Quality Management and Supply Chain

International Journal of Operations & Production Management
Quality management in a supply chain perspective: Strategic and operative choices in a

textile-apparel network
Pietro Romano Andrea Vinelli
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Journal of Operations & Production Management, Vol. 21 Iss 4 pp. 446 - 460
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IJOPM
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Quality management in a
supply chain perspective
Strategic and operative choices in a

textile-apparel network
Pietro Romano and Andrea Vinelli
Department of Management and Engineering, University of Padova,

Vicenza, Italy
Keywords Supply-chain management, Quality management, Textile, Industry
Abstract Supply chain management (SCM) is conceived by academics and practitioners as
either an extension of logistics or an all-encompassing approach to business integration. From the
authors' point of view, SCM involves not only logistic activities but also other processes such as
quality management. This paper seeks to understand how quality can be managed using a supply
chain perspective and what the operative and strategic consequences are for both the individual
companies and the whole supply network. It reports a case study conducted on Marzotto, an
important Italian textile and apparel company, and its supply chain relationships. The study
compares the quality practices in the two different kinds of supply network of which Marzotto is
the focal firm. One is managed using a traditional customer-supplier approach and the other a
broader and more co-ordinated perspective. In the latter case, it was found that the whole supply
network could improve its ability to meet the expectations of the final consumer in terms of quality
through the joint definition and co-management of quality practices/procedures.
International Journal of Operations &

Production Management,
Vol. 21 No. 4, 2001, pp. 446-460.
# MCB University Press, 0144-3577
Introudction
``Supply chain management'' (SCM) and other similar terms such as ``network
sourcing'', ``supply pipeline management'', ``value chain management'', and
``value stream management'' have, in recent years, been receiving increasing
attention from academics, consultants and operational managers (Scott and
Westbrook, 1991; Saunders, 1995; Cooper et al., 1997; Tan et al., 1998; Croom et
al., 2000). Such terms are used to refer to the integrated management of a
network of entities, that starts with the suppliers' suppliers and ends with the
customers' customers, for the production and delivery of goods and services to
the final consumers (Lee and Ng, 1997). According to this approach, companies
do not seek to achieve cost reductions or profit improvements at the expense of
their supply chain partners, but rather seek to make the supply chain more
competitive as a whole.
Although SCM is a frequently encountered acronym these days, supply
chains have not yet been well understood. Many authors still tend to consider
SCM as being the same as integrated logistics management, and focus on
inventory reduction both within and across firms in the supply chain (Jones
and Riley, 1985; Davis, 1993; van Hoek, 1998; Boyson et al., 1999; Naylor et al.,
1999). On the other hand, many authors use the term ``supply chain
management'' to mean either the management of the supplier network (or
upstream network) or as a synonym of integration with suppliers, thus
considering it as just a development of the traditional purchasing and supply

