Identifying and managing supply quality risk

Abstract

Purpose The purpose of this paper is to provide a framework for identifying and managing supply quality risk (SQR). Design/methodology/approach The research method began with a literature study to form a grounded model of how organizations identify and perceive SQR and associate various supplier quality management practices (SQMPs) with SQR sources. The second phase consisted of structured interviews at three companies in the food machinery industry in order to refine these concepts and examine causal relationships. Findings The findings from this study indicate that firms may be more likely to implement integrative supply chain practices when supplier or component sources of SQR are considered to be a significant threat. Conversely, market sources of SQR were generally not perceived as being significant, and therefore do not warrant as much direct intervention in their management. Research limitations/implications Most previous studies on supply chain risk focus on delivery disruptions. However, there is a lack of knowledge on identifying, assessing, and managing supply risk associated with quality. By addressing these issues and outlining future research directions the authors help provide a starting point for contributing to this line of study in supply risk theory and practice. Practical implications The framework developed in this paper can aid supply chain professionals in understanding what constitutes SQR and providing insight to approaches for managing this form of supply risk. Originality/value This is the first empirical study that the authors are aware of that links various sources of SQR to specific SQMPs.

A conceptual framework for improving effectiveness of risk management in supply networks

“…Positive effects Hallikas et al, 2004;Lockamy and McCormack, 2012 Minimizes occurrence of risk events Sheffi, 2001;Wieland and Wallenburg, 2013;Zhu et al, 2017, Jüttner andMaklan, 2011; Improves disaster preparedness and ability to deal with future disruptions Enderwick, 2009;Tse et al, 2011;Chen et al, 2013;Zu et al, 2012;Cantor et al, 2014;Zsidisin et al, 2016 Avoids or reduces risks Propagates information security risk , "A conceptual framework for improving effectiveness of risk management in supply networks", International Journal of Logistics Management, (10.1108/IJLM-11-2018-0289), Accepted.…”

“…with supply network members Joint risk assessment Hallikas et al, 2004;Pournader et al, 2016 Joint risk mitigation planning Hallikas et al, 2004;Craighead et al, 2007;Manuj and Mentzer, 2008;Cantor et al, 2014 Joint business continuity planning Jüttner and Maklan, 2011 Information sharing, personal communication Spekman and Davis, 2004;Brandon-Jones et al, 2014;Li et al, 2015;Huong Tran et al, 2016 Knowledge sharing across the network and with external stakeholders Manuj and Mentzer, 2008;Jüttner and Maklan, 2011;Biotto et al, 2012;Ellinger et al, 2015;Scholten and Schilder,2015;Tukamuhabwa et al, 2015;Dabhilkar et al, 2016;Zsidisin et al, 2016;Busse et al, 2017 Joint problem solving with suppliers Reimann et al, 2017 Risk planning within the organization Collect data and intelligence on market trends and supply chain Cantor et al, 2014;Ellinger et al, 2015 Disseminate trends in supply chain with other functions Cantor et al,2014 Scanning the environment for potential disruptions Dabhilkar et al, 2016 Notify other departments when something important happens with a key Cantor et al, 2014;Ali et al, Chaudhuri, A., Ghadge, A., Gaudenzi, B. and Dani, S. (2020), "A conceptual framework for improving effectiveness of risk management in supply networks", International Journal of Logistics Management, (10.1108/IJLM-11-2018 Simatupang and Sridharan, 2005;Johnson et al, 2013 Minimize effect of disruption…”

Quality Risk Propagation of Complex Product Collaborative Manufacturing Supply Chain Network Based on CN and SoV

“…Ouyang studied the diffusion and identification of quality risk in the supply chain of dairy products based on CN [17]. Based on the characteristics of quality risk propagation, Zsidisin et al provided a framework for identifying and managing supply quality risk [18]. Based on the investigation of 31 Chinese automobile companies, Zhang et al studied the quality risk transmission law caused by the interruption of the supply chain of the automobile industry [19].…”

“…Using (18), calculate the propagation quantity of quality risk fluctuation from lower-level enterprise nodes to upperlevel enterprise nodes, as shown in Figure 9.…”

Supplier quality management and performance: the effect of supply chain oriented culture

“…Supplier Quality Management (SQM) is regarded as a key ingredient that is imperative for improving internal quality performance (Zsidisin et al, 2016;Lee and Li 2018). It is defined as a collection of management activities which are necessary ingredients for enhancing the quality performance of an organisation through the blending of supplier activities with the buyer activities and simultaneous engagement and communication between the two partiers (see Chakravarty, 2014, 103-4).…”