Whirlpool Corporation Essay Example | Topics and Well Written Essays - 1750 words

Whirlpool Corporation - Essay ExampleBetter sourcing or hearty management was becoming critical.3. Market The market was demanding and continuous to demand low cost and recrudesce products for the house hold sector. They looked for a better product but that had to come at a footing lesser than the earlier one with lesser features.These key reasons made Whirlpool look for an enterprise huge automation. The corporeal sourcing issues were reflected in the price of the components and as well in the cost of the raw materials which in turn bring itself to an increase in the product price. This increase in the component and the raw material cost also wanted the products to be at the same price train or lower price level for end user customers. If this has to happen the operating cost has to come down and the total cost of intersection needs to get reduced. This could happen only if there is an increased quantities getting produced for the same inputs in monetary value of people an d other consumables.In addition to these, the go with also has to keep its new innovations always coil out. Unless there are new ones coming up in the market, the company would lose its pre-eminence and would start tracking others as market leaders. This also the company cannot afford to happen.Cost reduction is one of the major issues that the company was fighting against. In order to bring down the cost of production, it is important that the company follows the latest material management techniques and also take recourse to global sourcing of components from the places that are cheaper vis--vis the current suppliers. The company therefore, had to source material from Asian countries and these vendors had to be coordinated and monitored to ensure Kanban pull working on the stock systems already in place. Therefore, a system that would unite the materials management in US or European factories and that of the vendor companies locate