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Strategic and operative choices in a textile-apparel network

Department of Management and Engineering, University of Padova, Vicenza, Italy
Keywords Supply-chain management, Quality management, Textile, Industry Abstract Supply chain management (SCM) is conceived by academics and practitioners as either an extension of logistics or an all-encompassing approach to business integration. From the authors' point of view, SCM involves not only logistic activities but also other processes such as quality management. This paper seeks to understand how quality can be managed using a supply chain perspective and what the operative and strategic consequences are for both the individual companies and the whole supply network. It reports a case study conducted on Marzotto, an important Italian textile and apparel company, and its supply chain relationships. The study compares the quality practices in the two different kinds of supply network of which Marzotto is the focal firm. One is managed using a traditional customer-supplier approach and the other a broader and more co-ordinated perspective. In the latter case, it was found that the whole supply network could improve its ability to meet the expectations of the final consumer in terms of quality through the joint definition and co-management of quality practices/procedures.

Quality management in a supply chain perspective

Pietro Romano and Andrea Vinelli

International Journal of Operations & Production Management, Vol. 21 No. 4, 2001, pp. 446-460. # MCB University Press, 0144-3577

Introudction ``Supply chain management'' (SCM) and other similar terms such as ``network sourcing'', ``supply pipeline management'', ``value chain management'', and ``value stream management'' have, in recent years, been receiving increasing attention from academics, consultants and operational managers (Scott and Westbrook, 1991; Saunders, 1995; Cooper et al., 1997; Tan et al., 1998; Croom et al., 2000). Such terms are used to refer to the integrated management of a network of entities, that starts with the suppliers' suppliers and ends with the customers' customers, for the production and delivery of goods and services to the final consumers (Lee and Ng, 1997). According to this approach, companies do not seek to achieve cost reductions or profit improvements at the expense of their supply chain partners, but rather seek to make the supply chain more competitive as a whole. Although SCM is a frequently encountered acronym these days, supply chains have not yet been well understood. Many authors still tend to consider SCM as being the same as integrated logistics management, and focus on inventory reduction both within and across firms in the supply chain (Jones and Riley, 1985; Davis, 1993; van Hoek, 1998; Boyson et al., 1999; Naylor et al., 1999). On the other hand, many authors use the term ``supply chain management'' to mean either the management of the supplier network (or upstream network) or as a synonym of integration with suppliers, thus

considering it as just a development of the traditional purchasing and supply management activities (Hines, 1994; Macbeth and Ferguson, 1994; Lamming, 1996; Banfield, 1999). A debate has been developing in literature about what SCM really is and about the ways in which it differs from integrated logistic management, purchasing and supply management, materials management, and so on. Slack et al. (1998) suggest that what distinguishes such different terms/practices is the scope of the supply network they refer to (Figure 1). According to the authors, SCM has developed into a concept with a broad span of concern and a holistic approach to managing across company boundaries. In other words, purchasing and supply, as well as physical distribution, relate to only one part of the whole supply network, upstream and downstream respectively. Logistic and material management take in larger parts of the supply network, while SCM includes the whole network. According to other authors (Hewitt, 1992, 1999; Stewart, 1995; Bechtel and Jayaram, 1997; Cooper et al., 1997a; GSCF, 2000), what distinguishes SCM from the terms/practices highlighted in Figure 1 is not just the scope, but also the processes/activities it involves. Cooper et al. (1997a), for example, suggest that SCM goes beyond integrated logistics because it aims to integrate all the business processes, from end users to original suppliers, which provide products, services and information that add value for the customers. The Global Supply Chain Forum, a group of international companies and a team of academic researchers, states that ``successful SCM requires a change from managing individual functions to integrating activities into key supply chain

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Figure 1. Some of the terms used to describe the management of different parts of the supply network

