Strategic Sourcing at Whirlpool China: Finding the Ideal Supplier Case Solution

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Case Solution for Strategic Sourcing at Whirlpool China: Finding the Ideal Supplier by Martin Lockstrom, Thomas E. Callarman, Shengrong (Linda) Zhang

Abstract:
It was April 10, 2011, when the head of Whirlpool’s Asia International Procurement Office in Shanghai was informed by his colleagues that the company was about to launch a new energy-efficient refrigerator model in just six months. For the new refrigerator model, the basic difference was in the motor; the current AC motor would need to be replaced with a DC motor, which was more efficient but also more expensive. He would have to find a suitable supplier of DC motors in a very short time. Delayed sourcing of components would cause delays in the production of a new refrigerator and result in a later launch of new products. Within the home-appliance industry, the fierce level of competition meant that any delays in launching new products would result in a loss of sales. How should Whirlpool go about the process of finding a suitable supplier for the required DC motor parts? Should the company explore the possibility of developing its current supplier, or should it quickly engage an existing supplier of DC motors?

Keywords: 
Suitable Supplier, IPO, Global Sourcing, Supplier Quality, Strategic Sourcing, Supplier Selection Criteria, China, Strategic Sourcing at Whirlpool China Finding the Ideal Supplier Case Solution

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