Quality in supply chain: an exploratory case study

This paper examines an eight tier (including a tier for end users) supply chain whose end product is an oven range. Categories of quality attributes were determined and seven entities (representing seven different levels in this supply chain) were interviewed on topics that included definitions of quality for each organization in the chain along with the inter-organizational effects of quality within the supply chain. Ross (1998) stated that end customer satisfaction could only occur when the entire supply channel is focused on the same quality and value added activities. Our study found a successful supply chain whose entities were not focused on the same quality goals. Our findings indicated that quality goals were not standardized in this supply chain. Quality goals varied for each organization and most did not focus on end customer satisfaction. Suppliers were not effectively managed in this supply chain, most likely due to their lack of definition and communication of standardized quality goals. Standardized quality goals did not contribute to the success of this supply chain. This supply chain is very successful without standardized quality goals as well as no common focus on the end user. To conclude that this chain is dysfunctional and/or incapable would be incorrect. Market share is increasing for Whirlpool, as are supplier sales. Quality of the ranges is increasing while cost of the ranges continues to decrease. Perhaps the chain has the minimum level of inter-organizational exchange of quality attributes that it needs to be successful for a mature, stable product line. It is evident that this type of quality information and management would not have the same level of success if there were a market shake up due to a new, innovative competitor with a dramatically different range