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processes'' (GSCF, 2000). From this point of view, SCM involves not only logistic activities (e.g. inventory management, transportation, warehousing, order processing, etc.) even if extended to the whole supply network but also other processes (e.g. customer relationship management, demand management, order fulfilment, procurement, product development and commercialisation, etc). In this context, this paper aims to highlight how even quality management could be an important process which characterises SCM. Given this objective, this study tries to explain how quality can be managed from a supply chain perspective and what the operative and strategic choices and consequences are for the single companies and the whole supply chain. This problem has been investigated by comparing quality practices in two different types of supply network with the same focal firm: one managed using a ``traditional'' customer-supplier approach and the other from a broader ``coordinated'' perspective. This analysis is based on the case study of a textile and apparel company and its relationships with both upstream and downstream supply network. Quality in the textile apparel chain The high quality of both products and services at each level of the supply network has been recognised as an essential part of successful SCM (Johnson and Wood, 1996; Coyle et al., 1996; Choi and Rungtusanatham, 1999). Improving the quality of all supply chain processes leads to cost reductions, improved resource utilisation and improved process efficiency (Beamon and Ware, 1998). Several research studies have investigated how supplier-customer relationships can affect the quality of both products/services and processes. These studies, however, focused on the single company or on its immediate suppliers and customers (Ebrahimpour and Johnson, 1992; Richardson, 1993; Powell, 1995; Tan et al., 1998) and very few studies have considered quality management from an SCM perspective (Forker et al., 1997; Choi and Rungtusanatham, 1999). Indeed, in terms of product and process quality, several advantages can be gained from managing the whole flow of materials and information between customers' customers and suppliers' suppliers. Furthermore, the quality level delivered to the final customer is the result of the quality management practices of each link in the supply chain, thus each actor is responsible for the final result. This issue is particularly relevant in the textile apparel industry. This is a sector where quality is one of the key competitive factors, and current competition does not only concern the individual firm but, rather, involves the entire supply chain (Evans et al., 1993; Forza et al., 2000). Indeed, the quality of the final product that reaches the customer is clearly the result of a chain of successive, inter-linked phases: spinning, weaving, apparel and distribution. In the new competitive situation that has been developing within the sector, quality can no longer be considered the preserve of high fashion or expensive clothing, but must be a feature of all market segments and meet the specific requirements and tastes of all types of customers (Forza and Vinelli, 1996; Itex, 1997). Furthermore, quality cannot be restricted to the area of perceived

quality, but must also take even more operational aspects into account. For example, design should not only consider the style but also the specifications of the finished product which must, in itself, be the reference point when checking on quality during production. Likewise, requirements for supplier quality assessment, raw materials, in-process material quality control and quality procedures must also be defined. All these aspects are particularly important in the sector which produces classic menswear, because it is the most sensitive to questions of product quality. Indeed, in this sector the problems of fashion/style are less important than in the parallel sector for women, but the accuracy and quality of the tailoring (i.e. clothing items are almost entirely hand made), the wearability/ practicality (i.e how the article of clothing feels when it is on, the right sizing etc.) and the longevity and resistance of the textiles used are, perhaps, the most important. The quality of the details, such as the accuracy of the stitching (correct distances, no ruffling or pleating, etc.), the characteristics of the materials used for linings, the extent to which the cloth stretches or maintains its shape (suitability of the model for the customer's physiology, tailoring to fit the shoulder blade, etc.), the quality and perfection of the garment's final pressing (cfr. wearability) and the reproducibility of colours (shades), must also be guaranteed. Research approach This study is based on data and information gathered directly by the authors during an in-depth case study carried out within the Marzotto Group and including its relationship with both upstream and downstream supply network members. The Marzotto Group is one of the most important Italian textile and apparel manufacturers. In 1999, the overall group turnover was 1,400 million Euro and apparel turnover was 280 million Euro (58 per cent exported). In particular, the case study analysed the quality management process within Marzotto's menswear division (1999 turnover around 110 million Euro, 50 per cent exported) and its supply network. Figure 2 shows the value tree of Marzotto's menswear division. The value tree is an image that evokes the supply network analogy: the trunk represents the focal firm, the branches represent the suppliers, the roots represent the customers, and the thickness of the branch/root indicates the degree of partnership present in each linkage (Cooper et al., 1997b). The supply network, for which Marzotto's menswear division is the focal firm, can be divided into two sub-networks. In the first type of sub-network, Marzotto's menswear division copes with suppliers and customers in a traditional way to manage garment production, interacting upstream with both the textile suppliers and the sub-suppliers for external production, and downstream with the distribution chains. In the second type of sub-network, a different perspective has been adopted. Here, Marzotto has established a partnership relationship with its largest customer (about 15 per cent of overall volume, equal to about 40,000 garments per year), an important international distribution chain. This relationship envisages channel co-ordination throughout the whole supply chain (i.e. suppliers of thread and textiles).

