MGT5IPM Project Management: Supply Chain Management| Dissertation
Dissertation:
In this assignment write Dissertation on The impact of quality in the supply chain management.
Answer:
Introduction
In the contemporary global commercial and business scenarios, with the advent and occurrences of phenomena of international significance like that of Globalisation, trade and commerce liberalisation as well as technological and infrastructural progress and developments across the different countries of the world, the levels of inclusiveness, interconnectedness as well as complexities have increased substantially (Cavusgil et al. 2014). With the continuous improvement of the technological framework and with the aspects of transport, communication and connectivity getting facilitated across the world, the domains of different businesses have also been increasing, both in terms of venturing in new geographical domains as well as in terms of exploring new markets and finding opportunities of attracting greater number of customers (Johnson and Turner 2010).
All these aspects, along with an increasing share of businesses in almost all types of industries going global, have led to creation of a more competitive environment for the businesses across the world. Moreover, the frequent changes and elevations in the demand and expectations of the customers and the shorter life cycle of the products in the recent period, have also contributed in the magnitude of challenges for businesses operating in the current global framework (Eckel and Neary 2010). Thus, the increase in the level of competition and challenges along with the expansion of the operations of the businesses across the globe, has led to the increasing need for efficient production and operational frameworks in the same, which in turn indicates towards the rising significance of proper supply chain management in the operational frameworks of the business (Martínez-Jurado and Moyano-Fuentes 2014). One of the crucial parts of the supply chain management, however, is that of assurance of quality in the supply chain framework and implementation of measures to improve the quality performance of the supply chain aspects of the companies, which over the recent few years has been gaining increasing importance and popularity due to the direct linkage of the same with the profitability, competitiveness and sustainability of the businesses.
Keeping into consideration, the importance of supply chain management in the operational framework of the commercial organizations, the concerned research aims to study the roles which assurance of quality in the supply chain management framework play, in the aspects of overall performance, customer satisfaction, revenue generation, competitiveness as well as sustainability of the businesses in the manufacturing industry of the United Arab Emirates, in the contemporary period.
Research Background
In a generalised framework, the term “Supply Chain Management” (in short SCM) refers to the efficient monitoring and management of the inflow and outflow of different products and services, including those of raw materials, inventories, intermediate commodities as well as finished products, from the origin point to the point of final consumption. These activities, cumulatively, are of immense importance in ensuring the productivity, profitability, efficiencies as well as competitiveness and long-term sustainability of businesses in any industry at any part of the world (Heckmann, Comes and Nickel 2015). Keeping this into consideration, in the recent periods, most of the countries in the global framework, can be seen to be investing and emphasizing in development of efficient SCM frameworks in the industrial domains, so as to facilitate commercial expansion and an overall industrial and economic growth (Colicchia and Strozzi 2012).
In this context, the UAE, being one of the most dominantly prospering economies not only in the Middle East but also across the globe, in the contemporary period, with the economy of the country experiencing a huge expansion of industrial and especially manufacturing activities, with the businesses in these domains consistently expanding and gaining prominence in both domestic and international markets. Not lastly, the immense expansion of industrial and manufacturing sectors of the UAE have also affected local logistics and SCM processes within the industrial sector of the country. The UAE logistics can be seen to be growing at a rate of 5.7% in the recent years, thereby leading to the emergence of the country as one of the global leaders in the aspects of logistics and supply chain management (Nyarko 2010).
However, in the contemporary period, only concentrating on time and cost efficiencies in the aspects of supply chain management, is not sufficient and with the increase in the expansion of the businesses, the need for an overall quality management of the whole supply chain framework can also be seen to be felt in the global scenario (Arzu Akyuz and Erman Erkan 2010). These aspects include quality conformance, on-time delivery to the customers, robust relationships with the suppliers, assurance of quality of raw materials, final products and production processes as a whole and much of the success of the companies seem to be dependent on the performance of the supply chain management frameworks in these aspects (GUERRORO 2010). This has become even more relevant in the contemporary period, attributing to the increased dynamics of changes in demand and preference patterns of the customers, in a more integrated global commercial, business and consumption scenario.
Significance of the Research
The concerned research, in such a scenario, tries to explore the impacts which quality management have on the overall supply chain management aspects of the manufacturing sectors of the UAE, thereby trying to analyse the implications, advantages and limitations of implementations of the same in the supply chain management framework. The study, by analysing the above-mentioned aspects, also tries to shed light on the possible ways in which quality management can be improved in the supply chain management framework of the manufacturing industry in the concerned country, which in turn makes the concerned research considerably significant and crucial, especially in the aspects of overall productivity, efficiency, profitability and sustainability of the companies venturing in the robustly developing and highly potent manufacturing sector of the United Arab Emirates, in the contemporary period.
In spite of the substantial development of the supply chain management framework in the concerned country, there still remains lack of knowledge as well as resources in the aspects of quality management of the supply chain related activities, which include areas of immense importance like those of quality conformance, timely delivery of final products to customers, bad quality costs, customer relations, supplier relations, customer service and feedback addressing mechanisms and many other domains, especially in the concerned country. This makes it immensely important to analyse the importance of quality in supply chain management and its impacts on the same as well as on the businesses as a whole, especially in the manufacturing sectors of the concerned country. The research focusses on the manufacturing sector of the country, because the sector used to contribute near 55% of the total GDP of the country (2007) but has been slowly losing its share in the GDP of the country and in the current period contributes 43.6%, losing out to the growing service sector of the country. However, the manufacturing industries still have immense significance in the aspects of exports, revenue generation and employment creation and therefore, it becomes crucial to analyse the bottlenecks which exist in the manufacturing industry to increase its prosperity and dominance in the coming years.
Research Objectives
Taking into consideration, the aims of the research, the primary objectives of the study can be seen to be as follows:
- To analyse the importance of supply chain management in contemporary global business scenario as well as in the operational frameworks of manufacturing businesses in the UAE
- To examine the practices adopted globally in the aspects of supply chain management and their efficiencies, credentials and limitations
- To examine the practices in this domain, which are implemented in the manufacturing sector of the UAE
- To analyse and interpret the relationship between quality management and supply chain management
- To explore the importance of quality in supply chain management frameworks, especially in manufacturing sector of the UAE
- To recommend strategies and ways for improvement in the aspects of quality management in the supply chain frameworks and processes in the UAE
Research Questions
Primary Research Question
With the objectives of the concerned research in consideration, the primary question which the study intends to address is as follows:
What are the impacts of quality management in the supply chain management framework, especially in the manufacturing sector of the UAE?
Secondary Research QuestionsBased on the primary question, the related sub-questions which the concerned study explores are as follows:
- What are the best practices in supply chain management across the globe?
- What are the core practices in this aspect, which are implemented in the UAE?
- What is the relation between quality management and supply chain management?
- What are the impacts of quality management in supply chain performance in the UAE?
- What are the implications of supply chain quality management on the businesses in the manufacturing sector of the UAE?
- What are limitations present in the country in these aspects?
- What are the ways in which the supply chain quality management can be improved, especially in the manufacturing sector of the UAE?
Literature Review
As can be seen from the discussion in the above chapter of the thesis, in the contemporary period, with the substantial development of business operational frameworks across the globe and with the increase in the level of competition in the same, the aspects of supply chain and supply chain management have been gaining immense significance and popularity in the international scenario (Marra, Ho and Edwards 2012). In the recent years, with the frequent and continuous changes in the demand and preference patterns of the customers across the world and with shorter life-cycles of products and services in general, the importance of quality management in supply chain performance is also gaining considerable importance and a lot has been researched and studied in these aspects in the global scenario (Grubic and Fan 2010).
