
For coming year
Profit Plan / Budget
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Whirlpool Europe’s
delivery models
Factory DCs’
M
TS
BBP’s
BTO / DD
Regional DCs’
Trade
Consumer
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PSPL
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
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Whirlpool Europe
KPI
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PSPL
Whirlpool Europe KPI
• Markets
• ATR
• DTP
• DFA
• DOS
available to request
Delivery to promise
Demand forecast accuracy
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
Frozen
Planning
Mid/Long Term
Call-Off
Call-Off
Forecast
Forecast
FDC
SCM
Market
OTD-RDC
Market
Market
OTD-Planning OTD-TP’s Serv
Liquid
Capacity
Capacity
Panning
Panning
GM
GM
S&OP
S&OP
TP’s
Customers
Monthly
Monthly
ODP/PP
ODP/PP
DFA-AGG
DFA-AGG
Call-Off
Call-Off
Fixed
Fixed
Daily
Daily
Plan
Plan
Daily
Daily
Planning
Planning
Weekly
Weekly
Forecast
Forecast
DFA-SKU
DFA-SKU
Short Term
DOS
DOS
Frozen
Plan
Transit
Stock
Execution
Normal Sales
Orders
Orders
Submission
Submission
Orders
Orders
Entry
Entry
Orders
Orders
Submission
Submission
ATP
ATP BI-CATR
BI-CATR
Material
Material
Delivery
Delivery
SQR
SQR
Production
Production
Execution
Execution
PSA
PSA D/W
D/W
Blocked
Blocked
Products
Products
BTO
Orders
Orders
Entry
Entry
Production
Production
Execution
Execution
PSA
PSA D
D
Process discipline & data accuracy key elements
FDC
FDC
Shipment
Shipment
DOS
DOS
Orders
Orders
Mgmt
Mgmt
SER
SER
GIT
GIT
DTP
DTP
DTR
DTR BI-CDTR
BI-CDTR
RDC
RDC
Delivery
Delivery
Orders
Orders
Mgmt
Mgmt -- BTO
BTO
BTO
BTO FR
FR
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PSPL
KPI Description
Example
Title:
Title: Available
Available To
To Promise
Promise (ATR)
(ATR)
Description:
Description:
ItIt measures
measures our
our ability
ability to
to promise
promise on
on the
the TP’s
TP’s request
request (product,
(product, quantity,
quantity,
requested
requested delivery
delivery date)
date) at
at the
the time
time of
of order
order entry.
entry.
Frequency:
Frequency:
A
A Trade
Trade Partner
Partner request
request (product,
(product, quantity,
quantity, requested
requested delivery
delivery date)
date) is
is
considered
considered successful
successful when
when the
the product/quantity
product/quantity is
is promised
promised at
at the
the requested
requested
delivered
date
(first
commitment).
delivered date (first commitment).
Formula
Formula Description:
Description:
Element
Element of
of count:
count: successful
successful requested
requested qty,
qty,
requested
requested qty
qty
Source
Source (Dept.,
(Dept., System,
System, Report
Report Name):
Name):
ATP
ATP == total
total successful
successful requested
requested qty
qty // total
total requested
requested qty
qty
Ownership
Ownership (Function,
(Function, Dept,
Dept, Name):
Name):
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Whirlpool Europe
Supply chain planning system architecture
9
PSPL
Key business requirements drove the design
of the to-be Supply Chain processes in scope
What-if-analysis
What-if-analysis
Exception
Exception based
based planning
planning
Supply
Supply chain
chain integration
integration
One
consensus
One consensus plan
plan
Constrained
Constrained Supply
Supply Planning
Planning
•• Material
Material Constraints
Constraints
•• Capacity
Constraints
Capacity Constraints
•• Transportation
Transportation Constraints
Constraints
Production
Production
Planning
Planning &
&
Scheduling
Scheduling
Demand
Demand Management
Management
Consensus
Consensus based
based forecasting
forecasting
Demand
Demand differentiation
differentiation // Order
Order type
type
visibility
visibility
Component
demand
planning
Component demand planning
Sales
Parts
Production
Production Planning
Planning &
& Scheduling
Scheduling
Improved
Improved feasibility
feasibility of
of production
production sch.
sch.
Order
type
visibility
Order type visibility
Critical
Critical components
components planning
planning
Full
Full BTO
BTO // DD
DD potential
potential
Supply
Daily
Daily planning
planningProduction
Frozen
period
Frozen period on
on daily
daily rolling
rolling horizon
horizon
Closed
Closed loop
loop planning
planning
Order Intake
Intake // GATP
GATP
Order
Order management
management
// Order
Mid
Term
Demand
Demand
Management
Management
Strategic
Material
Planning
Short
Term
Planning horizon
Long
Term
Constrained
Constrained Supply
Supply Planning
Planning
Full
Full BTO
BTO // DD
DD potential
potential
Forecast
consumption
Forecast consumption
Improved
Improved feasibility
feasibility of
of master
master schedule
schedule
Flex.