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Figure 2. The value tree of Marzotto's menswear division

We refer to the first type of sub-network as ``traditional'' and to the second type as ``co-ordinated''. Co-ordination relates to the use of the mechanisms employed to sustain inter-firm co-operation: communication/decision/negotiation mechanisms, social co-ordination and control, integration and link-pin roles/ units, common staff, hierarchy/authority relations, planning and control systems, incentive systems, selection systems, information systems, and public support and infrastructure (Grandori and Soda, 1995). In order to highlight how quality management could be an important process which characterises SCM, the quality management practices of the two types of sub-network in which Marzotto's menswear division is involved are described and compared. In particular, the research intends to explore whether there are any differences in terms of quality management practices and procedures within the two sub-networks: (1) At the strategic level: evaluation and choice of suppliers, critical factors in determining competitiveness in the market, innovations in products/ processes in order to meet final consumer requirements, etc.

(2) At the operative level: definition and choice of specific manufacturing processes, procedures for checking, inspections and quality controls, identification of parameters that need to be monitored, use of feedback from quality control activities, etc. The study seeks to analyse such strategic and operative choices in terms of consequences for the single companies and the whole supply network. Case description This section describes some practices and procedures for quality management implemented in the traditional sub-network and in the co-ordinated one. Choice and evaluation of thread and textile suppliers In the co-ordinated sub-network, Marzotto's menswear division and the distributor act jointly in choosing and evaluating thread and textile suppliers. It is usually the distributor who suggests to Marzotto the names of the cloth and lining producers who could be contacted, and then Marzotto itself adds further names to the list. The final choice is supported by a supplier rating sheet that evaluates both the product (quality and price) and the supplier company (dependability, commitment to a long-term relationship and to an inter-firm work group, etc.). Moreover, every second week a team of five to six distribution managers visits Marzotto's factories and workshops in order to check on and evaluate not only the production but also the threads and textiles being used in the firm. In the traditional sub-network, on the other hand, Marzotto is autonomous in the choice and evaluation of its textile suppliers, and the latter are free to choose and evaluate their thread suppliers. Choice of the dyeing process One fundamental requirement for all textiles used in men's suits is that there should be ``no shading'', i.e. the colour should not vary at all and should respect pre-set standards. In the co-ordinated sub-network, a perfect, homogeneous shading of the cloth is a factor of strategic differentiation in determining competitiveness in the market segment served by the distributor. In order to meet final consumer quality requirements, Marzotto and its major customer decided jointly to stop using the process in which the weaver dyes rolls of cloth. They chose a different process in which the spinner dyes either the threads or the hanks. The preferred process moves the dyeing phase ``back'' from weaving to spinning and is more costly and slower, but it does ensure colour homogeneity, which is important to the final consumer. In the traditional sub-network, Marzotto does not interfere with decisions made on the dyeing processes adopted by its textile suppliers. In this case, therefore, the process of dyeing hanks/threads as well as cloth is used. Definition of the ``ready to be made up'' procedure for checking textiles Regarding the procedures for checking textiles, Marzotto decided jointly with selected textile suppliers to eliminate double-checks on rolls of cloth (by