Keeping this into consideration, this section of the research, tries to conduct an extensive review of the literary evidence and empirically supported scholarly works present in the above-mentioned aspects in the contemporary global framewor
k, with the intention of studying the different perceptions and opinions which are present in the domains of SCM. The review includes the literary perceptions specifically regarding the importance of SCM, best practices in this domain (both globally as well as in the UAE), the importance of supply chain quality management, impacts of quality management in supply chain performance and the significance of the same in the overall performances of the business, in the contemporary global business scenario.
Supply Chain Management: Definition, Meaning and Implications
To understand the notion of supply chain management, it is important to understand the concept of supply chain, especially in the production and operational frameworks of businesses, across the globe. Flynn, Huo and Zhao (2010), in this context, defines the term “Supply Chain”, as the system consisting of organizations, activities, people, non-human resources as well as relevant information and knowledge, which cumulatively operate in moving a commodity or a service from its origin (with the suppliers) to its end destination (to the final customers of the same). Augmenting this definition, Christopher (2016), highlights that the supply chain activities, in operations and production contexts of different businesses involve the processes related to transformation of different raw materials and inputs into a final product or service, with the help of the suppliers of the same and then the process of delivering the same to the end customers.
Supply Chain ManagementKeeping the notion of supply chain and supply chain activities, as discussed above, in consideration, Carter and Liane Easton (2011), defines the notion of “Supply Chain Management”, as the broad range of different activities and processes which are required for the purpose of planning, controlling as well as executing the flow of particular commodity or service, from the point of origin, consisting of acquisition of raw materials for the production of the same, to the production process, to the activities of distribution of the product to the final clients, in the most cost-efficient as well as streamlined manner. In other words, the notion of supply chain management, in the commercial context, refers cumulatively to all the processes which are required to transform raw materials into those of final commodities and services, which help in streamlining the production and other supply related operations, thereby maximizing the customer satisfaction, value as well as the competitive advantages of the businesses in the market in which they venture (Seuring 2013).
In this context, a diagrammatical representation of the SCM framework, which can be seen to be implemented in the operational frameworks of different businesses and production in almost all types of industries across the globe
Difference between Logistics Management and Supply Chain Management
In the contemporary global scenario, the notions of supply chain management and logistics management are used for referring to similar aspects and activities, in business and production scenarios. However, there lies several crucial differences between these two concepts and the activities related to the same, as can be seen to be highlighted in the works of Islam et al. (2013). In their paper the authors highlight the basic differences between the two as follows:
Meaning- While the term “Logistics Management” refer to the integration of the movement of products and goods in and out of a company and maintenance of the process, the term “Supply Chain Management”, is a much broader term involving the coordination of all the supply chain activities, thereby involving more than one organization.
Objectives- According to Myerson (2012), while the primary objective of logistics management is that of maximisation of the customer satisfaction, supply chain management activities in an organization, aim to maximise the competitive advantage of the organization as a whole, in every aspect.
Thus, the above discussion makes it evident that that Supply Chain Management is a much broader concept than that of Logistics Management and the latter is a component or a fraction of the former, which in turn indicates towards the broader scope and significance of Supply Chain Management in the contemporary global business frameworks (Fernie and Sparks 2014).
Evolution of the concept and framework for Supply Chain Management
The notion and framework of Supply Chain Management, as can be seen to be practised and observed in the recent periods, have not developed abruptly and the concept has its roots in the early periods of the twentieth centuries, with a series of dynamics, changes and additions to the framework over time and across the globe. In this context, Sarkis, Zhu and Lai (2011), try to classify the evolution of the framework of supply chain management, in the global business scenario, into the following eras:
Creation Era- As the authors highlight, the term “Supply Chain Management”, was first conventionally coined by Keith Oliver (1982) and the parent concept of supply chain was prevalent and was observed with great importance, with the initiation of the creation and operation of assembly lines in production and manufacturing processes of companies (Hugos 2018). This era marked the increasing implementation of the notion in business practices, especially in the domains of re-engineering of operations, cost reduction and downsizing activities and large-scale changes to bring efficiency in production process, with the inspiration coming primarily from the Japanese production and management activities.
Integration Era- As per the assertions of Colicchia and Strozzi (2012), the creation era of supply chain management, which marked the initiation of proper application of the concept conventionally in the business practices, was followed by a period of development of the Electronic Data Interchange (EDI) frameworks, which in turn gave ways to development of the Enterprise Resource Planning Systems (ERP Systems). This era, as referred to be the Integration Era, by the authors, expanded in the twenty first century, where the supply chain management framework saw integration of the internet-based systems for collaboration, thereby leading to increase in the aspects of cost reduction and value additions in the supply chain management framework (Wisner, Tan and Leong 2014).
Globalisation Era- The concepts as well as implementation and applications of supply chain management, gained immense popularity and relevance, during the period of globalisation and international trade liberalisations. As highlighted by Lu (2011), in his paper, the globalisation era, marked the initiation of immense expansion of operational domains of increasing number of businesses beyond the national boundaries, thereby operating in an international market, with a more complex systems and networks of global suppliers, producers and consumers. This in turn intensified the needs for more efficiency in raw material acquirement and product delivery processes, thereby leading to the development of the supply chain management frameworks across the globes, backed by technological progresses and infrastructural developments across different countries of the world (Gosling, Purvis and Naim 2010).
Specialisation Era- Supply chain management, in the contemporary period, as defined by Trkman et al. (2010), is a complex and dynamic structure with creation of different channels and activities within the broad notion, the initiation of which can be marked as the beginning of the Specialisation Era in this aspect. In this era, supply chain management gained the notion of a service itself and separate and specialised channels like that of manufacturing and distribution networks began be created as specialisation models with there individual responsibilities (towards producers and to the end users) and activities within the broad domain of supply chain management (Bala 2014).
According to the assertions of Trkman et al. (2010), the contemporary period marks the second half of what is being referred to as the specialisation era for supply chain management. The activities under the broad domain of this framework, in the recent times, are becoming more specialised and the notion of supply chain management in the contemporary global business scenario, consists of many sub-functions, targeted to meet specific needs and play specific roles in the aspects of facilitation of the entire process of production of a commodity, from the beginning (procurement of raw materials) to the end (delivering final goods to the end users).
Gereffi and Lee (2012), in this context, highlights the specific functions and specialisations under the greater domain of supply chain management into the following types:
- Performance Management
- Transportation Management
- Inventory Management
- Planning and Development Management
Thus, as can be seen from the above discussion and from the evidences present in different literary works across the world, the concept of supply chain management, though being present in its nascent form, as early as in the first half of the twentieth century, the same has however, developed considerably over time. With ages newer domains, operations and specializations have been included in the supply chain management framework and in the current period, supply chain management appears as one of the key components in the operational frameworks of businesses across all parts of the globes and in all types of industries (Baldwin 2013). With the expansion and internationalisations of the commercial scenario, the supply chain management framework has also been fragmented into various specialisations, each of which have their significances in playing crucial roles in different aspects of the operations of the businesses across the globe.
Components of Supply Chain Management: Contemporary Scenario
In the contemporary period, a typical supply chain in any manufacturing and operational framework of business can be, in general.