Flex. allocation
allocation of
of capacity
capacity to
to countries
countries
Daily
planning
Daily planning
Order
Order type
type visibility
visibility
Sales & Operations Planning
Inventory
Inventory target
target setting
setting
(i.e. Spring forecast, September forecast,
etc…)
Deployment
Deployment planning
planning
Order
Order intake
intake // GATP
GATP
service
Differentiated
Differentiated TP’s
TP’sTrade
service level
level
Distribution
Allocation planning
Allocation planning
Real
Real time
time order
order promising
promising
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Whirlpool process & System tree
Financial Target
Yearly / Half yearly
Profit Planning / Spring & September Forecasting
ESS BASE,
MS Excel, etc.
Profit Plan
Monthly/ Weekly
Demand Planning
Demand
Demand
Planning
Planning
Gross Demand Plan
Master Planning
Monthly /Weekly/ Daily
Net requirements /
Finished Good
Supply Plan
Production Planning
SNP
SNP
PP/DS
PP/DS
Daily
Production Plan
Production Execution
COPICS
Transactional
FG Stock
Deployment
SNP
SNP
Weekly / Daily
Deployment Plan
Transactional
Order
Execution
R/3
R/3
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PSPL
Whirlpool Europe
Supply chain planning
Demand Management
Demand Forecast...
A demand forecast will never be perfect.
However more reliable demand planning has implications:
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 Planning Process
Demand Planning is the APO Module used to update Demand Forecast
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11
PSPL
Monthly Key Process - Operational Demand Plan (ODP)
Participants
Objectives
ODP
ODP
OTD
Preparation
Preparation
Consolidation
Consolidation
Weekly / By weekly
Planning, Sales, (MKTG)
M+1 / M+2
Promo, Special Actions, BTO plans
Start CM
Planning, Sales, MKTG
M-1
Trends, Results vs plans
Finance
• Every month, w1/w2 (*)
(*) Iberia try to anticipate to last week M-1
Preparatory Meetings
M-1 Result
Meetings
When
Who
Focus
What
Sales
Timing
Submission
Submission
ACTIVITY
Meetings
When
Who
Focus
What
MKTG
Tools
ALL:
a) Previous ODP
b) Profit Plan
c) Future Promotions/BTO outlook
d) Previous month detailed results
e) PIPO outlook
f) Current Orderbook
g) Run Rates & historical by aggs
e)
h) S&OP
Excessinputs
Stock
i) S&OP Inputs
SPECIFIC:
l) BW Monthly GMs
h) Sales SKU Forecast (UK)
I)SPECIFIC
Buying Groups ToT Fcst (France)
l)m)Orderbook
previous
Sales SKU
fcst year (same period)
n) Buying Groups Total Fcst
o) Previous year orderbook (same period)
Outcome
DP Update
ODP Submission
ODP Follow up
When
Who
Focus
What
Weekly
Planning
CM/M+1
Demand vs plan
DP enrichment
Monthly Analyses
DFA AGG
results
When
Who
Focus
What
Beginning M+2
Planning, MKTG, Sales
M+1
Actual demaand vs Fcst
Focus
Focus on
on volumes
volumes ------->
-------> CM
CM // M+1
M+1 // M+2
M+2 onwards
onwards
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Whirlpool Europe
Skills & Competencies
12
PSPL
Skills & Competencies
Project Macro Steps
Project Set-up
High Level Mapping
Macro
objectives
definition
Methodology &
tools identification
WHO
Logistics
Staff
Org. charts
gathering
STD functional
scheme definition
Job
titles/activities
mapping
Reference job
titles list
Role/Level by
job titles
Functional
Champions
identification
Snr Logistics Staff
Skills mapping
by Function/
Functional Area
Skills macrogroups
identification
Progression
steps (1 to 5)
STD value
definition
Project Team
Project Team
DELIVERY
Common approach
within Operations
Key disciplines
identification by
Function
Skills Inventory
Go
No-Go
Logistics
Staff
Standard Role
Roles & skills
progression
matching
Skills Assessment
Self
Assessment
Supervisors’
Assessment
Calibration
Project Team
Project Team
Snr Logistics Staff
Functional Champions
Functional Champions
Functional Supervisors
Central Organization
Design
Central Organization
Design
Central Organization
Design
Skills needed for
business results
achievement
Requisite set of
skills by Function
& Functional Area
Go
No-Go
Function’s
competency
consistency
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Skills & Competencies
Next steps
Process Steps in defining Gap Recovery Plan
MAINTAIN
Day by Day activities
support
Focus on:
BASIC TOOLS &
PROFESSIONAL
EXPERTISE
IMPROVE
BREAKTROUGH
Supply Chain Strategy
Functions mission/goals
PMP discussion
Focus on:
Ad hoc RECOVERY
PLAN
SUPPLY CHAIN
“TOP 5 “
Focus on:
TALENT POOL
KEY PEOPLE/POSITIONS
DEVELOPMENT ACTIONS
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