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weavers in output and by Marzotto in input) and to buy textiles that were ``ready to be made up'' i.e which did not need further checking before being sent for processing. Indeed, in the packing list which is attached to the consignment of materials that are physically sent, the supplier not only states the length and width of the material but also notes any defects that there might be, and specifies where the defects are, their gravity (according to a taxonomy of defects previously defined together with Marzotto), and periodically emits a test certificate for Marzotto. During the past year this procedure has made it possible to cut the checking costs and has noticeably raised the level of service (i.e. there has been a large drop in the number of returned textiles). Today this procedure, first introduced in the co-ordinated sub-network, is fully used in the co-ordinated sub-network and, to some extent, also in the traditional subnetwork. Definition of the procedures for checking quality aspects that are important to the final consumers In the co-ordinated sub-network, Marzotto's menswear division and the distributor act jointly to define three procedures for checking some quality aspects that are very important to final consumers: (1) Colour homogeneity. (2) Physical parameters (reaction to water cleaning, dry cleaning, ironing, perspiration). (3) Chemical parameters (pollution loading, level of free formaldehyde). As highlighted above, colour homogeneity is a fundamental requirement for all textiles used in men's suits. In the co-ordinated sub-network the distributor, after having carried out various studies, advised Marzotto to change the traditional procedure used to check on colour constancy based on a D65 neon lamp and use a TL24 neon lamp instead, which is considered to be more reliable and effective. One consequence of the use of all these new processes and procedures for managing quality in the supply chain, from spinning through to the finished garment, is that a customer can buy a classic model of jacket in Hong Kong and then, two years later, buy the trousers in London and be sure that not only all the other details but also the colour shade of the two garments will be exactly the same. Regarding the physical properties of the cloth, the fastness of the dye, its reaction to sweating and water, machine washing and dry cleaning, the effects of sunlight, dry and steam ironing, etc., are all checked. Other tests concern: piling, resistance to tearing; stitch/seam evenness and stability of size. In recent years the general public has become much more aware of the problems of environmental pollution and the use of eco-compatible chemical products has become one of the ways of evaluating the quality level of a product. A product parameter, termed ``pollution loading'', is therefore constantly monitored and kept within pre-agreed limits. Although all these physical and chemical tests are used in both the subnetworks, textiles are checked in the traditional sub-network by the garment

manufacturer, who uses standard laboratory procedures laid down in the IWS (for wool) and UNI norms. In the co-ordinated network, however, many tests have been ``personalised'' at the request of the distributor in order to meet the specific requirements of and to fulfil the specific criteria for a garment's success in each sales channel. Many of the tests, such as dry cleaning, water 378C, perspiration, rubbing and light are, obviously, still carried out in the garment manufacturer's laboratories, but they have been specially developed by the distributor and are markedly more selective, specific and precise than the UNI tests, as far as measurements and evaluations are concerned. A very important test required by the distributor in the co-ordinated subnetwork, for example, is the one which measures the level of free formaldehyde in linings. Formaldehyde is a chemical compound that is used during the finishing stages of both textiles and lining materials. Formaldehyde tends to evaporate over time but is very harmful for health as it can cause digestive tract problems, such as ulcers, or, in more serious cases, cancer. Initially, Marzotto only used to carry out the test for free formaldehyde on garments it produced within the co-ordinated sub-network, but after a period it autonomously decided to extend this check to all the produced garments. Definition of new product/process solutions in order to meet final consumer requirements In the co-ordinated sub-network, Marzotto's menswear division and the distributor act jointly to define new product/process solutions in order to meet final consumer requirements. For example, on the basis of some consumers' suggestions, a new innovative shape for pockets, designed to stop small change falling out when the consumer is seated, was put into production. Another example is an entire batch of trousers that did not pass the final check because the lining of some pairs had not been pressed well at knee height and could have proved uncomfortable for the final consumer. Personalisation of the service to the final consumer has reached the point where the consumer should he wish to can take the suit home to try it on better before purchasing. Each suit is also guaranteed even after it has been sold. Should defects or other problems come to light later (for example if the stitching breaks on an inner lining) the consumer can take the suit back to the distributor's shop, from where it is sent back to Marzotto, who carries out the necessary repairs. On the contrary, no specific innovative solutions were found within the traditional sub-network. Definition of the ``super check'' procedure for checking the garments In the co-ordinated sub-network, Marzotto and the distributor decided to change the procedures traditionally used to check garments by adding a ``super check'' on the final products. The traditional test consists of a rapid check in order to detect visible defects (such as holes, marks, loose threads and creases) and evaluates the garments from a ``commercial point of view'' or ``through the eyes of the final customer'' (i.e. the garment should be well presented and look good/clean, which means that it could attract at first sight). On the other hand,

