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Prepared by “TEAM C2X”

but rather their radical departure from what may be called the conventional philosophy of relationship management that assumes the existence of an inherently adversarial interaction between firms. similar aspects regarding supplier management relationships have already been implemented by TQM. internal integration.Introduction In recent years. Supplier policy Supplier policy deployment in SCM follows a different approach than the traditional one. reduce the number of suppliers that collaborate with. long-term working relationships with one or two partners (both suppliers and customers) who depend on one another for much of their business. The companies. supply chain management (SCM) has emerged as a powerful tool in the business process management arsenal. and who make their success interdependent. distributors and retailers operate. Application of the many facets of this methodology has transformed the way in which suppliers. like information sharing establishment of long-term and trusting relationships with suppliers. it is difficult to receive higher levels of quality when a supplier is unaware nitie. Contrary to the conventional and adversarial form of relationships. Also. who develop interactive relationships with partners who share information freely. in order to respond to the new market dynamics.c2x@gmail. However. Part of the open communication between buyers and their supplies is that buyers should provide suppliers with feedback about the results of their evaluation and the mistakes they may have done. who work together to solve common problems during the design of new products. a philosophy that is widely adopted by many companies worldwide. mutual dependence and commitment are also advocated by the TQM philosophy. Supplier management issues. As Monczka et al. and especially those who provide the company with components that have a significant impact on the quality of their final product. The most significant aspect of these relationships is not their emergence. The information sharing is often supported by an electronic data interchange between the partners. manufacturers. a prerequisite for SCM implementation is a key point in the TQM philosophy. who jointly plan for the future. In that way they can more effectively manage the relationships with their strategic suppliers Information sharing/communication The new patterns of buyer. communication effort between supplier and buyer involves many inter-firm contacts and exchange of information takes place frequently and informally and not only according to a pre-specified Prepared by “TEAM C2X” . effective supply chain management in the new competition suggests seeking close. represent a general trend toward closer and more cooperative relationships .In this kind of relationships.supplier interaction found in SCM. mention.

Buyer and supplier responsibilities are delegated with clarity and according to joint agreement. Relationship quality nitie. Suppliers are increasingly viewed as partners. forming of quality requirements and product specifications. planning and communication of the supply program must take place in a timely manner. in order to avoid sudden fluctuations in demand. For the same purpose. Relationship-handling In these kind of close relationships. recognition of supplier’s achievements and performance in the form of rewards. supplier development is necessary. suppliers lack the abilities and competencies required to deal with the high quality standards required by their buyers. price. education and training on quality requirements and knowhow for supplier personnel. is quite often. etc. delivery and payment terms.of a buyer’s current perception of supplier performance. use of JIT system) between buyer and supplier. Supplier support The main purpose of close. Supplier development activities vary widely and they may include raising performance expectations. as it is critical for a buyer to select and maintain only those suppliers capable of providing highest quality products and services.) and joint production planning (e. buyer must be willing to accept and implement improvement suggestions made by the supplier. In order to achieve higher quality. regular contact with suppliers so that he can be kept well informed about supplier’s problems and plans. in new product development and in workgroups with buyer’s representatives in order to identify areas of improvement. placement of engineering and other buyer personnel at the supplier’s premises and direct capital investment by the buying firm in the supplier. suppliers should know the specifications of the products they supply and their exact use for the buyer’s final product. long-term relationships with suppliers is the achievement of high quality products and services that satisfy customer needs. They become more deeply involved in co-operative problem solving. Buyer handles the feedback received from day to day contacts with suppliers including complaints. many buyers are requiring suppliers to pass a formal certification process to provide evidence that they have quality control and improvement systems in place. Buyer pursuits a close. Often. use of quality control.c2x@gmail. Joint action of supplier/buyer Closer long-term relationships with suppliers imply the use of joint quality planning (e. Finally. Moreover. Therefore. quantity. in order to identify improvement Prepared by “TEAM C2X” . the use of a formal contract with supplier regarding quality.g.

each part must be aware of other part’s needs and should align its expectations and goals with its partners’ expectations and goals. Therefore. and its adoption as a template for change is not solely focused within the firm but can also impact positively on supplier relationships. to the interfaces with other members of the supply chain. The second premise is that TQM consists a widely accepted philosophy that contributes to intra-firm integration. The internal supply chain integrates business functions involved in the flow of materials and information from inbound to outbound ends of the business. a prerequisite for inter-organization integration is. it expresses the ultimate goal of SCM implementation and results in higher benefits for the firm. The integrative nature of TQM by stressing that TQM is the mutual co-operation of everyone in an organization. as part of quality management. However. Research shows that the ultimate success or failure of a supply chain alliance is determined by the level of commitment. Management of complex interorganization relations both upstream (suppliers) and downstream (customers) in the total supply network becomes firm’s main aim. Also. as part of quality management. trust and cooperation of its member. one would expect that a firm which implements quality practices will have a higher performance on SCM. as it has already been mentioned. is expected to relate significantly with supplier management issues. Since the firm has already achieved a satisfactory level of internal integration. is aligned with partners’ policy and strategy then goal congruence and mutual trust between the firm and its partners (issues which refer to supplier management) can be achieved.c2x@gmail. A relationship between the various categories of supplier management and the categories of quality management is expected. key business processes identification and management with the use of cross-functional teams are important elements of this step. TQM can help businesses to design operations using seamless boundaries in internal processes and external transactions. Moreover. a strong focus on “leadership”.The relationship with the supplier is considered to be a partnership and is valuable to the firm (buyer) as it can be a source of competitive advantage. in that way. can foster intra firm coordination and. it will be easier to expand its boundaries and form close relationships with its suppliers. When firms achieve internal integration. Intra-firm process integration may constitute the first step towards this direction. The first premise is that since complete and thorough SCM implementation is quite difficult to be achieved. For Prepared by “TEAM C2X” . Thus. Proper handling of nitie. quality management practices in the theoretical model (Figure 1) are categorized in five categories in accordance with the enablers of the EFQM excellence model. Theoretical framework The framework is based upon the following two premises. Given the above two premises. if firm’s “policy and strategy”. it should be implemented gradually. many authors view TQM as a mechanism to coordinate activities within the boundaries of the firm and propose TQM as a holistic approach to managing operations. Coordination of activities within the firm. Thus. the former intra-organization integration. they pursue the extension of integrated management beyond their boundaries.

Finally. better “human resources management”. the communication process between the firm and its suppliers and the clear specification and documentation of relationship handling issues.“partnerships and resources” issues in the framework of quality management.c2x@gmail. is highly expected to relate to the many aspects of supplier management. Figure 1 Theoretical model nitie. Also. for example. a thorough “process management” system provides an intra-firm infrastructure that can be useful to supplier management regarding. can help organizations to achieve an internal infrastructure for information sharing that can be extended to its suppliers. such as the identification of key partners and strategic partnership opportunities that are in line with firm policy and strategy and the assurance of cultural compatibility with partner organizations. for example in terms of employee training and intra-firm sharing of best practice and Prepared by “TEAM C2X” .

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