Free-Pass Model to Manage Quality Relationships With Suppliers: An Italian Case Study

Abstract

In order to be competitive in today's challenging business environment, manufacturing companies must have the ability to effectively integrate internal functions within a company and effectively link them to the external operations of suppliers and supply chain members. This could be done thanks to the implementation of an effective Supply Chain Management System. The aim of the research is to contribute to the literature panorama on Lean SupplyChain Management through the analysis of a case study of Alpha, Italian company in the arm industry, which has developed a new model called "Free-Pass", and to give a useful, realistic tool, expendable by companies that want to open up to Lean Supply Chain. A qualitative approach has been chosen, based on a longitudinal, single case study; a semi-structured interview has been carried out per year, with the company's Quality Manager from 2009, the year in which the "Free-Pass" model has been implemented, until 2016. Relevant secondary data were also used such as company reports, web site, and performance quantitative data. The implementation of the Free-Pass model across the company leads to a great change, both in terms of the transformation of the production process in a process flow "pulled", both at the organizational level, with the reduction of hierarchical levels, the process orientation, cross-functional teams, the streamlining of functions, and above all, the involvement of suppliers. This implied a radical change in thinking from management and from all the staff and a true "cultural revolution" for the company itself and for its suppliers, but it bought to both financial and organizational benefits. In conclusion the research has shown the importance of implementing quality relationships with suppliers based on trust and cooperation in order to achieve mutual benefits. The value of the research is given by the definition of a new model of Lean Supply Chain as an important tool of operation management which is expendable by companies.