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the super check is more detailed and precise, and evaluates a number of important quality points for classic menswear from a ``technical point of view''. At the start of each season, in fact, the designer determines what the key quality requirements should be for the new collection. This process defines the ``important quality points'' that a garment must have and which each phase of production, cutting out, sewing up and pressing, must respect. During the super check, the specialised checkers must ensure that these important quality points have been respected. The super check is carried out on samples of final garments by means of quality charts containing the list of the parts that need to be checked, as well as the detailed checking instructions/pictures for each part. Experience has shown that some garments which passed the traditional checks did not pass the super check. By highlighting the technical defects, the super check reveals itself as a means and an opportunity for the firm to learn from its ``mistakes'', thus improving operational processes. Quality control techniques such as Pareto diagrams, cause/effect diagrams and check cards are extensively used in the super-check phase to identify the reasons for any defect, not only within the menswear division but also across the whole supply network. For example, a defect may be the result of defective raw materials, such as the cloth or the linings. In this case the information is sent immediately to the supplier, whose responsibility it is to solve the problem. Quality management in the supply chain perspective Many differences have been found between the traditional sub-network and the co-ordinated sub-network in quality management practices and procedures, both at the strategic and the operational level (see Table I). Regarding the strategic aspects, differences identified include the choice and evaluation of thread and textile suppliers, the identification of quality characteristics that are fundamental for competitiveness in the market and the definition of new product/process solutions in order to meet the final consumer's requirements. Regarding the operative aspects, the differences are mainly related to the choice of the dyeing process, the definition of the ``ready to be made up'' procedure and the definition of procedures for checking quality aspects that are important to final consumers (i.e colour homogeneity, physical and chemical parameters, quality points). What makes it possible to manage the quality process in such a different way is the level of co-ordination reached within the two sub-networks as a consequence of the use of different co-ordination mechanisms. First, contacts between actors are far more frequent and close in the coordinated sub-network. Communication and exchanges of information go well beyond the dyadic interfaces between contiguous members of the supply network. As an example, a variety of different supply network actors are involved in the selection and evaluation of thread and textile suppliers, and the same is true for the dyeing process. Moreover, the exchange of information at the interface may be more intense, as in the case of the ``ready to be made up textiles'' procedure. This allows greater co-ordination between the textile makers and the menswear division through faster levels of information

Traditional sub-network Spinners Dyeing of hanks or threads (sometimes)

Co-ordinated sub-network Dyeing of hanks or threads (always) Definition of the dyeing process, taking account of the process characteristics jointly required by the distributor and the menswear division Frequent visits to menswear division plants and to weavers in order to check on how their products are used and the performance

