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Transcript of Lwm Presentation
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Nitin Baranwal (55)
Rajesh Kumar (67)
Saket Kr. Singh (74)
Shikha Gupta(83)
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Y ear 2000 ² Company supply chain staff were
considered as ¶sales disablers·
Y ear 2005 ² Whirlpool excels at getting right
product to right place at the right time while
keeping inventory low
What made the difference??
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Other Divisions :
Firing on all cylinders
SCM Division:
- Spotty Service
- High Logistics Costs
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Product Range: Washers
Dryers
Refrigerators
Dishwashers
Ovens
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Manufactures in 13 Countries
Sells in over 100 countries
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SCM Mission:
Deliver right product, to right place at right time ² all the time
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I. Devising the Strategy
II. Selling the Revolution
III. Getting FocusedIV. Engaging Talent
V. Sustaining Momentum
VI. On the Horizon
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High finished good inventory
Product availability 87%
Poor delivery performanceUse supply chain investment proposal/
new IT
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Understanding Customer Needs
Identifying Trade Partners· Priorities
Benchmarking the Competition
Building the Future
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Contrary to the traditional manufacturing
organization, to develop supply chain
strategy they started with the last link ² the customer ² and proceeded backward
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1. Understanding customers· needs :
BCG research findings Customer value ́ delivery with integrityµ
´Give a date, hit a dateµ
Psychology of delivery date
commitments2. Identifying trade partners· priorities :
Intermediate customers ² retailers e.g.
Sears, Lowes, Best Buy
Discovered 27 different dimensions of
performance that were important to
them
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3. Benchmarking the Competition :
Benchmarked main competitor :GECross-industry & competitive
intelligence from consultants AMR,
Gartner,Forrester Research
Mapped World Class performance on 27
capabilities
Prioritized ́ low hanging fruitµ
Plan was to meet or beat competition inmost areas at min. cost.
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4. Building the Future
IndustryEconomy and
Technical trend
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Maintain balance between seeking
guidance & selling your vision
Justify project on expense reduction & working capital improvements
Competitive analysis helped
Nemawashi ² consensus building
Explain how project includedsuggestions from others.
That·s how people came on board.
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New Sales & Operation Planning Process
Forecast that all participants can relate to
CPRF ( Collaborative Planning, Forecasting, and Replenishment) Pilot
Share forecast but not sensitive data behind the forecast
In 30 days f/cast accuracy error cut in half
Greater f/cast accuracy reduces excess Finished Goods inventory
substantially.
Disciplined Project Management Office
Time/budget/benefit Think big but focus on near-term deadlines.
Change effort broken down into 30 day chunks
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Talent renaissance
Climate of innovation excellence
Develop/ assess/ reward talent
Project Management Skills
Many new recruits
Advisory board
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High Volume SKUs
Plan to Sell
Better ServiceLevels
Low Volume SKUs
Build to OrderLower Service Level
System-to-System
Transactions
Partner Stores
(online delivery) Event ManagementTechnology
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It's great to improve forecasts, optimize transportation, and
speed up our processes with existing SKUs.
2001 ² Product availability 88.3%x Inventory holding 32.8 days
2003 ² Product availability 93% (Order fill rate 96%)
x Inventory holding 26 days
x Working capital lowered by almost $100 million and
supply chain cost by $20 million