management activities (Hines, 1994; Macbeth and Ferguson, 1994; Lamming,
1996; Banfield, 1999).
A debate has been developing in literature about what SCM really is and
about the ways in which it differs from integrated logistic management,
purchasing and supply management, materials management, and so on. Slack
et al. (1998) suggest that what distinguishes such different terms/practices is
the scope of the supply network they refer to (Figure 1). According to the
authors, SCM has developed into a concept with a broad span of concern and a
holistic approach to managing across company boundaries. In other words,
purchasing and supply, as well as physical distribution, relate to only one part
of the whole supply network, upstream and downstream respectively. Logistic
and material management take in larger parts of the supply network, while
SCM includes the whole network.
According to other authors (Hewitt, 1992, 1999; Stewart, 1995; Bechtel and
Jayaram, 1997; Cooper et al., 1997a; GSCF, 2000), what distinguishes SCM from
the terms/practices highlighted in Figure 1 is not just the scope, but also the
processes/activities it involves. Cooper et al. (1997a), for example, suggest that
SCM goes beyond integrated logistics because it aims to integrate all the
business processes, from end users to original suppliers, which provide
products, services and information that add value for the customers. The
Global Supply Chain Forum, a group of international companies and a team of
academic researchers, states that ``successful SCM requires a change from
managing individual functions to integrating activities into key supply chain
Quality
management
447
Figure 1.
Some of the terms used
to describe the
management of different
parts of the supply
network
IJOPM
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448
processes'' (GSCF, 2000). From this point of view, SCM involves not only
logistic activities (e.g. inventory management, transportation, warehousing,
order processing, etc.) even if extended to the whole supply network but
also other processes (e.g. customer relationship management, demand
management, order fulfilment, procurement, product development and
commercialisation, etc).
In this context, this paper aims to highlight how even quality management
could be an important process which characterises SCM.
Given this objective, this study tries to explain how quality can be managed
from a supply chain perspective and what the operative and strategic choices
and consequences are for the single companies and the whole supply chain.
This problem has been investigated by comparing quality practices in two
different types of supply network with the same focal firm: one managed using
a ``traditional'' customer-supplier approach and the other from a broader ``coordinated'' perspective. This analysis is based on the case study of a textile and
apparel company and its relationships with both upstream and downstream
supply network.
Quality in the textile apparel chain
The high quality of both products and services at each level of the supply
network has been recognised as an essential part of successful SCM (Johnson
and Wood, 1996; Coyle et al., 1996; Choi and Rungtusanatham, 1999).
Improving the quality of all supply chain processes leads to cost reductions,
improved resource utilisation and improved process efficiency (Beamon and
Ware, 1998). Several research studies have investigated how supplier-customer
relationships can affect the quality of both products/services and processes.
These studies, however, focused on the single company or on its immediate
suppliers and customers (Ebrahimpour and Johnson, 1992; Richardson, 1993;
Powell, 1995; Tan et al., 1998) and very few studies have considered quality
management from an SCM perspective (Forker et al., 1997; Choi and
Rungtusanatham, 1999). Indeed, in terms of product and process quality,
several advantages can be gained from managing the whole flow of materials
and information between customers' customers and suppliers' suppliers.
Furthermore, the quality level delivered to the final customer is the result of the
quality management practices of each link in the supply chain, thus each actor
is responsible for the final result.
This issue is particularly relevant in the textile apparel industry. This is a
sector where quality is one of the key competitive factors, and current
competition does not only concern the individual firm but, rather, involves the
entire supply chain (Evans et al., 1993; Forza et al., 2000). Indeed, the quality of
the final product that reaches the customer is clearly the result of a chain of
successive, inter-linked phases: spinning, weaving, apparel and distribution. In
the new competitive situation that has been developing within the sector,
quality can no longer be considered the preserve of high fashion or expensive