As can be seen from the above figure, the activities in the supply chain management, can mainly be divided into two broad categories:
Upstream Components- The upstream components in the supply chain management of a business organization includes the relationships of the same with that of the suppliers of raw materials, purchasing activities of the companies as well as the activities related to mobilisation and smooth operations of the production lines of the company. As highlighted by Ramanathan and Gunasekaran (2014), the primary activities in this domain consists of the following:
- Purchasing of raw materials
- Transport of the same to the manufacturing units
- Purchasing different finished products and equipment required for the production process
Downstream Components- This component of the Supply Chain Management framework, on the other hand, deals with the aspects of selling and delivering the final products or services offered by the concerned company to the end users or customers. This component also deals with the post-sale activities of the companies. Ageron, Gunasekaran and Spalanzani (2012), in this context, highlights the primary activities in this component of supply chain management, in general, to be as follows:
- Selling the final products and services
- Delivering the same to the end users
- Negotiation activities
- After-sale activities like that of customer support and addressing of complaints and feedbacks (Roh, Hong and Min 2014)
- Recycling of the used products or services (If possible)
However, the authors also suggest that these are the general activities in the upstream and downstream components of the supply chain management frameworks in the global business scenario and the activities with the two components can vary with time and across different businesses, depending upon the nature of the products and services which they tend to offer, the markets in which they venture, the supplier networks and the customer segments which they aim to target.
Supply Chain Management: Functions and Significances
Functions of the Supply Chain Management Framework
There remains considerable debates and various perceptions regarding functions and roles which supply chain operations play in the commercial framework. The confusions regarding the same can be seen to be even more aggravated in the recent periods, owing to the complexities and expansion of the framework. Carter, Rogers and Choi (2015), in this context, rightly and comprehensively highlight the primary functions played by supply chain management in the contemporary business scenarios to be as follows:
- Flow alignment-According to the authors, the supply chain management frameworks of the business companies, across the globe, primarily play the role of aligning the different flows of money, information and materials among the different participants in the production and consumption processes, inclusive of the customers and suppliers, thereby maintaining the smoothness of the entire operational frameworks of the businesses.
- Coordination-According to the assertions of Ramanathan (2014), the supply chain management framework in any company plays the immensely crucial role of coordinating the different processes within the operational framework, including that of planning, sourcing, producing, delivering as well as returning (as and when required) processes, in the production and selling process of the companies, thereby ensuring streamlining of the same and increasing the profitability of the concerned companies.
- Integration of the different activities- Verma and Seth (2011) adds to the perceptions in this aspect, by highlighting one of the major functions of the supply chain management framework to be that of integrating and connecting the various discrete but related activities in the operational framework of the companies, like that of logistics, purchase, production, delivery and others in order to achieve the organizational goals.
- Resource Management-The management of supply chain in a business, also play the significant role of optimisation of the usage of the different resources present with the concerned company (like those of human resources, equipment, technologies and productive and other operative processes) such that the needs of the end users are most efficiently and cost-effectively met (Guan and Rehme 2012).
However, apart from the above mentioned functions, the supply chain management of different business organizations play other crucial roles in cost management, production prediction, future trend analysis and also in the aspects of management of any kind of disruptions arising in the entire process of production of the goods and services which the companies offer to their potential customers, thereby making the same immensely important in the overall operational frameworks in the global commercial scenarios (Beske 2012).
Importance of Supply Chain Management in businesses organizationsThe above discussions regarding the concepts of supply chain management and the roles as well as functions of the same in the different business organizations across the globe, indicate towards the considerable level of significance of the same in the different aspects of the business operations. The primary aspects of importance of the supply chain management framework in businesses are discussed as follows, with the help of the literary and scholarly evidences present in these domains:
- Customer Satisfaction-As highlighted by Stock, Boyer and Harmon (2010), one of the most crucial factors determining the competitiveness and sustainability as well as prospects of a business is the level of satisfaction of the customers availing the products or services offered by the concerned businesses. In this aspect, the supply chain management in the company and its level of efficiency plays crucial roles. In this context, De Vries and Huijsman (2011), highlight the primary aspects and components of supply chain management in a company, having considerable impacts on the level of satisfaction of the customers to be as follows:
- Time required for marketing new products and services
- Delivery time and processes
- Response time to the requests for customer services
- Efficiency in responding to customers’ requests and feedbacks
- Inventory management
- Product or service qualities of the companies
According to the authors, presence of an efficient supply chain management framework is required in the companies for addressing these aspects as the satisfaction of the consumers significantly depend on the same.
- Profitability-Augmenting the assertions of the previous authors, Walker and Jones (2012), highlight that the level of customer satisfaction with the products or services offered by a particular company, directly and positively influences the aspects of profitability, prosperity and competitiveness of the concerned company, thereby indicating towards the linkage of the supply chain management framework in the businesses and the level of efficiency in the same, with that of the overall profitability and performances of the concerned companies in the market where they venture.
- Cost Management-Zailani et al.(2012), in this aspect, highlight the importance of supply chain management in a company in the context of minimization of production and other operational costs. As the authors argue, often in the operational processes, the company perform activities which are of no actual value and which add to the unnecessary cost burdens of the companies, thereby decreasing their overall efficiencies and profitability. The presence of an efficient supply chain management in the companies, however, help in reducing these costs. Tate, Ellram and Kirchoff (2010), points out the different expenditures of the companies which are monitored by the supply chain management framework to be as follows:
- Transport costs
- Inventory management costs
- Waste management costs
- Forecast accuracy
- Procurement costs
- Delivery costs
As per the authors, the presence of a robust and efficient supply chain management in the companies help in reducing and minimising such costs in the operational frameworks of the companies, which in turn helps in increasing the profitability and efficiency of the companies, thereby giving them a competitive edge in the markets where they venture.
- Relationships with the suppliers-Another crucial importance of the presence of an appropriate supply chain management in the companies, as discussed by Tate, Ellram and Kirchoff (2010), is in the aspects of management of the relationships with the suppliers of the different raw materials and equipment required by the concerned companies in their production and delivery processes. According to the authors, the presence of a robust and communicative as well as flexible supply chain management in the companies help the same in building long-term and bilaterally beneficial relationships with the suppliers of the raw materials to the same (Tayur, Ganeshan and Magazine 2012). This in turn, helps the companies to reduce the supply bottlenecks, inventory managements, shortages and supply related uncertainties, which in turn increases the overall efficiencies in the production and operational processes of the companies.
- Corporate Social Responsibility-Smith, Palazzo and Bhattacharya (2010), taking into consideration, the importance of ethical aspects in doing business in the contemporary period and the increase in the significance of Corporate Social Responsibilities in global commercial scenarios, highlight the important role which the framework of supply chain management plays in the business operations across the globe (Park-Poaps and Rees 2010). As per the assertions of the authors, in the recent periods, besides revenue generation and profit maximizations the businesses also need to focus on playing the roles of positive contributors to the societies as well as of that of meeting the interests of all the stakeholders related to the businesses, which include the consumers, investors, suppliers, investors and the society and community as a whole in which they operate. In this context, the presence of a robust and effective framework of supply chain management is highly needed as the same helps in meeting the needs of all the stakeholders attached with the businesses, which in turn helps the businesses to enjoy increased goodwill and positive reputations in the markets, thereby experiencing the positive impacts of the same in the aspects of profitability, competitiveness and sustainability in the markets (Lindgreen and Swaen 2010).
Quality in Supply Chain Management
From the above discussion and extensive reviews of the literary and scholarly evidences, it is evident that in the current period, with the increasing expansion of businesses across the global framework and with the production and operational processes of businesses becoming more widespread, involving increased number of participants, both on the supply side as well as on the demand side, the need for efficient supply chain management in the companies have become increasingly popular and important in the businesses. However, as argued by Talib, Rahman and Qureshi (2011) with the level of competition increasing among the businesses, in the recent periods, the rivalry is no longer confined to business versus business in an industry, but has instead percolated to supply chain versus supply chain of the different companies. The authors, in this context emphasizes on the need for the companies to ensure quality in the domain of supply chain management in the companies.
de Sousa Jabbour et al. (2014), however, in this context, argues that although the need for quality management in supply chain performance has been felt in the contemporary global commercial scenario, especially for achieving competitiveness over the rivals and long-term profitability as well as sustainability, there still remains confusions regarding how to incorporate and ensure quality in the supply chain management activities.