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Weavers

Thread suppliers chosen by No dyeing of rolls of cloth weavers Frequent visits to menswear division plants in Dyeing of rolls of cloth order to check how their products are used and (sometimes) the performance Use of both traditional end- 100 per cent use of ``ready to be made up'' process checks and ``ready procedure for end-process checking to be made up'' procedure Textile suppliers chosen by tailor Usually 100 per cent checks on incoming rolls of cloth (except those suppliers who use ``ready to be made up'' procedure) 100 per cent colour homogeneity checks on incoming rolls of cloth using D65 neon lamp Physical and chemical checks on incoming textile samples on the basis of standard norms Check on finished garments from the ``commercial point of view'' Co-operation with the distributor in choosing thread and textile suppliers Co-operation with the distributor in choosing the dyeing process 0.0 per cent checks on incoming rolls of cloth, due to the use of the ``ready to be made up'' procedure 100 per cent colour homogeneity checks on incoming rolls of cloth using TL24 neon lamp Physical and chemical checks on incoming textile samples on the basis of the distributor's specifications (design specifications) Co-operation with the distributor in defining new product/process solutions in order to meet the final requirements of the consumer Check on finished garments from the ``commercial point of view'' Super checks on samples of garments from the ``technical point of view'' Co-operation with the tailor in choosing thread and textile suppliers Co-operation with the tailor in choosing the dyeing process Definition of procedures for checking colour homogeneity and physical/chemical parameters Co-operation with the tailor in defining new product/process solutions in order to meet the final consumer requirements Checks on samples of garments (incoming) Frequent visits to the tailors' and weavers' plants and to laboratories where chemical and physical tests are carried out

Marzotto's menswear division

Distributors 100 per cent checks on Retailers garments (incoming)

Table I. Comparison of quality management practices between the ``traditional'' and the ``co-ordinated'' subnetwork

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exchange and the fact that textile checking systems have been made uniform. Indeed, the double-check on textiles is still carried out, but only when the menswear division has not been able to co-ordinate its activities with those of the textile supplier. In this case, the check on textiles coming in just translates the ``language'' used to warn of defects into one which will be understood by the menswear division. In the co-ordinated sub-network, co-ordination is also achieved by subdividing and integrating the tasks of the different actors in the supply network. Indeed, the actors downstream use their privileged position to better understand the needs of the final consumer, and to then translate them into requirements for the entire network. Actors upstream, who are better versed in the more technical and operative aspects, are responsible, in their turn, for putting into practise and monitoring these requirements. For example, the exchange of information between the distributor and the menswear division in the co-ordinated sub-network has made it possible to make joint decisions regarding the modification of some design details of the clothing items produced, such as the pockets and trouser linings, which in turn makes it possible to meet the customer requirements passed on by the distributor. Even hierarchical relations and those of authority are used as a mechanism of co-ordination: the distributor is the most important customer of the menswear division and, analogously, the latter is an important customer for the textile and thread suppliers. Furthermore, it should be emphasised that in the co-ordinated sub-network, co-ordination has also been achieved by means of formal meetings, such as frequent visits by the distributor's managers and inspectors to Marzotto's plants, chemistry/physics laboratories and to the suppliers and sub-suppliers. Both the textile and the thread suppliers have often been invited to visit the Marzotto plants and in this way have the chance to see how their products were used in the production process and how the products they supplied actually performed. Moreover, a further co-ordination mechanism that distinguishes the two subnetworks is that of non-permanent inter-firm work groups, made up of personnel from the distributor and the menswear division, who take decisions regarding the choice of suppliers, the procedures that should be used in the chemistry/physics laboratories and which changes could and should be made to the clothing items on the basis of final customer requirements. Last, a core aspect that differentiates the two sub-networks concerns the increasing importance of final consumers and the way in which their needs/ requirements are transformed into requirements for all the members of the supply network. In this way, the co-ordinated sub-network operates according to a pull logic, in which each individual actor contributes in an integrated manner to satisfying the final consumer. The rationale behind such logic is that the quality of the finished garment stems directly from the choice of raw materials, i.e. threads and textiles, and from the fact that the downstream actors in the supply network (i.e. the garment manufacturers, and above all the distributors/retailers) are in a privileged position when it comes to discovering customer requirements and translating them into product characteristics. Thus, for example, in the co-