clothing, but must be a feature of all market segments and meet the specific
requirements and tastes of all types of customers (Forza and Vinelli, 1996; Itex,
1997). Furthermore, quality cannot be restricted to the area of perceived
quality, but must also take even more operational aspects into account. For
example, design should not only consider the style but also the specifications of
the finished product which must, in itself, be the reference point when checking
on quality during production. Likewise, requirements for supplier quality
assessment, raw materials, in-process material quality control and quality
procedures must also be defined.
All these aspects are particularly important in the sector which produces
classic menswear, because it is the most sensitive to questions of product
quality. Indeed, in this sector the problems of fashion/style are less important
than in the parallel sector for women, but the accuracy and quality of the
tailoring (i.e. clothing items are almost entirely hand made), the wearability/
practicality (i.e how the article of clothing feels when it is on, the right sizing
etc.) and the longevity and resistance of the textiles used are, perhaps, the most
important. The quality of the details, such as the accuracy of the stitching
(correct distances, no ruffling or pleating, etc.), the characteristics of the
materials used for linings, the extent to which the cloth stretches or maintains
its shape (suitability of the model for the customer's physiology, tailoring to fit
the shoulder blade, etc.), the quality and perfection of the garment's final
pressing (cfr. wearability) and the reproducibility of colours (shades), must also
be guaranteed.
Research approach
This study is based on data and information gathered directly by the authors
during an in-depth case study carried out within the Marzotto Group and
including its relationship with both upstream and downstream supply network
members. The Marzotto Group is one of the most important Italian textile and
apparel manufacturers. In 1999, the overall group turnover was 1,400 million
Euro and apparel turnover was 280 million Euro (58 per cent exported). In
particular, the case study analysed the quality management process within
Marzotto's menswear division (1999 turnover around 110 million Euro, 50 per
cent exported) and its supply network. Figure 2 shows the value tree of
Marzotto's menswear division. The value tree is an image that evokes the
supply network analogy: the trunk represents the focal firm, the branches
represent the suppliers, the roots represent the customers, and the thickness of
the branch/root indicates the degree of partnership present in each linkage
(Cooper et al., 1997b).
The supply network, for which Marzotto's menswear division is the focal
firm, can be divided into two sub-networks. In the first type of sub-network,
Marzotto's menswear division copes with suppliers and customers in a
traditional way to manage garment production, interacting upstream with both
the textile suppliers and the sub-suppliers for external production, and
downstream with the distribution chains. In the second type of sub-network, a
different perspective has been adopted. Here, Marzotto has established a
partnership relationship with its largest customer (about 15 per cent of overall
volume, equal to about 40,000 garments per year), an important international
distribution chain. This relationship envisages channel co-ordination
throughout the whole supply chain (i.e. suppliers of thread and textiles).
Quality
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Figure 2.
The value tree of
Marzotto's menswear
division
We refer to the first type of sub-network as ``traditional'' and to the second type
as ``co-ordinated''. Co-ordination relates to the use of the mechanisms employed
to sustain inter-firm co-operation: communication/decision/negotiation
mechanisms, social co-ordination and control, integration and link-pin roles/
units, common staff, hierarchy/authority relations, planning and control
systems, incentive systems, selection systems, information systems, and public
support and infrastructure (Grandori and Soda, 1995).
In order to highlight how quality management could be an important
process which characterises SCM, the quality management practices of the two
types of sub-network in which Marzotto's menswear division is involved are
described and compared.
In particular, the research intends to explore whether there are any
differences in terms of quality management practices and procedures within
the two sub-networks:
(1) At the strategic level: evaluation and choice of suppliers, critical factors
in determining competitiveness in the market, innovations in products/
processes in order to meet final consumer requirements, etc.
(2) At the operative level: definition and choice of specific manufacturing

