Gilmar Lucio da Silva
São Paulo State University, Campus Jaboticabal, Brazil
E-mail: gilmar.silva@hotmail.com
Gustavo Rondina
São Paulo State University, Campus Jaboticabal, Brazil
E-mail: rondina.gustavo@gmail.com
Paloma Cardoso Figueiredo
São Paulo State University, Campus Jaboticabal, Brazil
E-mail: paloma_figueiredo@gmail.com
Glaucia Prates
São Paulo State University, Campus Jaboticabal, Brazil
E-mail: glaucia@itapeva.unesp.br
Antonio Francisco Savi
São Paulo State University, Campus Jaboticabal, Brazil
E-mail: savi@itapeva.unesp.br
Submission: 22/05/2017
Revision: 08/06/2017
Accept: 30/11/2017
ABSTRACT
This article aims to present the quality and its direct influence
on important characteristics that dominate the Design of the Supply Network,
demonstrating the main aspects involved and the strategy developed to achieve a
better performance. The study is based
on a literature review and the main objective of this systematic review of the
literature was to identify and classify all previous studies that examined some
aspect of network analysis in the context of the supply chain since so far. It
provides a detailed description of the most of the subject and contributes with
a set of findings that capture the current state of art of the topic. Quality
in the supply chain is a new subject and little studied, but it is observed
that its influence is present in all sectors of the economy. The classification
of Supply Chains has been highlighted as a flow of materials and information
that go from suppliers to final customers in the best possible way. With the
development of a management that addresses the Supply Chain in a relevant way,
the organization can achieve benefits that put it in a competitive position in
the market.
Keywords: Quality, Supply
Chain Management, Big Data, Agility, Flexibility, Responsiveness, Resilience.
1. INTRODUCTION
The rapid global development, in internal and
external organizational context, leads to a continuous need to address the
expectations of relevant interested parties.
Therefore, organizations and entities are
permanently facing uncertainty and consequently new and diversified challenges
day by day, suggesting pro-activity needs at the level of implementation
regarding continuous improvements, better performance and innovations of
organizational and operational processes as well as products with good
expectations, sustainable business performance and excellence.
With a structured Supply chain is possible to
achieve the creation of value in organization that depends on the ability to
potentiate the continuous improvement and innovation of products and processes
Sometimes unplanned events occur in the supply chain
network and it might affect the flow of material and components, here comes the
strategy in supply chain management that will addresses the performance
required by costumers.
2. LITERATURE REVIEW
Quality management has become a way to survive in
the manufacturing sector, in fact in every sector, whether service, logistic,
road building, or any other sector, and its importance is widely understood.
Without a system in place to establish procedure, monitor progress, and
evaluate performance, it is nearly impossible to consistently deliver a quality
product to customers or prevent disruption risks (KIRAN, 2017).
Looking to serve customers, some companies have
implemented tools that could help them to manage their supply chain.
Evaluating the implementation of Quality in the
supply chain management in Brazil, most of systems were developed based on in
Total Quality Management, MSSs, Six sigma, ISO 9000 standard, etc..
These systems have been created to avoid or reduce
the day to day problems that supply chain management faces.
One such system is Total Quality Management (TQM)
which, together, Supply Chain Management are two of the important tools that
manufacturing companies use to gain competitive advantage. Quality is an
important factor in adding value to the process in production and delivery of
the products along the supply chain.
One of the key players in the supply chain network
(so important in achieving quality) is the supplier.
As mentioned by Kannan and Tan (2007), investigating
the impact of quality management practices they observed that the quality of
the supplies was directly related to higher level of quality conformance,
reduced variation in quality performance and reduction of production costs and
the certification of these suppliers is very important to achieve the
performance required by consumers.
2.1.
Quality
in Supply Chain Management
Supply chain quality management has been received
significant attention from the researcher in recent years. However, the
knowledge about the effect of a manufacturer´s design and capability of
production is limited in this field (ZHANG et al., 2017), thus further study is
required in this respect.
According Zhang et al. (2017) Supply Chain
Integration is an extension of the coordination of the flow of materials and information
to suppliers and end customers.
The supply chain quality integration is defined as
the degree to which an organization´s internal function and external supply
chain partners strategically and operationally collaborate with each other to
jointly manage inter and external organization quality-related relationship,
communication, processes, etc. with the objective to achieve high level of
quality-related performance at low costs. This integration include internal
supplier and costumer quality integration, capturing both internal and external
supply chain contexts (ZHANG et al., 2017).
To understand each player in this study, each was
defined for better understanding.
2.2.
Definitions
2.2.1. Supply
Chain Management (SCM)
Inquiring about the definition of Supply Chain
Management were found some denominations. The definition adopted here is the
one that Stock and Boyler (2009) suggest.
