There are eight quality management principles within the ISO9000 sta

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There are eight quality management principles within the

ISO9000 standard. Briefly explain the impact of ISO9000

quality standards on the supply chain.

Solution

The impact of supply chain relationship

Firms seeking to improve their performance are

increasingly concerned about the

performance of other firms upstream in their supply chain

what is justified by the fact that

unsatisfactory quality performance records of suppliers

could degrade the reputation of

downstream customers who buy their products (Delmas

and Montiel, 2009). Actually, a high

level of involvement between firm and suppliers is an

important characteristic of many

successful businesses since more than half the value of a

firm?s product is purchased from

suppliers (Levine, 1995). In the same vein, Baiman et al.

(2000) argue that the quality of a

firm?s product depends not only on the firm?s actions but

those of its suppliers. Additionally,

consumers? beliefs about firm?s quality are updated upon

observing firms? decision to form a

quality partnership with its suppliers (Costa and

Vasconcelos, 2010).

It is argued that a supply chain network can be more

effective than a firm at the generation,

transfer and recombination of knowledge since there is

greater diversity of knowledge within

a network of firms than in a firm (Dyer and Nobeoka,

2000). Hence, being certified is a

positive signal concerning quality improvement (Terlaak

and King, 2006), and having a

supplier as a certified firm amplifies this positive signal.

Therefore, the firm?s objective is to establish a good

relationship with its suppliers in order to

assure continuous improvement of its performance.

Supplier quality management must

become an integral part of achieving consistent total

product quality. For this reason, ISO

9000 has become an international standard that serves as

a key selection criterion for supplier

selection (Lo et al., 2008). Moreover, preferential

suppliers of large firms are often

determined on the basis of a consistent supply of quality

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There are eight quality management principles within the ISO9000 standard. Briefly explain the impact of ISO9000 quality standards on the supply chain. Solution The impact of supply chain relationship Firms seeking to improve their performance are increasingly concerned about the performance of other firms upstream in their supply chain what is justified by the fact that unsatisfactory quality performance records of suppliers could degrade the reputation of downstream customers who buy their products (Delmas and Montiel, 2009). Actually, a high level of involvement between firm and suppliers is an important characteristic of many successful businesses since more than half the value of a firm?s product is purchased from suppliers (Levine, 1995). In the same vein, Baiman et al. (2000) argue that the quality of a firm?s product depends not only on the firm?s actions but those of its sup ...
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