processes, procedures for checking, inspections and quality controls,
identification of parameters that need to be monitored, use of feedback
from quality control activities, etc.
The study seeks to analyse such strategic and operative choices in terms of
consequences for the single companies and the whole supply network.
Case description
This section describes some practices and procedures for quality management
implemented in the traditional sub-network and in the co-ordinated one.
Choice and evaluation of thread and textile suppliers
In the co-ordinated sub-network, Marzotto's menswear division and the
distributor act jointly in choosing and evaluating thread and textile suppliers.
It is usually the distributor who suggests to Marzotto the names of the cloth
and lining producers who could be contacted, and then Marzotto itself adds
further names to the list. The final choice is supported by a supplier rating
sheet that evaluates both the product (quality and price) and the supplier
company (dependability, commitment to a long-term relationship and to an
inter-firm work group, etc.). Moreover, every second week a team of five to six
distribution managers visits Marzotto's factories and workshops in order to
check on and evaluate not only the production but also the threads and textiles
being used in the firm.
In the traditional sub-network, on the other hand, Marzotto is autonomous in
the choice and evaluation of its textile suppliers, and the latter are free to
choose and evaluate their thread suppliers.
Choice of the dyeing process
One fundamental requirement for all textiles used in men's suits is that there
should be ``no shading'', i.e. the colour should not vary at all and should respect
pre-set standards. In the co-ordinated sub-network, a perfect, homogeneous
shading of the cloth is a factor of strategic differentiation in determining
competitiveness in the market segment served by the distributor. In order to
meet final consumer quality requirements, Marzotto and its major customer
decided jointly to stop using the process in which the weaver dyes rolls of cloth.
They chose a different process in which the spinner dyes either the threads or
the hanks. The preferred process moves the dyeing phase ``back'' from weaving
to spinning and is more costly and slower, but it does ensure colour
homogeneity, which is important to the final consumer.
In the traditional sub-network, Marzotto does not interfere with decisions
made on the dyeing processes adopted by its textile suppliers. In this case,
therefore, the process of dyeing hanks/threads as well as cloth is used.
Definition of the ``ready to be made up'' procedure for checking textiles
Regarding the procedures for checking textiles, Marzotto decided jointly with
selected textile suppliers to eliminate double-checks on rolls of cloth (by
Quality
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weavers in output and by Marzotto in input) and to buy textiles that were
``ready to be made up'' i.e which did not need further checking before being sent
for processing. Indeed, in the packing list which is attached to the consignment
of materials that are physically sent, the supplier not only states the length and
width of the material but also notes any defects that there might be, and
specifies where the defects are, their gravity (according to a taxonomy of
defects previously defined together with Marzotto), and periodically emits a
test certificate for Marzotto. During the past year this procedure has made it
possible to cut the checking costs and has noticeably raised the level of service
(i.e. there has been a large drop in the number of returned textiles). Today this
procedure, first introduced in the co-ordinated sub-network, is fully used in the
co-ordinated sub-network and, to some extent, also in the traditional subnetwork.
Definition of the procedures for checking quality aspects that are important to
the final consumers
distributor act jointly to define three procedures for checking some quality
aspects that are very important to final consumers:
(1) Colour homogeneity.
(2) Physical parameters (reaction to water cleaning, dry cleaning, ironing,
perspiration).
(3) Chemical parameters (pollution loading, level of free formaldehyde).
As highlighted above, colour homogeneity is a fundamental requirement for all
textiles used in men's suits. In the co-ordinated sub-network the distributor,
after having carried out various studies, advised Marzotto to change the
traditional procedure used to check on colour constancy based on a D65 neon
lamp and use a TL24 neon lamp instead, which is considered to be more
reliable and effective. One consequence of the use of all these new processes
and procedures for managing quality in the supply chain, from spinning
through to the finished garment, is that a customer can buy a classic model of
jacket in Hong Kong and then, two years later, buy the trousers in London and
be sure that not only all the other details but also the colour shade of the two
garments will be exactly the same.
Regarding the physical properties of the cloth, the fastness of the dye, its
reaction to sweating and water, machine washing and dry cleaning, the effects
of sunlight, dry and steam ironing, etc., are all checked. Other tests concern:
piling, resistance to tearing; stitch/seam evenness and stability of size.
In recent years the general public has become much more aware of the
problems of environmental pollution and the use of eco-compatible chemical
products has become one of the ways of evaluating the quality level of a
product. A product parameter, termed ``pollution loading'', is therefore
constantly monitored and kept within pre-agreed limits.
Although all these physical and chemical tests are used in both the subnetworks, textiles are checked in the traditional sub-network by the garment
manufacturer, who uses standard laboratory procedures laid down in the IWS
(for wool) and UNI norms.
In the co-ordinated network, however, many tests have been ``personalised''
at the request of the distributor in order to meet the specific requirements of
and to fulfil the specific criteria for a garment's success in each sales channel.
Many of the tests, such as dry cleaning, water 378C, perspiration, rubbing and
