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Maytag Business Integration Integrating Two World Class Supply Chains

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Title: Maytag Business Integration Integrating Two World Class Supply Chains

1
Maytag Business IntegrationIntegrating Two
World Class Supply Chains

Supply Chain Management
Steve Whalen
Chris Richards
Trish Vigansky
Ellie Lundberg
Kevin OMeara

2
Detroit Tigers New Agenda Tonight
3
Agenda

Introductions and Structure Kevin OMeara
Overall Project Management and Scope Trish
Vigansky
International Integration Activities Ellie
Lundberg
Physical Network Integration Steve Whalen
Systems Integration Chris Richards
Questions and Answers All

4
The Presenters.

Trish Vigansky

Responsible for our inventory deployment /
management
Overall Supply Chain Project lead reporting to
Brian Hancock, VP Supply Chain and the Corporate
PMO

5
NAR Supply Chain Leadership Staff
6
Agenda

Introductions and Structure Kevin OMeara
Overall Project Management and Scope Trish
Vigansky
International Integration Activities Ellie
Lundberg
Physical Network Integration Steve Whalen
Systems Integration Chris Richards
Questions and Answers All

7
Supply Chain Management Integration Scope

Integration Objectives
Deliver business case efficiencies
Integrate systems processes
1 order 1 delivery 1 invoice

8
Maytag Integration Project Structure Supply
Chain
Formalized project management structure utilized
to manage integration
9
Maytag Integration Project Structure
34 projects underway to deliver integration
commitments
10
Maytag Business Case
Logistics Roadmaps
Total Whirlpool Business Case Efficiencies
400 Million Driven primarily by efficiencies in
Manufacturing, Procurement Logistics

Elimination of Private Fleet
LDC Integration and Consolidation
Logistics Procurement
RDC Integration and Consolidation
SOP Process -Production Planning
SOP Process - Demand Forecasting
Home Depot Delivery
FDC Consolidation
Inbound Transportation
International Logistics
Logistics Staff Consolidation
Call Center Consolidation

Savings formally tracked in Roadmapping tool by
milestone. . . with detailed back-up required to
document attainment of efficiencies
11
Maytag Integration Order-to-Cash Map . . . after
systems consolidation
On October 30th . . .
Two delivery documents, one at each warehouse
Invoice
Order
Delivery Documents
Integrated routing enables multiple shipments on
one truck for 40 of deliveries
WHR MYG brands can be combined on one order in
SAP - requires one sold-to number for TP -
consolidated payment terms - capability to
leverage
Invoice
Two Invoices, One Payer Account
Two warehouse inventory locations
1 order . . . 2 deliveries . . . 2 invoices
12
Future State Order-to-Cash Map
In 2nd quarter 2008 . . .
Delivery Document
Shipment
Order
Trade Partner
Brands can be combined on one order in SAP
Invoice
Consolidated RDC Warehouse - one inventory
location for MYG WHR brands
One consolidated warehouse enables one invoice
1 order . . . 1 delivery . . . 1 invoice enabled
by Network Consolidation
13
Change Management Scorecard
Testing and Program Level Updates to Track
Overall Project Status also included
14
Agenda

Introductions and Structure Kevin OMeara
Overall Project Management and Scope Trish
Vigansky
International Integration Activities Ellie
Lundberg
Physical Network Integration Steve Whalen
Systems Integration Chris Richards
Questions and Answers All

15
International Integration Activities

CURRENT STATE
Scope Integrate Three Business Units
Whirlpool International Business
One entity per region / one system per region /
one global process
Maytag International Business
Two entities / two systems / two processes

FUTURE STATE
Transition Two States
Interim State
Operate two systems in the US
July - October
Final State
Operate one system in the US