“SCM is the management of a network of relationships
within a company and between independent organizations and business units that
covers material suppliers, purchasing, production, facilities, logistics,
marketing and related systems that facilitate the direct and inverse flow of
materials, services, finances and information from the producer from the source
to the end costumer with the benefits of adding value, maximizing profitability
through efficient and achieving costumers satisfaction”.
This definition covers a wide range of definitions
that could express the state of art of this sector.
The definition of Supply chain we can assume is: a
relationship between sectors of one company/organization/business unit through
which, in addition to meeting customer needs, value is added to this
organization.
2.2.2. Agility
According Lim, Mak and Zen (2017) and Chan et al.
(2017), Supply Chain Agility is considered the most critical success factor in
our actual competitive market because it brings quick response and short lead
time. It enables the members firms to be more sensitive regarding the market
with capacity to respond rapidly to the changes, being able to synchronize
supply with demand and to achieve shorter cycle times. Another characteristic
is the capability to rapidly realign the network and its operations to meet the
highly dynamic customer requirements.
2.2.3. Flexibility
Strategic flexibility and manufacturing flexibility
are the critical antecedents to supply chain agility. Furthermore, supply chain
agility, strategic flexibility and manufacturing flexibility are key factors in
the company's performance. Flexibility consists of responding to customers'
orders by dynamically adjusting network operations and this is essential for
success. It is agreed that the organization flexibility is one of the most
important factors to achieve superior supply chain agility (CHAIN et al.,
2017).
2.2.4. Responsiveness
In recent years, a considerable number of companies
have adopted responsiveness goals while design their supply chain network.
According to Fattahi, Govindan and Keyvanshokooh (2017) a responsive supply
chain could adapt itself to the consumers’ needs alteration and changes in the
target market.
Responsiveness to customers and market is an
indispensable requirement for all industries, organization or business unities
(CHAIN et al., 2017).
In fact, it is a key factor to avoid delay in the
delivery, and specific in a logistics network, should be considered an
important factor in the design of the distribution system network. A queuing
system is known as the main tools for managing congestion and improving
responsiveness in logistics systems. Many efforts have been made to show the
validity of queuing systems to calculate waiting times and improve network
responsiveness. Therefore, the implementation of queuing systems can be useful
to solve the problems with longer waiting times and the delay in deliveries
(ZHALECHIAN et al., 2017).
2.2.5. Resilience
According Bruijn et al. (2017) resilience is an
ambiguous concept and could be interpreted differently by different persons. We
have five key definitions for resilience to deal with extreme weather events,
and these key definitions can be translated into five practical principles of
resilience to support disaster risk reduction decisions and rules. The
principles are: encourage taking an approach of this system, considering
beyond-design events, assuring that the system can remain working under extreme
events, considering system response / recovery, and including gradual future
changes. Applying these principles in practice will aid in developing
strategies and designing adaptive pathways into the future which will make the
system more resilient to extreme weather events.
In other definition, resilience is the ability to
recover quickly to the same natural state (COLLINS, 2014).
2.2.6. Big
Data
The demand for data analysis is growing day by day
and is necessary to find technologies that could work with this situation, the
huge mass of information generated is very important for some entities
Currently, the volume of this data is doubling every
year, due the historic data that the organizations are storing and the time
that they are storing. Example: Social media provide huge amount of text data
(Facebook has more than 901 million active users generating social interaction
data); Radio-Frequency Identification (RFID) systems generate up to 1,000 times
the data of conventional bar code systems. The variety of this data and
unstructured forms (images, audio, tweets, text messages, server logs and so
on) is huge as well, it came in all types of formats, from a standard
production system or transaction database to OLAP (Online Analytics Processing)
cubes, emails, stock or financial data to a huge non-numerical data.
The Speed of this data is produced and how fast it
must be processed to meet required or demands, is another important aspect.
(MICHALIK; STOFA; ZOLOTOVÁ, 2014).
According Lee (2017); Herschel and Miori, (2017); Michalik,
Stofa and Zolotová (2014), Big Data is a digital phenomenon and technology
paradigm that enables the collection and use of massive amounts of data derived
from both man and machine. This data is characterized in terms of its volume,
variety, velocity, veracity, variability, and its complexity. It allows firms
to rapidly capture, analyze, and exploit information.
Big data is
envisioned as a game changer capable of revolutionizing the way businesses
operate in many industries.
According SAS Company, the importance of Big Data is
what you do with the great volume of data that you have.
Is possible to analyze data from any source to find
answers that allow cost reduction, time reduction, new product development and
optimized offerings and smarter decisions. When you combine big data with
high-powered analytics, you can perform business-related tasks such as:
·
Determine the root
cause of near-real-time faults, problems, and defects;
·
Generate coupons at
the point of sale based on customers' buying habits;
·
Recalculate entire
risk portfolios, in a matter of minutes;
·
Detect fraudulent
behavior before it affects your organization.
