isfaction. While there are many definitions of quality, all share the com-
mon assumption that quality is determined by the customer (Cortada,
1993), and hence should be defined from a consumer-oriented perspec-
tive. Quality definitions of this kind include the following aspects:
- continuous improvement (Deming, 1986)
- fitness for use (Juran, 1989)
- conformance to requirements (Crosby, 1979)
- a product that is most economical, most useful and always satis-
factory to the consumer (Ishikawa, 1985)
In recent years, many companies have adopted Total Quality Man-
agement (TQM) programs designed to constantly improve the quality of
their products, services and marketing processes. TQM relates to all the
processes in the organization that contribute directly or indirectly to de-
livering quality as defined by the consumer (Ross, 1993). The control
component (quality assurance) has shifted from product inspection to
process control. As a result, the processes in the various divisions or
links of a company and the intermediate products and services are con-
tinuously improved in quality. It concerns the acceptance of TQM as a
way of company life, by including all functions of the business and its
integration into the product life cycle such as design, planning, control,
production, distribution and field service.
TQM in each link and company of the market chain, and the coordi-
nation of these links, is called Integrated Quality Management (IQM).
The concept of IQM goes beyond the individual company’s quality man-
agement. It is referred to as “integrated” since the TQM concepts of in-
dividual companies in the chain are integrated in order to make them fit
each other. The knowledge about and control of the production process
and the coordination of all links is essential for a good quality and im-
proved performance of the chain. It means that several of the above de-
fined concepts are included in the concept of IQM, namely, TQM, SCM
and ECR. The overall objective is to add value to the entire chain and
to realize competitive advantages and a better performance of the entire
chain.
Drivers of Competitive Advantage
Trends or drivers create major economic opportunities for companies
that demonstrate the ability to manage the system components to gain
competitive advantage (Downey, 1996). As indicated in Figure 13.1,