Mellat-Parast (2013), highlights that in the recent periods, the integrations of the quality in supply chain management can be seen in the newly formed and popular model, known as the Supply Chain Quality Management. However, to understand the conceptual framework of the newly developed and increasingly popular model of Supply Chain Quality Management in the global commercial aspects, it is of utmost importance to understand the aspects of Quality Management in the businesses across the globe.
Quality ManagementSallis (2014), by emphasizing on the importance of the aspects of the maintenance of quality in the production and operational frameworks of the business in the contemporary period, especially for higher customer satisfaction and higher sustainability as well as profitability, discusses the Total Quality Management Model and the applications of the same in the business frameworks elaborately.
Total Quality Management
As put forward by Sallis (2014), the Total Quality Management in the operational frameworks of the businesses across the globe, refers to an approach of management which focuses in attaining long-term success and sustainability by increasing the level of customer satisfaction with the concerned companies. As per the notion of TQM, the assurance of quality in the overall process and products of a company requires all the members of the organizations to participate for the improvement of aspects like product, process, operations and the overall company culture and the work environment.
The eight primary principles of the Total Quality Approach for quality management in a company, in the generalised scenario, as highlighted by Goetsch and Davis (2014), can be seen to be as follows:
- Focus on the customers-The key factor which finally determines the quality of the product or service offered by a company is the customer base of the same.
- Involvement of all the workers-For ensuring presence of quality involvement and total commitment of all the employees of the companies are required, which requires empowerment of the employees and an environment where they work and communicate freely.
iii. Process- Proper designing and implementation of the production and operational processes are required to ensure quality and better performances of the companies (Zehir et al. 2012).
- Integration-For total quality improvement and management horizontal as well as vertical integration of the different discrete but related activities and processes in different operations of the businesses efficiently.
- Strategic approach-For assurance of the total quality management, a systematic approach has to be created (inclusive of strategic planning and management) for the purpose of achieving the vision and goals of the organizations (Talib, Rahman and Azam 2011).
- Factual business decision-making-Quality in the operations of the business requires the companies to analyse and monitor their performances and the positive and negative trends with time. For the purpose of the same, collection and analysis of data on the performance of the same becomes necessary, which in turn helps the company to improve the accuracy of their decision making and performance predictions (Tanninen, Puumalainen and Sandström 2010).
vii. Continuous Improvement- For quality assurance in a company, continuous process of improvement is required in both analytical and creative aspects so as to remain competitive and to meet the demands of the stakeholders.
viii. Communicational framework- Sadikoglu and Olcay (2014) assert that the presence of effective communication channels helps in the aspects of implementation of strategies, speeding up process, coordinating activities and also in motivating and encouraging the employees and increasing the satisfaction levels of the different stakeholders, which in turn is a component of quality improvement in the operational framework of the companies.
All these factors have considerable impacts on the supply chain management activities and outcomes, which can be seen to be discussed by different literary and scholarly works, the primary ones being discussed in the following section.
Impacts of Quality in Supply Chain ManagementChen, Zhang and Delaurentis (2014), in their elaborate research supported by empirical findings, point out several crucial implications of management of quality in the supply chain management scenarios in the global business frameworks, the primary ones being as follows:
Reduction of uncertainties and variations- Proper and efficient quality management framework, as argued by the authors, help in reducing the process uncertainties and variations in the operational frameworks of the companies, which in turn helps in improving the supply chain performance of the same. With the improvements of the quality management the number of defects as well as the cycle times reduces which in turn helps in improving the level of efficiency in supply chain management of a company (Ou et al. 2010).
Delivery of products or service- According to Aung and Chang (2014), with the improvement of the overall quality management in the operational framework and processes of a business, the aspects of on-time and efficient delivery of the products and services to the end users of the same, improves, which in turn indicates towards the positive impacts of the improvement and incorporation of quality in supply chain management framework as delivery process is an integral part of the same.
Design for manufacturability- As per the assertions of Cabral, Grilo and Cruz-Machado (2012), the quality management practices in the business organizations in general, include aspects like that of design for manufacturability which in turn help the companies to develop new products, take new process decisions more efficiently and cost-effectively. Improvements in process decisions also enables the companies to switch from one product to another, thereby meeting the expectations of the customers more efficiently, which include quicker setup times, more efficient inventory management, reduction of waste formation and movement towards lean management (Tse and Tan 2011). All these aspects help in improving the supply chain performance of the companies to a considerable extent, thereby meeting both the expectations of the customers and the targets of the organizations.
Pipeline inventory reduction- The pipeline inventory in the production frameworks of business organizations include the amount of inventory between the different members of the supply chain framework of a business, which include also the work-in-process inventories between the different manufacturing operations of the business. In this context, Klibi, Martel and Guitouni (2010), argue that the implementation of quality management in the operational aspects, by reducing the number of defects and variations in the manufacturing processes and by decreasing the delivery and supply cycle times, also reduce the need for keeping huge pipeline inventories, thereby contributing to the overall cost efficiency and production efficiency aspects of the supply chain management frameworks of the concerned companies.
Communication with suppliers- As highlighted by Goetsch and Davis (2014), the aspects like that of supplier certification programs, regular communications with that of the suppliers, fulfilling the interests of the suppliers and other quality management aspects regarding the supply of raw materials and inputs, help in ensuring quality in the raw materials as well as timely delivery of the same to the manufacturing units, which in turn smoothens the production process, thereby ensuring better performance of the supply chain of the company.
Customer relationship management- Maintaining proper quality in production and operational processes helps in increasing the level of satisfaction of the customers and thereby increasing the goodwill of the company. The supplier-customer relationship being one of the virtues of the total quality management framework, it helps in increasing the efficiency of the supply chain management frameworks in the aspects of addressing the needs and feedbacks of the customers, which in turn help the company to ensure higher profits and sustainability (Bergman and Klefsjö 2010).
Supply Chain Quality Management
Over the years, with the increased importance of incorporation of quality management in different operations and activities in a business, especially in the aspects of the different processes in the supply chain of the companies, the concept of Supply Chain Quality Management has evolved in the contemporary global business scenario, which is an integration of Supply Chain Management and Quality Management, as shown by Lin, Kuei and Chai (2013).
According to Zhu et al. (2010), the newly developed Supply Chain Quality Management framework in contemporary business operations, refers to the integration of the activities of quality management in the supply chain management framework of the companies. The SCQM, in businesses, is thus, the coordination of all the participants in the production and operational processes in the supply chain of the companies, with the intention of continuous improvements of the products or services, process and creation of value so as to maximise the satisfaction of the customers as well as the profitability and sustainability of the companies.
