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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

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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#

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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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