16
Process Change
As-Is Centralized Order Management
International Customers send their orders into
Schaumburg
Schaumburg receives the order and manages until
fulfillment
Warehouse picks and loads the order per
Schaumburgs instructions
Order is shipped per the Customer Instructions
To-Be Regional Order Management
Regional contacts enter order into appropriate
system and send to Hilltop
Warehouse picks and loads the order per
Hilltops instructions
International Customers send their orders into
appropriate Region
Hilltop receives the order and manages until
fulfillment
Order is shipped per the Regional and Hilltops
Instructions
17
Areas Of Impact Scope - Method

Process Freight Forwarder, terms
Inventory On Hand or Build to Order Shared
Inventory
Shipments Mixed Loads, Spare Parts
Documentation Flow FDC RDC
Shipment Flow - Port Distribution ASN
Customs Compliance

18
Agenda

Introductions and Structure Kevin OMeara
Overall Project Management and Scope Trish
Vigansky
International Integration Activities Ellie
Lundberg
Physical Network Integration Steve Whalen
Systems Integration Chris Richards
Questions and Answers All

19
2006 Combined Whirlpool Maytag U.S. Appliance
Distribution Network
Trade Partner
Trade Partner
Supplier
Supplier
42 M
117 M
180 M
62 M
100 M
161 M
48 M
Factory
Factory Distribution Center (FDC)
Regional Distribution Center (FDC)
Local Distribution Center (FDC)
119 M
Trade Partner
Home
830 M Combined Spend (Duplicate Network)
20
Distribution Network Engineering and Consolidation
Legacy Whirlpool Distribution Network
Legacy Maytag Distribution Network
21
Results - Whirlpool 2008 Distribution Network
We must build, re-locate, bid, and/or shut down
over 75 facilities (approximately 1 facility/week)
22
Inbound Logistics Consolidation
Integrate MYG Inbound Logistics into Whirlpool
Centrally Controlled Inbound Network
MYG/WHR Future State Centrally Routed
Transportation (WHR process)
MYG Current State Factory Routed Transportation
Key Challenges 1) Engineering 2) Loss of
Control by Factories 3) Determination of
Savings (supplier changes)
23
FDC Consolidation
Eliminate FDCs at Closed Factories
WHR/MYG Current State
WHR/MYG Future State
Key Challenges 1) Post Closing Announcement
Productivity 2) Property Disposition
24
RDC Consolidation
Consolidate Duplicate RDCs
WHR/MYG Current State
WHR/MYG Future State
Key Challenges 1) Funding (Zenith - 500 M
) 2) Operational Efficiency (Size) 3) WM
Functionality
25
LDC Consolidation
Consolidate Duplicate LDCs
WHR/MYG Current State
WHR/MYG Future State
Key Challenges 1) Engineering 2)
Procurement (specialized providers) 3) Service
Disruption
26
Agenda

Introductions and Structure Kevin OMeara
Overall Project Management and Scope Trish
Vigansky
Physical Network Integration Steve Whalen
Systems Integration Chris Richards
Questions and Answers All

27
Purpose (Planning)

Integrate Maytag Existing locations and products
into the Whirlpool Planning Environment
Support of activities required to build Maytag
product inside Whirlpool facilities and
distribute that product back into the Maytag
network
Support taking an order in SAP for Maytag Product
in the October time frame

28
Current Planning Landscape
WISE Data W/H
Adexa
Shipments

Historical orders
Fcst
Inventory levels
Production Sch

Orders

Fcst (Appliances)

Fcst
COMPASS

Returns
Inventory levels
Deployment
Planning

Historical Shipments Inventory Levels Production
Schedule

Order Entry
Load Consolidation
Shipment Builder

MAYTAG
Deployment Targets

Target Setting

MRP
WIP Inventory
Raw Material Inv
G/L

Quantum Pull and Flex
Production Schedule
Production Recommendations
PRMS

Forecasting

I2-DP

Orders
Shipments
Inventory levels
Intransits

LOGICS
Forecast
Delivery information
WHIRLPOOL

Order Entry
Inventory Levels
Load building

Warehouse Mgmt

Deployment Planning
Master Planning
Inventory Planning

Inventory levels
Delivery information

Warehouse Mgmt

Deployment Plan
Production Plan

I2-SCP
SAP
SAP

Production Plan
(outside of firm)