Best Practices in Supply Chain Quality ManagementBlanchard (2010), in his scholarly work, highlights the best practices which can be found across the global business operations in the different aspects of Supply Chain Quality Management to be as follows:
For Product/Process Design:
- Translation of customer requirements into products and services, with capabilities of the suppliers into consideration
- Using relevant engineering and other tools for development of new products or services to ensure quality improvement
- Ensuring cross-functional communications to reduce time for product development and errors in the same (Zailani et al.2012)
- Development of trust among the supply chain members
For Delivery and Support:
- Documentation and management of the value-added production as well as support or delivery activities across the entire supply chain
- Usage of systematic methods of variation identification, product quality measurements and for implementations of corrective actions in case of interruptions or defects
- Continuous process improvements for better quality, shorter cycle times and better performance of the supply chain participants of a company
- Monitoring performances of the suppliers and developing robust partnership relations across the supply chain, from the procurement of raw materials to delivering the end product or service to the final customers (Zailani et al.2012)
Literature Gaps
A significant number of literary works and scholarly evidences can be seen to be present in the contemporary global scenario, in the aspects of evolution of the concept of supply chain management, the impacts and importance of applications of the same in the global business framework, the activities which is taken into account and also in the aspects of the importance of quality in supply chain management, the development of the notion and application of supply chain quality management and the best practices present in the contemporary global framework, in these aspects.
However, a lack can be seen to be remaining in the literary evidences, especially in the aspects of how the importance of quality is perceived in supply chain management operations in the UAE, especially in the manufacturing sectors, both from the perceptions of the customers as well as the producers and how the same is incorporated in the supply chain activities. The concerned research aims to fill these gaps by emphasizing on these aspects and also on the core practices which are already present in the supply chain management in the manufacturing sector of the UAE.
Conceptual Framework
Keeping the above discussions into account the concerned research intends to follow the following conceptual framework:
Research Methodology
For any research to be robust and relevant to the purpose, it is of immense importance to design a proper research methodological framework with appropriate tools and techniques to carry out the research related activities (Taylor, Bogdan and DeVault 2015). Keeping this into consideration, the methodological framework followed by the concerned research can be seen to be as follows.
Research Design
The research design shows the ways in which the different research related activities and information are coordinated and utilised to fulfil the purpose of the concerned research.
The explanatory design helps in the identification and explanation of different incidents and is generally used in quantitative studies. On the other hand, the exploratory design helps in in-depth analysis of an issue of concern (Lewis 2015). The descriptive design helps in studying phenomenon, by considering all the evidences available and then describing the issue based on the evidences. In the concerned study, the descriptive design is adopted keeping into account the primary aim of the research, of that of studying the importance of quality in supply chain management in the manufacturing sector of the UAE.
Research Philosophy
The nature, source and knowledge on the basis of which a research is conducted is known as the research philosophy, which in turn are of three primary types:
Figure: Types of Research Philosophies
(Source: Dang and Pheng 2015)
The Positivism approach involves hypotheses formation and testing for a study and is highly structured, while the Realism Philosophy can be applied for both qualitative and quantitative methodology and for the concerned subject matter. The Interpretivism philosophy, on the other hand, facilitates in-depth analysis and interpretation of the concerned issues. The concerned study, with the objective of studying the perceptions of consumers and producers regarding the importance and impacts of quality in supply chain management in the manufacturing sector of the UAE, incorporates the realism philosophy in this aspect due its highest relevance (Mkansi 2012).
Research Approach
The way in which a research is carried out is shown in the research approach followed in a concerned study, which are of two main types:
Figure : Types of Research Approaches
(Source: Graham 2013)
In the deductive approach, the hypotheses are formed before collection of evidences and based on the analysis of the evidences these hypotheses are either accepted or rejected. On the other hand, inductive approach involves the collection and study of the evidences, based on which new observations, patterns and theories are inferred. Taking this into consideration, the concerned research takes an inductive approach is adopted.
Data Sources, Nature, Collection and Analysis Methods
Data Sources
In general, researches are conducted on the basis of data collected from different sources, which are primarily of two types- primary and secondary data. The primary data includes those data which are collected from the relevant respondents by the researchers themselves. However, although these data are more accurate however, collection of such data takes time and is a costly process (Richard 2013). The secondary data on the other hand, are collected from different sources and data reserves, which in turn is a time and cost-efficient process but there remains a threat of unintended biasness and higher scopes for errors in these types of data.
Keeping the significances and limitations of both types of data into consideration, the study collects both secondary and primary data for the purpose of analysis and interpretation of the issue considered (Polit and Beck 2010). While the secondary data is collected for the purpose of studying the current core practices of supply chain management and quality incorporation which are currently present in the industrial sector of UAE as a whole, the primary data are collected from the consumers and managers, so as to incorporate their perceptions regarding the importance of quality in products and services and the implantation and implications of quality in supply chain management.
Nature of DataWhile the quantitative data deals with the cardinal and numerically measurable aspects of the issue concerned, there are many aspects and attributed related to a phenomenon, which are ordinal or abstract in nature and are thus not included in the quantitative evidences. These aspects are incorporated in the qualitative data. To make the findings of the study more robust, the concerned research collects both quantitative as well as qualitative data on the aspects of quality, its importance, impacts of quality on supply chain management and the ways in which the same can be incorporated (Hussein 2015).
Data Collection ProceduresThe secondary data, regarding the best and core practices in the supply chain management in the overall industrial aspects of the UAS, for the concerned study, has been collected from different sources like that of journals, peer reviewed articles, statistical data sources (both government and non-government and authentic ones), especially of that of the concerned country (Neuman 2013).
On the other hand, primary quantitative data have been collected with the help of survey questionnaires from 50 respondents (both on the demand side as well as supply side of manufacturing industry of the UAE). The respondents have been selected by the random sampling method in order to prevent any intended or unintended bias in the sample selection process (Cline 2011) and the sample size selected has considerable presence of people from both the genders, different age groups and financial positions. The quantitative survey questionnaire has been formed of close-ended questions formed with the objective of capturing the perceptions regarding the importance of quality in supply chain management and how they perceive and value quality in a product or a service (Wilcox et al. 2012).
Primary qualitative data have also been collected from four managers of different manufacturing companies in the concerned country, in the form of in-depth interviews consisting of several open-ended questions, specifically with the intention of capturing their ideas and perceptions regarding the importance as well as implementation of quality management in supply chain management framework in their work-places.
Data AnalysisFor the purpose of analysis of the quantitative data collected, the statistical software SPSS has been used and the relations between the different dependent and independent variables (regarding the respondents’ perceptions of quality as a whole and also in the aspects of supply chain management) have been studied and analysed with the help of the statistical software platform. Statistical methods like that of frequency analysis and correlation analysis have been conducted for the purpose of interpretation of different aspects of the data collected (Treiman 2014). On the other hand, thematic analysis has been done for the qualitative data collected to capture the perspectives of the managers in the manufacturing sector of the UAE. A secondary analysis has been done on the basis of journals and literary sources as well as statistical evidences present, regarding the core practices regarding the supply chain management in the UAE, in the industrial sector in general as well as in the manufacturing sector of the country in general (Miles, Huberman and Saldana 2013).
Ethical Consideration
For any research to be robust and productive as well as to be true to its objectives, it is of immense importance to conduct the research in an ethical framework, abiding by the ethical norms existent in these aspects. Keeping this into account, the concerned research tries to abide by the following ethical standards to maintain the quality of the concerned research:
- The respondents have been selected for the primary data collection by the process of random sampling, so as to prevent any kind of intended or unintended bias in the aspects of selection of the respondents (both the customers as well as the managers of the manufacturing companies in the UAE).
- The interviews with all the respondents (customers and managers) have been carried out only after seeking their consent and their responses have also been recorded with their permission (Resnik 2011).
- The responses and perceptions collected from all the respondents have only been used for the purpose of the research and have not been revealed to any external sources.
- To maintain the dignity and integrity of the respondents’ confidentiality has been maintained in the entire selection and data collection process.
