Whirlpool implemented a new ERP system from SAP to upgrade its IT systems and operations. However, Whirlpool rushed the implementation and was not fully prepared for the changes. This led to issues like six to eight week delays in order processing that negatively impacted customers and sales. Employees and IT staff were also not properly trained on the new systems and changes to their jobs. While Whirlpool shares some blame, SAP should also be held accountable as it did not ensure Whirlpool was fully prepared for the challenges of a rapid implementation.

1. Whirlpool Corporation Giving ERP a Spin 1
Whirlpool Corporation Giving ERP a Spin
By
Christina Cecil
An assignment submitted in partial fulfillment of the requirement for MGT 608
School of Business Management
National University
Renee A. Weeks
8/13/14

2. Whirlpool Corporation Giving ERP a Spin 2
Background
This article focuses on how Whirlpool decided about the changes in SAP in the ERP
implementation of upgrading their IT system. Whirlpools started out with wanting to upgrade
their network in order to better compete in the pricing and ordering. The goal being that by
upgrading the routing software technical would be able to serve one extra customer per day. This
would be a result of the upgraded system that would cut down on daily service route plotting.
“Using RIMMS, Whirlpool dispatchers can lay out each technician’s route within an hour”
(LaVan). Problems arise with technicians being asked to service new territories. The other part of
the new system would also make it to where Whirlpool could more quickly update pricing and
processing orders. Unfortunately this causes issues with the shipping and the SAP program was
not as successful as Whirlpool was made to believe. We are able to see this in the article as the
SAP program is evaluated and taken into consideration the issues Whirlpool faced because of the
quick launch of the new system. Not only did sales decrease but employees were faced with new
challenges that they were not expecting to have to deal with as a result of the newer upgraded
system.
How was the organization prepared for the change?
Whirlpool had started with “consolidating seven of its 22 field locations” (LaVan) about
the future changes with plans to inform the other field locations of the change by the end of the
year. Plans to change the routing system was also set into motion as well as retraining for the call
center and changes to the access programs regarding pricing. The company was not totally ready
to do the launch of SAP AG’s R/3 when it did it last year and thus faced several issues and
backlash from its consumers.

3. Whirlpool Corporation Giving ERP a Spin 3
Was the problem with employees, whose jobs had changed, dealt with properly?
Not really since the employees were not really aware of the issues that were foreseen by
the company overall. This also makes the employee’s job harder with having to deal with six to
eight week delays on orders being processed due to the push for the launch of the new software.
Both retraining and an overall view of the new plans involving the company should have been
given to the employees before the implementation was launched. Also making sure that the plan
was fully in place and the bugs worked out of it would have benefited the company.
How were the customers and vendors communicated with about the changed procedures
for interfacing in various transactions with Whirlpool?
As far as vendors when with an increase in sales and a “botched shipping system…stores
selling Whirlpool appliances started to feel the pinch” (LaVan). According to Bill Brennan a
store manager where Whirlpool appliances are sold states, “some people are ordering four or five
appliances, and we get one this week, none for them the next week, Then one more the week
after. It’s been a dilemma. “Brennan said he’s been steering customers who don’t want the long
wait to other brands” (LaVan).
How were IT employees prepared for interfacing with external consultants?
With the basic knowledge of the pricing system being more automated and easier to
change the IT employees where aware of the new interfacing with external consultations but not
really prepared for the huge increase in the sales. “Whirlpool is the latest in recent spate of ERP
implementations in which user companies have grossly underestimated the complexity”
(LaVan). This has causes issues for the IT employees who were really not fully aware of the

4. Whirlpool Corporation Giving ERP a Spin 4
implication of the new system being set into motion. Gargeya and Brady (2005) identified that
consultant support is one of the success and failure factors in ERP systems implementation.
Do you think SAP should be held accountable for any of the problems faced by Whirlpool?
Why?
The problem SAP faces is that there is no really start to end for their projects. The other
issue it faces is the there is no shorter easier projects involved in using SAP. Selland states that,
SAP had recorded more successes than failures and that it’s common to find “a hundred little
problems and ten that are major” when going live (LaVan). With its big ideas of going live in
only 90 days this can cause issues on the vision which can seem unclear. SAP should take some
responsibility for this issue since it did not make sure that Whirlpool was aware of the potential
issues that could face with the quicker launch of the new system being in place.

5. Whirlpool Corporation Giving ERP a Spin 5
References
Gargeya, V.B., and Brady, C. (2005). “success and failure factors of adopting SAP in
ERP system implementation.” Bus. Process Manage. J., 11(5). 501-516. DOI:
10.1061/(ASCE)0733-9364(2009) 135:3(207).
Helen LaVan, PhD, Dept. of Management, DePaul University, Chicago, IL.