Case Whirlpool

In: Business and Management

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GLOBAL SOURCING

Strategic Soucing at Whirpool China Finding the ideal supplier
CASE ANALYSIS
Assignment 1

STRATEGIC SOURCING AT WHIRLPOOL CHINA FINDING THE IDEAL SUPPLIER
CASE ANALYSIS

1. What are the key problem areas for Whirlpool?
Finding the right supplier.

2. What is the importance of strategic sourcing?
Sourcing the right components is the first step in launching the new product.

3. What are the pros and cons of Whirlpool’s global sourcing strategies?
Cons: Payment terms.
Pros: To avoid delays in launching the new product.

4. How are suppliers identified, evaluated and selected?
It was necessary to define the commodity and allocate responsibilities and resources through co-ordination of global and regional activities.

Using the Sourcing Strategy Development (SSD) process in 4 steps:

Step 1: internal analysis, identified and prioritized the process –partner requirements, then evaluated the performance of the existing supply base and reviewed the existing supply base, it also identify the switching costs.

Step 2: external analysis, which includes analysing the supplier industry and competitors and evaluating competitor performance and strategies. The evaluation process makes use of SWOT (Strength, Weakness, Opportunities, Threat).

Step 3: strategy development, is to analyse the competitiveness and their financial impact. Preliminary negotiations could be carried out, a suitable strategy and suppliers should be selected and the critical path for implementation should be defined.

Step 4: implementation, wherein the planned strategy is put into play, give feedback to the chosen process partners and suppliers and final negotiations will be nailed down.

5. What do you think of the evaluation process?
There are some issues with the corporate-level and the global-level and to find the right region or country…...

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