light are, obviously, still carried out in the garment manufacturer's
laboratories, but they have been specially developed by the distributor and are
markedly more selective, specific and precise than the UNI tests, as far as
measurements and evaluations are concerned.
A very important test required by the distributor in the co-ordinated subnetwork, for example, is the one which measures the level of free formaldehyde
in linings. Formaldehyde is a chemical compound that is used during the
finishing stages of both textiles and lining materials. Formaldehyde tends to
evaporate over time but is very harmful for health as it can cause digestive
tract problems, such as ulcers, or, in more serious cases, cancer. Initially,
Marzotto only used to carry out the test for free formaldehyde on garments it
produced within the co-ordinated sub-network, but after a period it
autonomously decided to extend this check to all the produced garments.
Definition of new product/process solutions in order to meet final consumer
requirements
distributor act jointly to define new product/process solutions in order to meet
final consumer requirements. For example, on the basis of some consumers'
suggestions, a new innovative shape for pockets, designed to stop small change
falling out when the consumer is seated, was put into production. Another
example is an entire batch of trousers that did not pass the final check because
the lining of some pairs had not been pressed well at knee height and could
have proved uncomfortable for the final consumer. Personalisation of the
service to the final consumer has reached the point where the consumer
should he wish to can take the suit home to try it on better before purchasing.
Each suit is also guaranteed even after it has been sold. Should defects or other
problems come to light later (for example if the stitching breaks on an inner
lining) the consumer can take the suit back to the distributor's shop, from
where it is sent back to Marzotto, who carries out the necessary repairs. On the
contrary, no specific innovative solutions were found within the traditional
sub-network.
Definition of the ``super check'' procedure for checking the garments
In the co-ordinated sub-network, Marzotto and the distributor decided to
change the procedures traditionally used to check garments by adding a ``super
check'' on the final products. The traditional test consists of a rapid check in
order to detect visible defects (such as holes, marks, loose threads and creases)
and evaluates the garments from a ``commercial point of view'' or ``through the
eyes of the final customer'' (i.e. the garment should be well presented and look
good/clean, which means that it could attract at first sight). On the other hand,
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the super check is more detailed and precise, and evaluates a number of
important quality points for classic menswear from a ``technical point of view''.
At the start of each season, in fact, the designer determines what the key
quality requirements should be for the new collection. This process defines the
`ìmportant quality points'' that a garment must have and which each phase of
production, cutting out, sewing up and pressing, must respect. During the
super check, the specialised checkers must ensure that these important quality
points have been respected. The super check is carried out on samples of final
garments by means of quality charts containing the list of the parts that need to
be checked, as well as the detailed checking instructions/pictures for each part.
Experience has shown that some garments which passed the traditional
checks did not pass the super check. By highlighting the technical defects, the
super check reveals itself as a means and an opportunity for the firm to learn
from its ``mistakes'', thus improving operational processes. Quality control
techniques such as Pareto diagrams, cause/effect diagrams and check cards
are extensively used in the super-check phase to identify the reasons for any
defect, not only within the menswear division but also across the whole supply
network. For example, a defect may be the result of defective raw materials,
such as the cloth or the linings. In this case the information is sent immediately
to the supplier, whose responsibility it is to solve the problem.
Quality management in the supply chain perspective
Many differences have been found between the traditional sub-network and the
co-ordinated sub-network in quality management practices and procedures,
both at the strategic and the operational level (see Table I).
Regarding the strategic aspects, differences identified include the choice and
evaluation of thread and textile suppliers, the identification of quality
characteristics that are fundamental for competitiveness in the market and the
definition of new product/process solutions in order to meet the final
consumer's requirements.
Regarding the operative aspects, the differences are mainly related to the
choice of the dyeing process, the definition of the ``ready to be made up''
procedure and the definition of procedures for checking quality aspects that are
important to final consumers (i.e colour homogeneity, physical and chemical
parameters, quality points).
What makes it possible to manage the quality process in such a different
way is the level of co-ordination reached within the two sub-networks as a
consequence of the use of different co-ordination mechanisms.
First, contacts between actors are far more frequent and close in the coordinated sub-network. Communication and exchanges of information go well
beyond the dyadic interfaces between contiguous members of the supply
network. As an example, a variety of different supply network actors are
involved in the selection and evaluation of thread and textile suppliers, and the
same is true for the dyeing process. Moreover, the exchange of information at
the interface may be more intense, as in the case of the ``ready to be made up
textiles'' procedure. This allows greater co-ordination between the textile
makers and the menswear division through faster levels of information
Spinners
Traditional sub-network
Co-ordinated sub-network
Dyeing of hanks or threads

