Whirlpool Corporation Global Procurement

WHIRLPOOL CORPORATION GLOBAL PROCUREMENT |
Cost Analysis |
Whirlpool is the world’s largest producer and marketer of small and large home appliances such as mixers, food processors, washing machines, refrigerators, air conditioners, etc. Whirlpool also has a long standing relationship with Sears, which sells Whirlpool products under the brand name Kenmore. In addition to its North American presence (both manufacturing and sales), Whirlpool also has a strong presence in Mexico, and Europe. Being the largest producer in the world has helped Whirlpool to compete on lower costs through economies of scale and through its Global Procurement Organization (GPO).

In addition, its large networks also help in distribution, marketing, and ultimately in its sales. Another key factor how it competes is through its relationships with customers such as Sears. Our cost model was based on the “Principles of Cost Modeling” from the article Competitive Cost-Analysis: Cost-Driver Framework by Timothy Laseter, et al. Based on the article, we continuously pondered over not only the cost elements, but also the cost drivers, so as to get a better picture and to arrive at a more accurate analysis.
To capture all the elements, we constructed our own template, so that we could customize it to Whirlpool, so as to capture as many cost drivers as possible. In addition, to ensure that we accounted for all parts contributing to the actual cost, we thought about total cost of ownership and considers drivers such as transportation, taxes, duties, etc. Initially, we just dived in to the data and made the process very complicated, thereby making very little progress, so we stepped back and reconstructed our entire process with some basic cost drivers, upon which we continued to add layers. Under the cost-driver framework, cost elements are categorized into Design, Facility, Geography and Operations. We believe that there are multi-level cost-drivers under each…

Don't use plagiarized sources. Get Your Custom Essay on
Whirlpool Corporation Global Procurement
For as little as $15/Page
Order Essay
Order your essay today and save 25% with the discount code: THANKYOU

Order a unique copy of this paper

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
Top Academic Writers Ready to Help
with Your Research Proposal
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 25% with the discount code THANKYOU