What are the specific requirements relating
to Integrated Supplier Management?
Integrated Supplier Management (ISM)
provides a common process for doing business with all Whirlpool suppliers through
electronic communication.
This will impact:
- Releasing for raw material and
components
- Tracking of in-bound raw material
through ASN's
- Receipt of material via Bar Code
Scanning and communication of discrepancies to suppliers
- Inventory Consignment Agreements: JIT,
Consignment or pay on consumption (POC)
- Payment to suppliers via Electronic
Receipt Settlement (ERS) and Electronic Funds Transfer (EFT)
The diagram below describes the Basic ISM process.
The primary goals of ISM are to have common processes and systems with all suppliers and
plants worldwide. This will enable Whirlpool to increase product availability and reduce
working capital. Predicted benefits of the ISM process include:
- Simplify and Improves communication
with suppliers
- Simplify Shipping and Receiving
processes
- Reduce manual releasing
- Reduce raw and in-process inventory
- Reduce obsolescent material
- Support Whirlpool's Accounts Payable
& suppliers Accounts Receivable with the Electronic Receipts Settlement (ERS) process
- Provides better visibility to the
total supply chain inventories