SUPPLIER SELECTION
WHIRLPOOL CORP :
REDUCING COMPLEXITY AND BOOSTING PERFORMANCE
Home Appliance Giant Whirlpool Corporation are Reducing Complexity , Increasing Procurement Resilience and Ultimately Benefiting Their Customers
WRITTEN BY : NEIL PERRY
The future of procurement at Whirlpool Corporation is “ poised for a transformative journey ,” explains David Nagy , Whirlpool Corporation ’ s Director of Global Strategic Sourcing .
Home to the likes of Whirlpool , KitchenAid , Maytag , Consul , Brastemp , Amana , Bauknecht , JennAir , Indesit , Yummly and InSinkErator , Whirlpool Corporation has delivered US $ 800mn in cost reductions in 2023 by moving away from a short-term tactical model , to a longterm strategic approach .
Against a backdrop of geopolitical uncertainty and consistent supply chain challenges , manufacturers around the world are trying to leverage the potential of their procurement operations and transforming their previously profitable operating models , to control costs , increase resiliency and support sustainability efforts . Whirlpool Corporation are already seeing the benefits of their strategic changes , as they start to show demonstrable benefits to their operational performance .
Procurement delivering cost savings A central part of the strategy has been close work with product design teams to find opportunities to reduce the complexity of designs . “ Procurement partners closely with engineering and manufacturing to identify opportunities to reduce part complexity by standardising designs , specifications , or materials across our products ,” says Nagy .
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