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Whirlpool Corporation:Reverse Logistics ACase Analysis
By MindfreaksDevang Bhatia
Shivam Agra a 1
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!ntrod"ction
Whirlpool is the large manufacturingcompany that takes up to 30% of
appliance market share in canadaNew legislation that requires allappliances manufactures to takeresponsibility of end-of-life ( !"#collection and the recycling of productsNew e$tended producer responsibility( requirements gi'e three options
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#hree $ptions
)oin an industry- funded organiation
*et up their own +,! to meet theguidelines through a closed loop
,ight against the & legislation
3
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%oining an !&$
No additional stress of dealing with thenew regulations
ay a fee and +,! will take care ofadditional chargesontinue to run company as is$penses are a'eraged across all
stewards in the organi.ation which isdisad'antageous to whirlpool as theirproducts are more greener than others/
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Close Loop System
Bene'tsWhirlpool will ha'e full control on all costsand customers
ood for en'ironment- recycle products afterproduct life cycle2anufacturers focus on making productsmore sustainable less to$ic easier torecycle4esigning products to last longer lowersmanufacture5s end of life costs (2a6or,inancial +ncenti'e#
7
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Risks !nvolved !n Closed LoopSystem
4isruption of their logistics networkapacity problems at regional and
factory distribution centers8ery e$pensi'e and hurt business ifnot done properly+ncrease products costs forcustomers manufacturers could addrecycling costs into product price tag
9igh risk and 9igh reward:
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&ight Legislation
;7-;;% of all discarded household appliances arealready being recycled into landracking 'ery di?cult
@
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Reven"e ( e)pense
+f we select only products that iswashers anddryers we get atotal re'enue ofA1 / 3 million by
reselling 'arioussubstances inscrap/(steel aluminiumpl
atic copper#
>he e$pensesaccording toe$hibit for these
products are lessthan the totalre'enue/ >hat is ifwe calculate theper tonne cost(AB:7# the totalcost is aroundAB/:7 million/
B
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#hank *o"
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