Production Plan (firm)

WMCS
Production Crates

Detailed Sch
MRP

29
Phase I--Forecast Goes Early
WISE Data W/H
Adexa
Shipments

Historical orders
Fcst
Inventory levels
Production Sch

Orders

Fcst (Appliances)

Fcst
COMPASS
Historical Shipments Inventory Levels Production
Schedule

Returns
Inventory levels
Deployment
Planning

Order Entry
Load Consolidation
Shipment Builder

MAYTAG
Deployment Targets

Target Setting

MRP
WIP Inventory
Raw Material Inv
G/L

Quantum Pull and Flex
Production Schedule
Production Recommendations
PRMS
I2-DP
Maytag
Whirlpool

Orders
Shipments
Inventory levels
Intransits

LOGICS
Forecast
Delivery information
WHIRLPOOL

Order Entry
Inventory Levels
Load building

Warehouse Mgmt

Deployment Planning
Master Planning
Inventory Planning

Inventory levels
Delivery information

Deployment Plan
Production Plan

Warehouse Mgmt

Production Plan
(outside of firm)

I2-SCP
SAP
SAP

Production Plan
(firm)

WMCS
Production Crates

Detailed Sch
MRP

30
Phase II--Order taken in SAP
WISE Data W/H
Adexa
Shipments

Historical orders
Fcst
Inventory levels
Production Sch

Orders

Fcst (Appliances)

Fcst
COMPASS
Historical Shipments

Returns
Inventory levels
Deployment
Planning

Order Entry
Load Consolidation
Shipment Builder

MAYTAG
Deployment Targets

Target Setting

MRP
WIP Inventory
Raw Material Inv
G/L

Quantum Pull and Flex
Production Schedule
Production Recommendations
PRMS
SAP Shipments Inventory Levels Production Schedule
BW
I2-DP
Maytag
Whirlpool

Orders
Shipments
Inventory levels
Intransits

LOGICS
Forecast
Delivery information
WHIRLPOOL

Order Entry
Inventory Levels
Load building

Warehouse Mgmt

Deployment Planning
Master Planning
Inventory Planning

Inventory levels
Delivery information

Deployment Plan
Production Plan

Warehouse Mgmt

Production Plan
(outside of firm)

I2-SCP
SAP
SAP

Production Plan
(firm)

WMCS
Production Crates

Detailed Sch
MRP

31
Phase III--Move MP and DPL
WISE Data W/H
Adexa
Shipments

Historical orders
Fcst
Inventory levels
Production Sch

Orders

Fcst (Appliances)

Fcst
COMPASS

Returns
Inventory levels
Deployment
Planning

Order Entry
Load Consolidation
Shipment Builder

MAYTAG

Target Setting

MRP
WIP Inventory
Raw Material Inv
G/L

Quantum Pull and Flex
Production Schedule
PRMS
I2-DP
Maytag
Whirlpool

Orders
Shipments
Inventory levels
Intransits

LOGICS
Forecast
Forecast
Delivery information
WHIRLPOOL

Order Entry
Inventory Levels
Load building

Warehouse Mgmt

Deployment Planning
Master Planning
Inventory Planning

Inventory levels
Calendars, Capacity Engr Models, Components
Delivery information

Deployment Plan
Production Plan

Warehouse Mgmt

Production Plan
(outside of firm)

I2-SCP
SAP
SAP

Production Plan
(firm)

WMCS
Production Crates

Detailed Sch
MRP

32
Purpose (Warehousing)

Integrate Maytag Existing FDC/RDC Warehouse
locations into Whirlpool such that they can
Process SAP deliveries/shipments by October
deadlines
Maintain Accurate Inventories and mechanisms to
verify and adjust these Inventories with SAP as
the Master Inventory System
Interact appropriately to other Areas of the
business such as Manufacturing, Finance, and
Sales

33
Current Landscape
WISE Data W/H
Sales Data Orders Master Data