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The Realities of Becoming a Long-Term Supplier to a Large TQM Customer

Author

Listed:
  • Christopher J. Roethlein

    (Department of Management Science and Information Systems, University of Rhode Island, Kingston, Rhode Island 02881)

  • Paul M. Mangiameli

    (Department of Management Science and Information Systems, University of Rhode Island, Kingston, Rhode Island 02881)

Abstract

In late 1993, the range appliance division of Whirlpool Corporation adopted total-quality-management principles. It announced that companies would have to meet specific objectives and support quality if they wanted to be considered as future suppliers of Whirlpool's components. Many of Whirlpool's established suppliers were suddenly forced to realize that long standing relationships were no longer important. One of Whirlpool's long-time suppliers, Stanley Engineered Components (SEC), a small supplier of oven-door latches, spent three and one-half years attempting to accommodate and keep its largest customer. How did SEC accommodate and satisfy Whirlpool? Top management committed itself to a complete change in corporate philosophy, strategy, and practice. To bring about the change, top management hired talent from outside and developed in-house talent. Top management used TQM-style principles as a method of competitive advantage to obtain new business contracts. SEC understood and complied with the needs of its customers.

Suggested Citation

  • Christopher J. Roethlein & Paul M. Mangiameli, 1999. "The Realities of Becoming a Long-Term Supplier to a Large TQM Customer," Interfaces, INFORMS, vol. 29(4), pages 71-81, August.
    • Handle: RePEc:inm:orinte:v:29:y:1999:i:4:p:71-81
    DOI: 10.1287/inte.29.4.71
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    Citations

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    Cited by:

    1. Crama, Y. & Pascual J., R. & Torres, A., 2004. "Optimal procurement decisions in the presence of total quantity discounts and alternative product recipes," European Journal of Operational Research, Elsevier, vol. 159(2), pages 364-378, December.
    2. Bin Jiang, 2009. "Implementing Supplier Codes of Conduct in Global Supply Chains: Process Explanations from Theoretic and Empirical Perspectives," Journal of Business Ethics, Springer, vol. 85(1), pages 77-92, March.

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