(sometimes)
Dyeing of hanks or threads (always)

Definition of the dyeing process, taking account
of the process characteristics jointly required by
the distributor and the menswear division
Frequent visits to menswear division plants and
to weavers in order to check on how their
products are used and the performance
Weavers
Thread suppliers chosen by No dyeing of rolls of cloth

weavers
Frequent visits to menswear division plants in
Dyeing of rolls of cloth
order to check how their products are used and
(sometimes)
the performance
Use of both traditional end- 100 per cent use of ``ready to be made up''
process checks and ``ready
procedure for end-process checking
to be made up'' procedure
Marzotto's
menswear
division
Textile suppliers chosen by

tailor
Usually 100 per cent checks
on incoming rolls of cloth
(except those suppliers who
use ``ready to be made up''
procedure)
100 per cent colour
homogeneity checks on
incoming rolls of cloth
using D65 neon lamp
Physical and chemical
checks on incoming textile
samples on the basis of
standard norms
Check on finished garments
from the ``commercial point
of view''
Distributors 100 per cent checks on

Retailers
garments (incoming)
Quality
management
455
Co-operation with the distributor in choosing

thread and textile suppliers
Co-operation with the distributor in choosing the
dyeing process
0.0 per cent checks on incoming rolls of cloth,
due to the use of the ``ready to be made up''
procedure
100 per cent colour homogeneity checks on
incoming rolls of cloth using TL24 neon lamp
Physical and chemical checks on incoming textile
samples on the basis of the distributor's
specifications (design specifications)
Co-operation with the distributor in defining new
product/process solutions in order to meet the
final requirements of the consumer
Check on finished garments from the
``commercial point of view''
Super checks on samples of garments from the
``technical point of view''
Co-operation with the tailor in choosing thread
and textile suppliers
Co-operation with the tailor in choosing the
dyeing process
Definition of procedures for checking colour
homogeneity and physical/chemical parameters
Co-operation with the tailor in defining new
product/process solutions in order to meet the
final consumer requirements
Checks on samples of garments (incoming)
Frequent visits to the tailors' and weavers'
plants and to laboratories where chemical and
physical tests are carried out
Table I.
Comparison of quality
management practices
between the
``traditional'' and the
``co-ordinated'' subnetwork
IJOPM
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exchange and the fact that textile checking systems have been made uniform.
Indeed, the double-check on textiles is still carried out, but only when the
menswear division has not been able to co-ordinate its activities with those of
the textile supplier. In this case, the check on textiles coming in just translates
the ``language'' used to warn of defects into one which will be understood by the
menswear division.
In the co-ordinated sub-network, co-ordination is also achieved by subdividing and integrating the tasks of the different actors in the supply network.
Indeed, the actors downstream use their privileged position to better
understand the needs of the final consumer, and to then translate them into
requirements for the entire network. Actors upstream, who are better versed in
the more technical and operative aspects, are responsible, in their turn, for
putting into practise and monitoring these requirements. For example, the
exchange of information between the distributor and the menswear division in
the co-ordinated sub-network has made it possible to make joint decisions
regarding the modification of some design details of the clothing items
produced, such as the pockets and trouser linings, which in turn makes it
possible to meet the customer requirements passed on by the distributor.
Even hierarchical relations and those of authority are used as a mechanism
of co-ordination: the distributor is the most important customer of the
menswear division and, analogously, the latter is an important customer for the
textile and thread suppliers. Furthermore, it should be emphasised that in the
co-ordinated sub-network, co-ordination has also been achieved by means of
formal meetings, such as frequent visits by the distributor's managers and
inspectors to Marzotto's plants, chemistry/physics laboratories and to the
suppliers and sub-suppliers. Both the textile and the thread suppliers have
often been invited to visit the Marzotto plants and in this way have the chance
to see how their products were used in the production process and how the
products they supplied actually performed.
Moreover, a further co-ordination mechanism that distinguishes the two subnetworks is that of non-permanent inter-firm work groups, made up of
personnel from the distributor and the menswear division, who take decisions
regarding the choice of suppliers, the procedures that should be used in the
chemistry/physics laboratories and which changes could and should be made
to the clothing items on the basis of final customer requirements.
Last, a core aspect that differentiates the two sub-networks concerns the
increasing importance of final consumers and the way in which their needs/
requirements are transformed into requirements for all the members of the
supply network. In this way, the co-ordinated sub-network operates according
to a pull logic, in which each individual actor contributes in an integrated
manner to satisfying the final consumer.
The rationale behind such logic is that the quality of the finished garment
stems directly from the choice of raw materials, i.e. threads and textiles, and
from the fact that the downstream actors in the supply network (i.e. the
garment manufacturers, and above all the distributors/retailers) are in a
privileged position when it comes to discovering customer requirements and
translating them into product characteristics. Thus, for example, in the co-
ordinated sub-network it is fundamental that the garment manufacturer and

