||Quality Management (QM) and Supply Chain Management (SCM) have been considered as two of the most important business strategies. They have become the prerequisite for success and competitive advantage in the global market. Supplier Integration is a subset of supply chain, and supplier relationship is no longer a competition, but competition and cooperation. Integration capabilities between suppliers can be regarded as a competitive advantage. The better supplier integration capabilities, the better supply chain performance. That would further enhance the competitiveness of enterprises.|
This paper explores the relationship between QM practices and Supplier Integration of supply chains. The entire population of suppliers to aerospace industry in Taiwan was surveyed to measure use of QM practices. QM is modeled as a second-order construct reflected by six QM practices (small group problem solving, top management leadership for quality, information and feedback, process management, customer focus, and supplier involvement). The results showed supplier involvement is the only factor which has statistically significant effect on supplier integration.
Our study reflects the underlying fact of the aerospace industry in Taiwan; i.e., it is a manufacturing industry with no design capability. For a manufacturing industry without design capability, supplier involvement is the most important construct for effective supply chain management.