One important action that companies need to do is to
prevent risks in the supply chain network, it is critical to the success of the
company.
2.3.
Risks
in Supply Chain Network
In actual days, some companies operating within
highly integrated supply chains are increasingly vulnerable to disruptions
caused by natural and man-made disasters. These disruptions born in recent
events, such as the 2010 devastating earthquake in Haiti that victimized
thousands of people, the 2011 floods in Thailand with economic costs estimated
around US$450bn and the 2013 typhoon in the Philippines that left massive
property destruction. Risks and unpredictable events exist during each stage of
activities necessary to acquire products and services to deliver output to
customers. Unintended or unforeseen disruptions can occur during purchasing,
manufacturing or even delivery, which adversely affect the ability of the
company to attend their customers. The effect of risks and uncertainty must be
anticipated by mitigation efforts aimed at maintaining overall business
continuity (KURVIAWAN et al., 2017)
These events are called by disruption risks.
2.3.1. Disruption
risk
The disruption risk have been studied by
professional and researchers of the area due to their impacts as long
lead-times, stock-outs, inability to meet costumers demand resulting in costs
increase.
Despite these problems, the natural disruptions as
floods, earthquakes, economic crisis and terrorist attacks have received more
attention by the scholars (FATTAHI; GOVINDAN; KEYVANSHOKOOH, 2017).
The first strategic step to avoid this kind of risk
is to identify them and determine all the risks that could happen in the
process, understand the likelihood and extend of the most significant risks and
develop risk mitigation strategies that will guide the management to act
properly (FENG; JUN-QI; DAO-MING, 2010).
2.4.
Strategies
to improve the Quality in Supply Chain
To have a resilient network under disruption events,
some companies use mitigation strategies.
Mitigation strategies are preventive activities
performed before occurrence of a possible disruption, irrespective if it
happens or not. But if and when it occurs contingency strategies are adopted to
reinstate the supply chain to it previous condition (FATTAHI; GOVINDAN;
KEYVANSHOKOOH, 2017).
One of the strategies that companies could use is
the implementation of a radio frequency identification (RFID) system in your
process.
RFID technology holds the promises of
revolutionizing supply chain management by providing automatic real-time Supply
Chain visibility. Great retailers gave RFID impetus by mandating that their top
suppliers tag cases and pallets with RFID in 2005. Wal-Mart subsequently
reported that this reduced out-of-stocks by 21%, achieved up to three times
faster replenishment of out-of-stock orders and reduced manual orders. RFID
adoption also helped Metro Group to realize significant time and labor cost
savings (LEUNG; CHEUNG; CHU, 2014).
Despite the complexity of the supply chain network
model, it specific context depends entirely on its members. In order to succeed
in the market, companies must develop strategies (CHANG; CHIANG; PAI, 2012).
2.5.
Purpose
of the research
The supply chain needs to be able to respond
quickly, organizational flexibility, avoid delays in delivery, and the ability
to recover quickly. The objective of this study is to show how quality directly
influences these items, which are the main principles that structure the supply
chain management..
3. METHODOLOGY
According to Fink (2009), a literary review is a
clear, structured and reproducible research to identify, evaluate and interpret
the existing body of documents evidenced therein. The objectives of a
literature review are generally two:
·
First: summarize
research by identifying patterns, approaches, and recurring issues;
·
Second: identify the
concept of the field for the development of theory.
The literature review process was carried out
following the assumptions of Levy and Ellis (2006), that is, selecting, and
understanding, applying, analyzing, synthesizing and evaluating the literature.
The practice of this activity guarantees a structured and reliable review of
the literature and ensures the objectivity of the research process. (FORMENTINI;
ROMANO, 2016).
The adopted methodology for this work has been the
descriptive bibliographic research. This research project is appropriate to provide
a detailed description of the most important aspects of the subject matter,
taking into account specific points of view and different perspectives (AGIG;
NIEMANN; KOTZÉ, 2016).
In order to address the research questions, a
thorough review was carried out on the literature on the supply chain with the
objective of sustainability about an organization applying knowledge.
To elaborate these research methods, it will use:
·
The articles
contributing significantly in the domain of supply chain resilience were
selected for final review and various issues were identified.
·
The research
methodology it will be characterized as a bibliographic research, since it
explains the problematic approach from theoretical references.
·
The keywords will be
divided into categories: related words about supply chain design; related words
about quality of supply chain network and related words about agility,
flexibility, responsiveness, resilience as the way to improve the chain and the
process;
When the content of the analysis was being prepared,
the purpose was to select the documents and at least answer:
·
In what ways could
the supply chain achieve quality from principles of influence: agility,
flexibility, responsiveness, resilience, and quality?
·
What would be the
ideal design to achieve such influencing principles?
