Appliance manufacturer signs enterprise agreement with CombineNet for large strategic sourcing projects based on previous successes
Pittsburgh — January 19, 2006 — Whirlpool Corp., a leading manufacturer and marketer of major home appliances, has signed an enterprise agreement tapping CombineNet to host several strategic sourcing projects in 2006. The enterprise agreement includes two transportation sourcing events, one for global ocean freight and one for North American truckload shipping, as well as an undisclosed number of additional sourcing projects.
The North American truckload project will employ CombineNet Truckload, a self-service advanced sourcing tool released in October 2005. Whirlpool previously worked with CombineNet on three other sourcing projects.
Whirlpool is committed to deploying CombineNet's technology throughout 2006 based on the tremendous success we've achieved in our previous projects, explained Steve Alsbro, Global Transportation Services Procurement manager. The ability to source and manage a very complex global shipping network, balancing value-based pricing with our customer expectations and meeting our business goals puts CombineNet in its own league, and that's a big reason why we use their software.
Alsbro said CombineNet's sourcing tools allow Whirlpool to collect more expressive offers from more suppliers. With CombineNet's optimization technology, Whirlpool Procurement and Logistics personnel have the ability to build scenarios that analyze supplier proposals along with Whirlpool's internal business objectives, including service levels, capacity and other typically intangible non-price considerations.
Alsbro added that CombineNet's intuitive solutions give Whirlpool the ability to minimize internal resources while condensing the sourcing cycle. The tools give Whirlpool the ability to quickly review various award scenarios, comparing price and non-price constraints to identify the optimal mix of suppliers who meet Whirlpool's business objectives, allowing Whirlpool's sourcing team to establish a true basis for the optimal total cost of procuring goods and services.
At the end of the day, it's about getting the best value from your suppliers, said CombineNet CEO Tony Bonidy. Cost reduction is paramount, but you must be able to ensure that you can meet your overall business goals, and that includes whether or not your suppliers can provide your organization with the service levels you need.
Additional Articles of Interest
- — For more information on the current state of the sourcing market, see the article "The Analyst Corner: Sourcing" in the June/July 2004 issue of Supply & Demand Chain Executive.