Reference no: EM13253202

Developing global supply chain quality management systems -

1. Introduction

Achieving supply chain quality (SCQ) is not easy. A supply chain must undergo a transformation from its supply chain management approach to supply chain quality management. A typical supply chain network is fairly complicated. But, however complicated, as noted by Chow et al. (2008), Lambert (2004) and Madu and Kuei (2004), a supply chain can be implemented through nine elements:

(1) sourcing,

(2) supply chain relationship,

(3) product development,

(4) order fulfilment,

(5) manufacturing,

(6) distribution,

(7) customer engagement,

(8) reverse logistics, and

(9) Web-enabled platforms.

Madu and Kuei (2004) further note that supply chains exist for the purpose of connection, transaction, and delivery. They define supply chain management (SCM) with two simple equations, where each equation represents the letters that make up SCM. The definition is as follows:

Supply chain: A production-distribution network.

Management: Enabling conditions for integrity, integration, process optimisation, operational efficiency, continuous improvement, and sustainable competitive capabilities.

In the digital age, modern enterprises with supply networks need to develop strategic, technical, procedural, and organisational capabilities and capacities to respond to four emerging requirements: customer focus, technology adoption, relationships management, and leadership styles (Ogulin 2003). Figure 1 is a graphic depiction of a supply network and its managerial components.

Supply chain quality management (SCQM) is different from supply chain management (SCM). It is to create a sense of supply chain quality community. It is an extension of SCM that is designed to prepare firms to build supply chain competencies through tailored quality management practices (Madu and Kuei 2004, Kuei et al. 2008). In the early 2000s, Robinson and Malhotra (2005, p. 319) define SCQM as ‘the formal co-ordination and integration of business processes involving all partner organisations in the supply chain channel'. The aim of such a system is to ‘create value and achieve satisfaction of intermediate and final customers in the market place' (Robinson and Malhotra 2005, p. 319). On that note, Kuei et al. (2008) showed that modern enterprises with supply networks need to design quality into supply chains, optimise the flow of materials, stabilise supply-chain-wide quality systems, and maximise the seamless sharing of data throughout enterprise resource planning (ERP) systems. Flynn and Flynn (2005, p. 3432) use survey results from 164 firms in the US and report that ‘organisations with stronger quality management practices achieved better supply chain performance'.

Attachment:- quality management systems.pdf