·
How do the market and
the organization behave in the face of such requirements?
The primary goal of this systematic literature
review was to identify and classify all previous studies that examined some
aspect of network analysis in the supply chain context since 2016. Articles on
supply chains were chosen using a knowledge network and several academic
databases commonly used in these surveys were also used including Scopus of
Coordenação de Aperfeiçoamento de Pessoal de Nível Superior – CAPES (from
Brazil), Web of Science, and Google Scholar.
It was used a combination of search keywords:
“network design”, “quality of supply chain network” “network design"
“supply network,” “network structure,” "agility, flexibility, responsiveness,
resilience in supply chain " “network dynamics,” and “network strategy.”
These keywords were chosen because of the relationship each one has with
Quality.
The key reasoning was that the unit of analysis had
to be an organization, firm, or business unit. As a result, did not include
interpersonal network studies. Next, we manually examined the full text of each
of the articles and discarded studies that did not specifically examine some
aspect of SCSs. Lastly, we excluded conference proceedings, working papers, and
theses in concordance to previous literature reviews (GUNASEKARAN; NGAI, 2005).
It was classified studies according to their primary
research focus, as it relates to the three structural and behavioral aspects of
interfirms relationships that affect Supply Chain design and performance of
organization:
·
The Supply Chain
Design dynamics: system behavior;
·
The Supply Chain
Design structure: system behavior;
·
The Supply Chain
Design strategy: system policy and control;
The coding process consisted of both authors
independently assessing and assigning primary research method and research
theme to each article. Differences were resolved through discussion (BELLAMY;
BASOLE, 2012).
The main challenge is how to address the different
and major weaknesses and differentiations of networks and their analysis on
this. The literature can be classified based on the operational processes and
the supply chain of agricultural products, processing, manufacturing, planning,
control, design, accounting, perishable logistics, chain management, safety and
food quality, among others. Based on measures of performance, quality and
service flexibility, these indicators can be perceived (MAHAJAN; GARG; SHARMA,
2017).
4. CONCLUSION AND RECOMMENDATION
The objective of this study is to show how the
quality influences directly in this items that are the main principles that
structures a supply chain management. After discussion about these principles
it arrived that the Supply Chain is a strategic point in the life of any organization
that thinks about the future. There is no way to eliminate good management of
the supply chain of organization that seeks the satisfaction of the clients in
full way as objective, and also, one can generate competitive strategies with
the adoption of the chain management.
With chain management companies can achieve the
much-desired value added in their services and products, as well as directly
influence the quality of these services. Also in this sense, the chain provides
improvements and advantages in the processes and products, as well as avoids
the rupture with the proper mitigation of risk.
Quality in the supply chain is a new subject and
little studied, but it is observed that its influence is present in all sectors
of the economy. Was highlighted the classification of Supply Chains as a flow
of materials and information that go from suppliers to end customers in the
best possible way.
In order to achieve quality in the Supply Chain, it
is necessary to develop a series of attributes, tools and strategies in the
organization.
With the development of a management that addresses
the Supply Chain in a relevant way, the organization can achieve benefits that
put it in a competitive position in the market. The agility in the chain
enables the service of dynamic customers and gives a rapid response to the
changes, synchronizing supply and demand with the purpose of generating shorter
cycles.
Strategic flexibility is a key part of achieving the
agility mentioned above, although production flexibility is essential in the
eyes of the Supply Chain. Not only flexibility and agility as a focus in the
search for the quality of the chain suffice, but rather the importance of
receptivity as the organization's responsiveness to the client stands out.
Supply Chain management is efficient in the sense of adding value to the
service or product and also in processes, maximizing profitability and
achieving customer satisfaction with greater quality and agility.
The mitigation of the risk of rupture is something
seriously treated in the chains, because with natural disasters companies must
have plans to decrease or avoid the breakdown of the supply of their products
or services to the customers. To avoid the risk of supply disruption caused by
unplanned events and to prevent it from affecting the flow of materials, the
organization must have resilience in order to develop rapid recovery capacity
for the natural state.
Organizations can use multiple systems to manage
their chains, avoiding or reducing the problem journey. The systems cited in
the work, MSSs, Six Sigma, ISO 9000 and T.Q.M enable the reduction of variation
in quality performance, such as higher level of conformity and reduction in
production costs.
As recommendation to improve this job is suggested
to researchers a deep investigation in possible risks (not mentioned here) that
Supply Chain could face and how to mitigate that, because as the technology is
perfecting every day, new types of risks could emerging.
5. ACKNOWLEDGEMENT
Special
thanks to UNESP – Universidade Estadual Paulista Julio de Mesquita Filho -
Campus Jaboticabal - São Paulo - BRAZIL, to support this job and to all the
coordination team of Professional Master Degree in Administration for the
orientation and conduction.
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