- The data collected have been analysed and interpreted unbiasedly and the results obtained have been discussed impartially to stay true to the purpose of the concerned research (Gillan and Pickerill 2012).
- The research activities have been carried out only after receiving permission from the Ethical Board of the esteemed university.
Research Limitations
Due to the presence of time and cost constraints the research only focusses on a small number of respondents (both customers and managers of manufacturing units), which in turn leaves the risk of non-inclusion of all the variations in the opinions which can be present in these aspects. Also, the research primarily concentrates on the impacts and implications of quality management in supply chain activities in the manufacturing sector of the UAE, thereby limiting its scope and does not consider the variations in these aspects in all the industries in the contemporary global commercial scenario.
Data Analysis
To study the impacts of quality in supply chain management as well as the ways of implementation of the same and the limitations in these aspects, the concerned research has resorted to collection of both primary as well as secondary data, the analysis of the same can be seen in the concerned section.
Secondary Data Analysis
Hurdles in Supply Chain Practices in the UAE
Sundarakani, Tan and Over (2012), venturing in the overall domain of supply chain management aspects in the industrial sectors of the United Arab Emirates, identify several difficulties and hurdles in the implementations of the Supply Chain Management in the concerned country, the primary ones being as follows:
- Obstacles in information processing-This indicates towards the distortions in demand information, which usually occur between the different stages in the supply chain operations, which in turn leads to increase in the level of variabilities and defects.
- Incentives Obstacles-The incentives which the different participants in the supply chain management operations of the companies leads to varied actions on their parts, which often increases the level of variabilities.
- Pricing Obstacles-As per Randeree, Mahal and Narwani (2012), there also remain significant confusions regarding the pricing policies for products and services which lead to increase in time taken and costs of the companies as well as in the variabilities.
- Behavioural Obstacles-Randeree, Mahal and Narwani (2012), also indicate towards the presence of what is known as “Bullwhip Effect” within the supply chain operations of the organizations in the UAE, in general, which in turn, refers to the problems and lack of coordination which occurs in the aspects of learning within the organizations. These in turn, lead to faulty structure and faulty communications between the participants in the different stages of supply chain management within the organizations.
Gould, Macharis and Haasis (2010), in this context, highlights the core practices which are usually present in the aspects of supply chain management in different industrial aspects of the contemporary commercial scenario of the UAE. According to the authors, the primary practices which can be seen to be present in these aspects, in the concerned country, are as follows:
- Identification of the core competencies
- Optimization of the roles as well as responsibilities in the entire supply chain framework
- Standardizations and modularisations of the model
- Designing the manufacturability, maintenance and life-cycle performance of the products and services delivered by the concerned companies
- Building up alliances with the different suppliers and service providers
- Development and production of products and services jointly with that of the suppliers
- Multi-project and pre-project sourcing (Balasubramanian 2014)
- Licensing and patenting activities
- Development of robust and long-term customer and product relationships
- Investment in the customers
- Equity investment in the suppliers of products related to the products offered by the company
- Building robust product demand forecasts (Bag and Anand 2014)
Keeping these into consideration, the impacts of quality in the behaviour of the customers as well as impacts and implementations of quality management in the aspects of supply chain performances of the companies in the manufacturing sector of the UAE, are discussed in the following sections, with the help of the data collected and analysed in these aspects.
Primary Analysis: Quantitative Data Analysis
Frequency Analysis
The data for quantitative analysis has been collected from the 50 customer’s perspectives regarding quality in the supply chain as well as in the products and services in the manufacturing sector across UAE. The important criteria’s for evaluating the supply chain quality among the customers has been analysed with the parameters such as Quality of the Product delivered, Durability, Price of the Product, Post purchase support for the products and Feedback provided by the company. In addition to this, some of the other questions for the study has been included with the types of the suppliers and their dependency. The study has also shown the opinion on the main criteria of quality in the supply chain, response on the main factor for quality of the product, opinion on the quality of the product delivered impacting the purchase decision, opinion on the high priced 3PL supplier’s providing better service than the other low-priced players and expectation on the feedback provided by the company.
Age of the Respondents
The age of the respondents of the study is seen with customers in the range of 35 to 45 years old. The second highest category of the individuals selected for the survey is seen to be of age between 25 years and 34 years.
|
Frequency |
Percent | |
Valid |
18 to 24 |
7 |
14.0 |
25 to 34 |
12 |
24.0 | |
35 to 45 |
16 |
32.0 | |
46 to 55 |
5 |
10.0 | |
56 or Older |
10 |
20.0 | |
Total |
50 |
100.0 |
Response on the employment status
It needs to be discerned that most of the customers considered for the evaluation on the employment status are seen under the list of individuals who are employed and working full time. A considerable amount of the customers is depicted to be employed and working part-time.
| |||
|
Frequency |
Percent | |
Valid |
Employed, working full time |
16 |
32.0 |
Employed, working part time |
11 |
22.0 | |
Not Employed |
7 |
14.0 | |
Retired |
7 |
14.0 | |
5.00 |
9 |
18.0 | |
Total |
50 |
100.0 |
Supplier Service dependency on a regular basis
The dependency on the services of the suppliers are considered to be mostly from the Independent and Trade Show customers. The second highest responders for the study are discerned in the category of manufacturers and vendors.
|
Frequency |
Percent | |
Valid |
Importers |
7 |
14.0 |
Wholesalers and Distributors |
15 |
30.0 | |
Manufacturers and Vendors |
11 |
22.0 | |
Independent and Trade Show Reps |
17 |
34.0 | |
Total |
50 |
100.0 |
Opinion on the main criteria of quality in the supply chain
The main opinion on the criteria for the quality in the supply chain needs to be depicted with the price of the product. Therefore, a greater number of the customers are concerned about the price on which the products are received from the suppliers. These criteria of the supply chain quality are seen to be followed by the responses related to the post purchase support for the products.
| |||
|
Frequency |
Percent | |
Valid |
Durability |
5 |
10.0 |
Feedback provided by the company |
6 |
12.0 | |
Quality of the Product delivered |
10 |
20.0 | |
Post purchase support for the products |
13 |
26.0 | |
Price of the Product |
16 |
32.0 | |
Total |
50 |
100.0 |
Response on the main factor for quality of the product
It needs to be discerned that most of the customers have considered the option for live tracking for driving the quality in the supply chain. In addition to this, the customers are also concerned about the zero discrepancy in terms of the number of units delivered to them.
|
Frequency |
Percent | |
Valid |
Intact Packaging of the Product |
12 |
24.0 |
Live Tracking |
15 |
30.0 | |
Shortest delivery time |
9 |
18.0 | |
Zero discrepancy in number of units delivered |
14 |
28.0 | |
Total |
50 |
100.0 |
Findings from the frequency analysis
The total mean age of the respondents has been seen with option 3 of the frequency distribution. Some of the other interpretations of the data needs to be discerned with the options 3 for the employment status, supplier services on which the respondents depend on a regular basis from the frequency distribution. In addition to this some of the other facets of the study has been discerned with the options 2 and 4 for opinion on the product delivered factor and purchase decision factor. Moreover, the feedback provided by the company has been referred with option 3. The purchase service and the durability of the products are taken into consideration with the options 3.
