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WHIRLPOOL – Integrated Supply Chain PowerPoint Presentation
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WHIRLPOOL – Integrated Supply Chain

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WHIRLPOOL – Integrated Supply Chain

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  1. Whirlpool corporation WHIRLPOOL – Integrated Supply Chain

  2. Every home, everywhere World headquarters in Benton Harbor, Michigan World’s #1 major appliance company $18+ billion in revenues in 2010 Products sold in more than 130 countries 71,000 employees 66 manufacturing and technology centers

  3. North America Region manufacturing locations Amana, Iowa--Refrigerators Ottawa, OH--Freezers Tulsa, OK - Cooking Ft. Smith, AR - Refrigerators Clyde, OH--Washers Marion, OH--Dryers Findlay, OH--Dishwashers Ramos Arizpe, MEX--Refrigerators Greenville, OH--Portables Monterrey, MEX—Refrigerators/Washers Cleveland, TN--Cooking Celaya, MEX—Cooking/Refrigerators

  4. WHIRLPOOL OHIO OPERATIONS The largest manufacturing center for appliances in the North America Findlay Division Dishwashers Clyde Division Clothes Washers Ottawa, Ohio Freezers Marion Division Clothes Dryers Columbus RDC Full Mix Distribution Center Greenville Division Stand Mixers 30th largest employer in the state with 10,000 employees

  5. Current Environment • Consumer confidence still low • Influences the way consumers buy appliances • Sustained level of high unemployment • New and existing home sales have stabilized over last few months, but remain at all time low • Retail markets have lost momentum VOLATILE DEMAND ENVIRONMENT…. REQUIRES A VERY FLEXIBLE AND PREDICTABLE SUPPLY CHAIN

  6. Integrated supply chain model and deliverables Supplier Manufacturing Outbound Logistics JIT Supply to Clyde Local - from mfg location Distant – supplier managed local warehouse Tier 1 manages Tier 2 World Class Quality Low cost Highly flexible Stable, predictable and reliable Small batch size Minimal supplier inventory Build to order Ship directly off of assembly line rather than ship from inventory Extraordinary product availability Agile supply chain delivering best quality, best delivery and best cost Presentation Title

  7. Keys to supply chain success Distribution Center Whirlpool Factory Customer Parts Supplier • World Class Quality • Quality parity is a losing proposition • Demonstrated capability (supplier audit, PPAP, on-going performance) • Volume and mix flexibility • Requires entire supply chain (incl. plant) to be responsive to changes • Ability to deliver product in a predictable and reliable way • Commit to a plan and deliver the plan • Prefer supply from supplier location or local warehouse • Synchronized to daily / hourly pull signal • Low working capital • Low in-process and finished goods inventory levels

  8. Keys to supply chain success Competitive cost structure and competence for cost management • Capability to deliver year over year cost reduction • Competitive total landed cost • 90 day pay terms Manage complexity brought about by product differentiation • Processes / systems to deal with component variation Exceptional technical competence • Open, candid and willing to work closely with Whirlpool’s team Distribution Center Whirlpool Factory Customer Parts Supplier Partner with Whirlpool and deliver best quality, best delivery and best cost

  9. Whirlpool corporation Thank you Jeff Durham, Vice President, Clyde Operations jeff_durham@whirlpool.com