The first contributor to Whirlpool’s success was the fact that Slone’s strategy realized that the problem facing the supply chain was a result of not only an old system in place, but also because of inefficient or poor management of the supply chain. In this regard, the solution was not only directed at improving the individual links such as the existing suppliers, logistic partners, etc. but rather it also involves completely changing the process of how supply chain is managed. In which case, it thus means modifying the entire procedures and system as well as the way the company managed the supply chain. Likewise, it asserts the proactive role of top management down to bottom-line employees who are involved in the total distribution of goods and services.
Secondly, the company ...view middle of the document...
Thirdly, building better expertise in the application of decision support and IT tools such as CPFR and i2 to identify patterns, assess potential performance, and manage newly developed processes was an excellent move on the part of the planners. Benchmarking best practices in forecasting led Whirlpool and some of its key trade partners to believe that CPFR offered a significant opportunity for improvement in the area of forecasting. The end result was that Whirlpool and its trade partners saw a reduction in weekly order variability due to improved forecasting and a less reactive stance by trade partners to take corrective action in order variability.
For me, the most important success contributor was the fact that Slone’s strategy was actually forward looking and anticipated the need not only to take care of the present problem, but also innovate to accommodate future changes. By identifying the probable range of future operating scenarios based on industry, economic, and technological trends, whirlpool was able to position itself for the constantly evolving business environment. Slone’s strategy has stood the test of time and it continues evolve, thereby guaranteeing a place at the table for the company. Since these changes were implemented, there is been an 80% turnaround in consumer confidence and sale of Whirlpool products. This particular case hits home for me because currently at Best Buy, we sell more Whirlpool products than other competitors in this category. We can conveniently say this is as a result of success of Mr. Slone’s strategy.
In closing, I think it is extremely important that all turnaround strategies should imbibe the holistic nature of change. Transformational change requires attention to people, process, organizations, rules, data, applications, and technologies to make up a transformational business practice.