Correlation Analysis Table 11: Correlation of High priced 3 PL suppliers and quality of the product |
Correlations | |||
|
High priced 3 PL suppliers provides better service than other low priced players in the market |
The quality of the product delivered impacts the purchase decision | |
High priced 3 PL suppliers provides better service than other low priced players in the market |
Pearson Correlation |
1 |
.593** |
Sig. (2-tailed) |
|
.000 | |
N |
50 |
50 | |
The quality of the product delivered impacts the purchase decision |
Pearson Correlation |
.593** |
1 |
Sig. (2-tailed) |
.000 |
| |
N |
50 |
50 | |
**. Correlation is significant at the 0.01 level (2-tailed). |
Correlations | |||
|
The quality of the product delivered impacts the purchase decision |
Durability of the product is a major component of the supply chain quality | |
The quality of the product delivered impacts the purchase decision |
Pearson Correlation |
1 |
.457** |
Sig. (2-tailed) |
|
.001 | |
N |
50 |
50 | |
Durability of the product is a major component of the supply chain quality |
Pearson Correlation |
.457** |
1 |
Sig. (2-tailed) |
.001 |
| |
N |
50 |
50 | |
**. Correlation is significant at the 0.01 level (2-tailed). |
Findings from the correlations
The Pearson correlation of the study has been conducted with the inclusion of the High priced 3 PL suppliers who provides better service than other low-priced players in the market and the quality of the product delivered impacts the purchase decision. This is evident with the high correlation value of 0.59. In addition to this, there is a high correlation among the quality of the product delivered impacts the purchase decision and Durability of the product. This can be inferred with the high correlation of 0.457.
Qualitative Data Analysis
In the concerned research, six main themes regarding the implementation of the quality in the SCM, as can be found in the perceptions of the four managers, working in different manufacturing companied of the UAE, has been identified to be leadership, Information, Sustainability, Stakeholders involvement and commitment and Continuous improvement and innovation.
Theme 1: Leadership in performance management
The leadership and the efficiency of the leadership structure can be seen to be pertained as one of the most crucial aspects in the domain of performance management of the operations of the companies, including that of the performance of the supply chain operations. This relationship is often discerned to be difficult to the built. As per the transcriptions of the interview it needs to be discerned that the significant nature of the considerations for the leadership is seen that the leadership aspect is identified with the quality variables. In addition to this, there may be the requirement of the several types of the cultural changes pertaining to the supply chain. The development of the close relationship with the parties is also necessary for the assuming the leadership to integrate different parties. In addition to this, the effectiveness in the leadership is able to enhance the overall relationships with the suppliers which has positively impacted the quality management. The leadership aspect in the organizations has been able to improve the differences concerned with the practices of the HR and supply chain. The leadership also implies the influence of the management which shapes operations pertaining to the supply chain partners.
The top management is concerned with the organization quality and cooperate with the buyer-supplier relationship. This has been further conducive in enhancing the trust of the supply chain quality. At times when the top management is concerned with providing the unity of purpose and direction for the organization then they are able to create an internal environment in which the people become aware of the achieving the organizational objectives. The core enterprise in the supply chain has been further able to focus on the relevant concerns which are seen to be associated to the issues as per the quality management. The use off the leadership in the in the replies of the interview can be identified with the improving the relationship between the supply chain members. This is also beneficial in improving the cost efficiency, as can be seen to be highlighted by one of the respondents:
“The focus of the company is seen to be based on the leadership which is responsible for improving the relationship between the supply chain members. This is also beneficial in improving the cost efficiency”.
In addition to this, there are several other respondents have stated that the leadership aspect has been considered to be helpful for the maintaining cooperative culture which changes among the people which are the in the supply chain. This consideration is evident with the response provided by the fourth manager. As per this transcript it can be inferred that “the focus on the quality in the SCM is seen to be considered with the leadership aspect which is a result of maintaining cooperative culture which changes among the people which are the in the supply chain”.
Theme 2: Continuous improvement and innovation
The operations and the production are subjected to the activities of the different members who are involved in the supply chain as per the continuous improvement program. These programs are further considered with the reducing the overall setup time and increasing the production capacity and forging any rework which as a result of the improvements as per the learning-based materials. The development with the supply chain process is further depicted to be evident with the considerations of the importance of the continuous learning improvements as per the competence of the supply chain. It has been also discerned that there needs to be an augmented focus put with the constant mode of the self-assessment which is evident in terms of the various types of the factors as per creating the cooperation among the partners of the supply chain who are responsible for enabling innovation for the customers. Hence, this is depicted to be important for the involvement of the supply chain partners in the joint improvement of the activities which are responsible for increasing the level of influence of the SCQM. The increased involvement of the customers and the suppliers is also seen to been evident in terms of the increasing the influence of the SCQM integration and innovation. The main indication of the continuous improvement and innovation is evident among the suppliers with the considerations of the number of issues which are based on the important aspects of ensuring quality in supply chain management. For instance, one manager has stated that
“Organisation has been known to face significant issues which are related to the continuous improvement brought by the innovation. The production and the quality improvement team have to go through challenges which related to the development of supply chain competence”.
This inference shows that the improvement in the SCQM has often being hampered by the cost involved in the innovation. There needs to be several types of the factors determined with the strategic changes which needs to be taken with the innovation factor.
Theme 3: Sustainability
The sustainability among the organizations is ensured with the number of factors which are based on the improvement in the social, economic and environmental, quality and social issues. There needs to be several types of the other factors which are needed to be taken into considerations as per linking of the social, economic and environmental, quality and social issues with the perfect integration of the quality. For instance, in case the buying companies are seeking for an advantage for the purchase of the supplies, then the same needs to be assessed with working conditions. The environmental management is evident to show the important considerations of the study as per facilitating the adoption of the good environmental practices. In the economic perspectives the quality in the supply chain among the organizations has been ensured with the considerations of the number of factors which are seen to be having a direct relevance of the different types of the concerns about the actions of the customers and suppliers on a note of economic issues, social issues pertaining to greater influence on the SCQM integration. The discussions on the sustainability theme can be drawn on number of occasions from the managers have provided the recommendation for including sustainability among the organizations.
The inference regarding sustainability and economic aspects can be seen in the following statement of one of the managers interviewed:
“Recommend to management for maintaining a separate provision for focusing on the sustainability among the organization. The focus on the economic aspects will also allow the company to maintain and develop its performance in the long run”.
In addition to this, there has been number of responses from the managers of the supply chain companies in UAE where they have stated that the various types of the issues in the supply chain can be addressed
“The issues at present can be identified with sustainability and involvement of the impact of the economic impacts with the materials procured. The social issues are often not seen to be integrated with seeking the advantage with purchase of the supplies”.
Theme 4: Stakeholders involvement and commitment
The intensive cooperation of the stakeholders has been depicted with the increased cooperation to coordinate and promote the quality management is different in nature. The organizations are needed to participate actively on an immediate basis. The SCM is also depicted to focus more on the aspects of the relationship with the external partners of the business. On the other hand, quality management focus has been seen with more emphasis with the internal participation of the employees. A negative consideration on the company’s product or service may result in breach in trust which may have serious negative implications on all stakeholders in the future. The integration of the stakeholders has been further identified as per the various types of the depictions of the study which has been able to improve the overall mutual understanding among the external stakeholders and coordinate with the flow of information thereby building trust among the internal and the external stakeholders. Stakeholders should also focus on reducing the gap in the implementation of the SCQM. The higher is trust in the SC among the stakeholders, greater will be the overall contribution pertaining to the SCQM integration.
The information obtained from the transcript of the study has been conducive in terms of aiming to coordinate and promote the quality management in collaborative manner. This theme is clearly evident with the response of the manager stating:
“Recommendation to the stakeholders would be aimed at coordinate and promote the quality management in collaborative manner. In addition to this, it has been seen that the organization need to participate in the number of initiatives which are seen to be related to the immediate action of the stakeholders and degree of stakeholder’s participation”.