the distributor act together when choosing thread and textile suppliers, and
when evaluating and defining the processes and procedures which influence
the quality delivered to the downstream phases.
The impact of such an approach on quality delivered to the final consumer is
tremendous. Thanks to the innovative way of interacting between all the
partners within the supply network, the choice offered in the distributor's sales
outlet is very well focused on the expectations and requirements of the market
segment: each line on sale is the result of a design and quality control process
which has been carried out by a team of technicians supplied by both the
distributor and the tailor.
Conclusions
The two main differences in quality management between the co-ordinated
network and the traditional sub-network are:
(1) The development and use of distinctive practices/procedures, at both the
strategic and the operative level, for managing processes within the
transformation phases of threads into textiles, and lastly into finished
garments.
(2) The development and use of distinctive co-ordination mechanisms for
managing relationships between all the partners.
Indeed, not only are the practices/procedures which regulate relations between
partners decided and evaluated by different actors in the chain (e.g. selection
and evaluation of suppliers of raw materials, procedures for checking the
textiles), but also the definition and application of the procedures involved in
those processes traditionally checked autonomously by individual actors (e.g.
dyeing, checking physical/chemical parameters) are decided upon jointly.
In synthesis, the combined effects of points (1) and (2) are what characterise
co-ordinated quality management practices and procedures within this textile
apparel supply chain.
Applying innovative procedures and establishing new, more frequent and
closer relationships with suppliers and customers in the co-ordinated subnetwork has meant increased investments and higher production costs, both
technological and organisational, for Marzotto. However, the specific
application of quality procedures and the constant attention to quality
parameters at every stage of production within the supply network have
altered the way in which not only Marzotto, but also all the actors in the
network, operate.
In particular, the fact that Marzotto has been able to satisfy the requirements
of its most important customer has allowed it to improve the overall
performance of its own production. The quality of the final garments has been
improved by the introduction of technical-organisational routines for quality
management which, after being initially proposed by the distributor, have now
begun to be used and improved upon by both Marzotto and other members of
the supply network. A large number of such routines, the application of which
Quality
management
457
IJOPM
21,4
458
was initially limited to the co-ordinated sub-network, has been extended to the
whole production, making Marzotto, de facto, more competitive overall.
Indeed, increased feedback from the final customer has enabled Marzotto to
respond better to customer expectations and has led to increased internal
awareness of just how important final consumer satisfaction is for
competitiveness today. Thus, as an experiment, Marzotto decided that when its
garments are sold by other distributors in the traditional sub-network, each
item should be accompanied by a short questionnaire asking for the consumer's
evaluations. This questionnaire aims to improve the firm's knowledge about
the consumer's requirements and expectations, so that Marzotto can see
whether the quality standards it has set are really those that the final consumer
both recognises and appreciates.
In conclusion, this paper contributes to the literature on quality management
and supply chain management by describing and analysing a case in which
quality is managed within a supply network in an innovative way. In this way,
it confirms the point of view of those authors (Hewitt, 1992, 1999; Stewart, 1995;
Bethel and Jayaram, 1997; Cooper, Lambert and Pagh, 1997; GSCF, 2000) who
argue that SCM goes beyond integrated logistics and involves other processes
too such as quality management that add value for final consumers. It has
been seen, in fact, how highly co-ordinated quality management practices/
procedures and continuous monitoring of quality parameters are the ``glue'' that
has allowed the supply network to operate as a ``whole system'' (Christopher,
1992; Davis, 1993; Lee and Ng, 1997). Procedures are elaborated in the light of
the needs of the whole supply chain, with the ideas, suggestions and
experiences of every person being shared and considered. The influence area of
the quality management process described in this case is therefore clearly the
whole supply network (Harland, 1996, 1997; Slack et al., 1998; Handfield and
Nichols, 1999), ranging from the thread suppliers to the final consumers.
The true innovation lies in the way in which each firm participates actively
in the life of the network and in final consumer satisfaction using co-ordination
mechanisms (Grandori and Soda, 1995) such as communication systems and
procedures that are easy to assimilate and transmit, complementary methods
and technologies, and by sharing the same mentality and philosophy of quality
management. Each partner in the chain knows what the final aims are in terms
of the quality demanded by the final user and there are no longer any secrets or
tacit collaboration. The final result is the kind of system where every article of
clothing is the sum of the different operating stages (i.e. spinning, weaving,
making up and distribution) carried out by legally separate firms, the
competitiveness of which on the market is unique (Evans et al., 1993).
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considering it as just a development of the traditional purchasing and supply

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Dyeing of hanks or threads

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