The supply chain is unique for any organization considering that the expectations of customers differ from one industry to the next. The most significant component of supply chain management is satisfying the customer and primarily, customer focus. If the customer is provided with a high quality product and is satisfied with the output of the company’s supply chain, then the supply chain process has been successful and can continue to improve, develop and make its processes even more successful and highly effective. However, low quality within supply chain systems can become a prevalent problem amongst the supply chain industry. There are a number of reasons and causes behind poor quality supply chain systems (Soltani et al, 2011).
The first major cause behind poor supply chain systems is lack of quality management and most significantly, synchronization and collaboration of cross quality management and supply chain management within a particular supply chain. Poor quality management can be derived from a lack of teamwork amongst employees ranging from warehouse directors and managers to their respective employees such as technicians, vehicle operators, key personnel that assist in managing supplies and quality managers overall (Jusko, 2009). There needs to be a highly efficient and flexible chain of command in place that links the priorities of the company with respect to its managers and technicians. The chain of command also requires effective communication systems. The majority of quality management and supply chain management flaws and issues stem from ineffective communication techniques and this can result in poor supply quality and insufficient supplies to meet customer demands and the requirements of more wealthy clients and also partners (Jusko, 2009).
The second main issue or cause in relation to ineffective supply chain procedures, as recommended by Soltani et al, is the inability of supply chain areas and companies to sustain positive working relationships with partners, customers and clients. Positive relationships with partners is essential as partners can inspire the establishment of future networks between the company and key suppliers, customers and clients. Suppliers can liaise with supply chain management through their respective partners in order to complete contracts and also extend them as well (Soltani et al, 2011). Furthermore, partners can recommend particular customers or add further value to the supply chain management process. Teamwork is also a key part of this as partners rely on certain levels of quality provided by supply chain divisions and a high level of flexibility. The development of more innovative supply chain strategies can also attract interest from partners and customers and this can further improve and develop the supply chain process. In essence and based on the literature provided, organizational behavior and innovation are key to inspiring employees, key suppliers, partners and other interested partners. A supply chain department can provide a high quality product however the product can not become successful or develop significant revenue for the company unless networking occurs and partners and customers are involved in the process and are provided with a preview of the product (Soltani et al, 2011).
There are three main recommendations provided by the case study including the following: 1) The establishment of comprehensive monitoring capabilities 2) The detection of opportunistic behavior in the supply chain process, and 3) Protect product quality. The first recommendation can be implemented within the company by firstly establishing a comprehensive standard operating procedure manual and due process throughout each department of the company. By providing key guidance on due compliance and development of a high level of product quality, the company’s management can monitor the respective capabilities of each division and have some positive influence over their respective behaviors and decisions. This recommendation can also be fulfilled by establishing key communication pathways that ensure that management have an idea of how capabilities are being monitored and that they are being driven up through the supply chain management and leadership process (Jusko, 2009).
The second recommendation can be implemented via more effective communication between the company and its respective partners and supplies. With the establishment of more effective working relationships, the company and its supply chain process can have greater situational awareness over the supply chain process and how to monitor opportunistic behavior and use it to advantage the company rather than other interested partners (Soltani et al, 2011).
The third recommendation can be implemented by constantly updating product quality guidelines and ensuring that the overall quality management process within the supply chain division is innovative and encourages constant improvements and developments (Jusko, 2009). By simply allowing the supply chain processes to remain restrictive and unmoving, there is limited scope for further improvements and therefore updates to product quality as stipulated by the literature (Soltani et al, 2011). This recommendation can also be instilled by reviewing supply chain processes and policies, which ensure that they continue to provide quality rather than a stagnating flow of satisfactory products (Jusko, 2009). Ultimately, the product quality process within the supply chain of any company can be improved via a renewed focus on the customer and how to maintain continued customer loyalty.
Changes to the supplier contract can include shortening contracts to allow for further quality reviews and analysis of the effectiveness of suppliers to the overall supply chain of the business. The contract can also become more comprehensive to allow for specifications to be included that inspire further product quality and overall quality management within the overall supply chain of the company (Soltani et al, 2011).
In summarizing these recommendations, implications and proposed changes to the supplier contract, it must be reiterated that the supply chain relies heavily on the integration of supply management and quality management factors that ultimately inspire growth and change within the company.
- Jusko, J. (2009). Building A Better Supply Chain. Industry Week, Retrieved from http://www.industryweek.com/companies-amp-executives/building-better-supply-chain Accessed on 4th October 2015.
- Soltani, E et al. (2011). Quality Performance in a global supply chain: finding out the weak links. International Journal of Production Research, 49(1), 269-293.