Theme 5: Information
The evidence pertaining to the buyers and sellers are often seen to process a symmetric information related to quality of the product. Henceforth, it is necessary for the buyers in portraying the information about capabilities and performance as stated to the suppliers. They will be able to provide a better insight to meet the desired quality and relevant information on both upstream and downstream operations. The evidence of use of certain information can be clearly identified with recommendations pertaining to meeting of certain objectives of quality parameters and ensuring supplies are able to exchange information across the ERP process with better strategy.
“The main recommendation for the company pertains to meet the specific expectation of the quality and optimum flow of both upstream and downstream information. The partners and the suppliers need to exchange information as per better strategy adoption for ERP”.
Therefore, the use of such information is important for maintaining quality in supply chain for the producers in UAE. Moreover, the partnership with the suppliers are also conducive in bringing positive results in terms of exchange of information. The ERP process in general will be able to ensure better transparency and tracking abilities of information. This will be ensured with symmetrical monitoring and controlling of the flow of materials throughout the operation chain. The effective sharing of information in the supply chain seem to be supported with advancements made in the field of information technology.
As per the response provided by the managers some of the companies of UAE faces several challenges associated to ensuring the quality in the SCM is often discerned with exchange of the information. This is evident with the response of a asymmetrical information about the quality of information processed.
“The company faces significant amount challenges which are associated to ensuring the quality in the SCM is often discerned with exchange of the information. It has been also seen that the information supply chain possesses asymmetrical information on the supply chain operations. This is seen to cause significant problems for the disparity in the expected quality of the information”.
Theme 6: Management and strategic planning
The strategy planning is considered as the key enabler for SCQM. The important requirement in this aspect is seen with finding the weakest link pertaining to supply chain of the company. In case the supply chain has several developing and close strategy planning processes then an organisation needs to work with few suppliers was able to provide high quality of service. On the contrary, it is also important to manage the workflow of five wider suppliers. Sustainability, leadership, culture and information technology management is important aspect of overall quality and supplier participation. The greater implementation of strategic planning will be able to increase the influence of SCQM integration.
The responses pertaining to strategic information can be directly identified with focus of the company with ensuring production design. Such a response can be evident with the managers of UAE supply chain industry:
“The management of my organization focuses on the quality aspect by ensuring production design. We strive to implement strategic information by sharing necessary information as per culture, leadership, sustainability and IT”.
In addition to this, the strategy initiatives of the company are also focused with customer and the producers. As per the transcriptions of the interview the managers have stated that most companies focus on quality aspect of the raw materials which is identified as supreme strategy initiative along with ensuring minimum cost of procurement. The reliability of such an information is evident with:
“Company’s main focus is seen to be associated to the relationship with customer. The main focus of the company has been seen to be depicted with the focusing on the quality of the raw materials. The main focus of the strategic initiatives of our company has been taken into consideration with the cost efficiency”.
This shows the focus of the company on both aspect of maintaining positive relationship with the customers and procure raw materials at the best price.
Discussion
The important aspects in the discussion area of the study relates to the application of the both the quantitative and qualitative aspects in this scenario. It can be inferred that the significant aspects in terms of the improvement in the quality of the supply chain has been depicted to be important as per the customers of the service. It needs to be also understood that the translations of the requirement of the customer relating to the products, services and capabilities to the products and services delivered to them, needs to be considered with the process design. As per the results of the quantitative study it can be said that the customers are concerned about the price on which the products are received from the suppliers. The perceptions and responses recorded, in the qualitative interviews with the managers working in the different manufacturing companies in the UAE, quality is seen to be one of the most important aspects in the overall operational framework as well as in the supply chain management operations of the companies in the manufacturing sectors of the companies. The same can be achieved by focussing on robust leadership structures, improving the products and processes and also incorporating innovations in the same in the production processes, establishing overall sustainability in the supply chain management processes, monitoring and encouraging productive involvement and commitment of all the stakeholders and also by facilitating proper flow of information among the different participants throughout the entire supply chain of the companies.
The relevant tools pertaining to the engineering can be also seen to be evident with the various types of the aspects used in terms, of the engineering and the tools used for development of the new products to ensure improve in the quality of the service. As per the depictions of the qualitative study it can be stated that the managers of the supply chain industry in UAE look forward to continuous innovation which is the main driving factor for the innovation in the supply chain process. The inference from the quantitative aspects of the data has been able to be revealed with the strong agreement of the purchase decision getting influenced by the quality of the product.
The consideration of the various types of the cross functional tools in the study needs to be considered with the product development. The evidence of the use of the cross-function tool can be drawn from the various types of the inference as per the communication which takes place with the use of ERP. However, in terms of the ERP integration several companies have lagged in their performance. It needs to be also stated that development of trust among the supply chain members is an important aspect. The various types of the cooperation among the supplier is seen to be perceived as an important aspect in this scenario.
Conclusion And Recommendations
It is evident from the above discussion that in the recent period, with the increasing expansion of businesses across the globe and also with the number of participants (both in the demand as well as in the supply side) in the domain of different businesses increasing, the importance of the presence of an appropriate supply chain framework in the productive and other operational aspects of the companies has been increasingly felt across the globe, which in turn has been aggravated even more by the frequently changing needs, demands and preferences of the customers across the globe.
In this context, the UAE can be seen to be developing as one of the manufacturing giants in the contemporary period, which in turn has led to the increase in the importance of the supply chain management activities in the country, especially in the manufacturing sector. In the recent periods, the companies, in these domains tend to compete in the aspects of their supply chain efficiency and a considerable amount of the competitiveness, sustainability and profitability of the company as well as the level of goodwill and positive reputations which the companies enjoy in terms of the perceptions of the customers depend on the level of efficiency and cost-effectiveness which the supply chain operations and frameworks of the companies portray. This in turn, indicates towards the increase in the importance of quality management in the supply chain framework
Recommendations
From the above discussion, it is evident that the incorporation and development of quality management is extremely crucial in the supply chain management scenarios in the contemporary period, especially in the manufacturing sector of the UAE as the same has direct linkages with the level of customer satisfaction and their positive perceptions regarding the service quality of the companies, which in turn positively affects the profitability, competitiveness and sustainability of the companies in this domain. As can be seen from the responses of the customers, they tend to focus on the attributes and qualities of the products (like product durability) as well as on the service quality of the provider (like fast delivery, customer assistance, higher interactions and other aspects). This can be seen to be supported by the various literary works reviewed in the second chapter of the thesis, where many of the scholars can be seen to be strongly asserting that the quality of the products as well as services provided by the companies, have direct linkage with the customer satisfaction and emphasizing on quality management in SCM framework can have considerable positive implications in these aspects.
For the purpose of ensuring quality in supply chain management and for enhancing the performance of the same, the companies need to focus more on building the leadership structure and its efficiency in the operational framework and also needs to build a long-term, productive and sustainable supply chain framework with productive and mutually beneficial relationships with the suppliers and the customers. Integration of information related to the overall supply chain framework, though ERP is also one of the significant ways of incorporating quality in the supply chain system along with the process of continuous improvements and incorporation of innovations in the supply chain management operations.
Limitations and Future Scopes
The research, however, remains constricted to only the manufacturing sector of the UAE and the sample size considered is also small, which creates the possibility of exclusion of various perceptions regarding the impact of quality management in supply chain performances and the implications of the same in the global scenario. This in turn indicates towards the presence of huge scopes for the future researches in this domain, especially in the aspects of studying the impacts of quality in supply chain management and the ways of implementing quality management for enhancement of supply chain performance, both in different industrial domains of the UAE as well as in the global commercial scenario as a whole.
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