Submitted by yovip16 on April 15, 2009 • Category: Business and Economics • Words: 1967 | Pages: 8 • Views: 237 • Report this Essay
Whirlpool Europe
Introduction
Whirlpool Corporation is a worldwide leader in the home appliance industry. Its main products include microwave ovens, dishwashers, refrigerators, freezers etc. It has made its presence felt strong in the European market, offering 6900 different SKU’s, thus catering to a wide diversity of different European countries. This has resulted in Whirlpool owing a 13% European market share. Customers include consumers who purchase stand-alone appliances, and contractors who purchase built-in appliances.
Problem
Whirlpool Europe is a very large organization that functions its operations in 11 plants, two central and 12 regional distribution centers, and a country sales office in each major European market. Currently, the company operates stand-alone information systems in each of these plants, distribution centers, and sales offices. So, information sharing across these functions or organizations becomes an obstacle and results in inconsistent information being shared.
Whirlpool Europe is considering implementing Project Atlantic, an enterprise resource planning (ERP) system, to allow the smooth flow of information across the entire organization, thus improving operating effectiveness and efficiency in its overall operations. But before making any final decision, the company needs to evaluate the financial aspects of this significant investment plus take into account qualitative issues that can arise during and after its implementation.
Project Analysis
Appliances fall in the category of innovative products that change with the technological advancements in the industry. It is essential to incorporate these technology changes in the products in order to remain competitive. As the company is frequently coming up with improved products, it is difficult to predict the