ordinated sub-network it is fundamental that the garment manufacturer and the distributor act together when choosing thread and textile suppliers, and when evaluating and defining the processes and procedures which influence the quality delivered to the downstream phases. The impact of such an approach on quality delivered to the final consumer is tremendous. Thanks to the innovative way of interacting between all the partners within the supply network, the choice offered in the distributor's sales outlet is very well focused on the expectations and requirements of the market segment: each line on sale is the result of a design and quality control process which has been carried out by a team of technicians supplied by both the distributor and the tailor. Conclusions The two main differences in quality management between the co-ordinated network and the traditional sub-network are: (1) The development and use of distinctive practices/procedures, at both the strategic and the operative level, for managing processes within the transformation phases of threads into textiles, and lastly into finished garments. (2) The development and use of distinctive co-ordination mechanisms for managing relationships between all the partners. Indeed, not only are the practices/procedures which regulate relations between partners decided and evaluated by different actors in the chain (e.g. selection and evaluation of suppliers of raw materials, procedures for checking the textiles), but also the definition and application of the procedures involved in those processes traditionally checked autonomously by individual actors (e.g. dyeing, checking physical/chemical parameters) are decided upon jointly. In synthesis, the combined effects of points (1) and (2) are what characterise co-ordinated quality management practices and procedures within this textile apparel supply chain. Applying innovative procedures and establishing new, more frequent and closer relationships with suppliers and customers in the co-ordinated subnetwork has meant increased investments and higher production costs, both technological and organisational, for Marzotto. However, the specific application of quality procedures and the constant attention to quality parameters at every stage of production within the supply network have altered the way in which not only Marzotto, but also all the actors in the network, operate. In particular, the fact that Marzotto has been able to satisfy the requirements of its most important customer has allowed it to improve the overall performance of its own production. The quality of the final garments has been improved by the introduction of technical-organisational routines for quality management which, after being initially proposed by the distributor, have now begun to be used and improved upon by both Marzotto and other members of the supply network. A large number of such routines, the application of which

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was initially limited to the co-ordinated sub-network, has been extended to the whole production, making Marzotto, de facto, more competitive overall. Indeed, increased feedback from the final customer has enabled Marzotto to respond better to customer expectations and has led to increased internal awareness of just how important final consumer satisfaction is for competitiveness today. Thus, as an experiment, Marzotto decided that when its garments are sold by other distributors in the traditional sub-network, each item should be accompanied by a short questionnaire asking for the consumer's evaluations. This questionnaire aims to improve the firm's knowledge about the consumer's requirements and expectations, so that Marzotto can see whether the quality standards it has set are really those that the final consumer both recognises and appreciates. In conclusion, this paper contributes to the literature on quality management and supply chain management by describing and analysing a case in which quality is managed within a supply network in an innovative way. In this way, it confirms the point of view of those authors (Hewitt, 1992, 1999; Stewart, 1995; Bethel and Jayaram, 1997; Cooper, Lambert and Pagh, 1997; GSCF, 2000) who argue that SCM goes beyond integrated logistics and involves other processes too such as quality management that add value for final consumers. It has been seen, in fact, how highly co-ordinated quality management practices/ procedures and continuous monitoring of quality parameters are the ``glue'' that has allowed the supply network to operate as a ``whole system'' (Christopher, 1992; Davis, 1993; Lee and Ng, 1997). Procedures are elaborated in the light of the needs of the whole supply chain, with the ideas, suggestions and experiences of every person being shared and considered. The influence area of the quality management process described in this case is therefore clearly the whole supply network (Harland, 1996, 1997; Slack et al., 1998; Handfield and Nichols, 1999), ranging from the thread suppliers to the final consumers. The true innovation lies in the way in which each firm participates actively in the life of the network and in final consumer satisfaction using co-ordination mechanisms (Grandori and Soda, 1995) such as communication systems and procedures that are easy to assimilate and transmit, complementary methods and technologies, and by sharing the same mentality and philosophy of quality management. Each partner in the chain knows what the final aims are in terms of the quality demanded by the final user and there are no longer any secrets or tacit collaboration. The final result is the kind of system where every article of clothing is the sum of the different operating stages (i.e. spinning, weaving, making up and distribution) carried out by legally separate firms, the competitiveness of which on the market is unique (Evans et al., 1993).
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