ISO 9000 and supply chain efficiency: Empirical evidence on inventory and account receivable days

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71 Citations (Scopus)

Abstract

ISO 9000 is the most popular and widely adopted meta-standard for quality and operational improvements in manufacturing supply chains. However, few studies have quantitatively examined its impact on supply chain efficiency. In this paper we measure the material and cash flow efficiency of ISO 9000 certified firms in terms of inventory days and account receivable days. We analyzed changes in these time-based efficiency indicators prior and after ISO 9000 implementation in 695 US-listed manufacturing firms. We found that ISO 9000 certified firms shortened the number of inventory days by 3.68 days 1 year after ISO 9000 implementation. They showed continuous improvement and shortened the number of inventory days by 8.75 days (8.29% shorter) 3 years after certification. Account receivable days and overall operating cycle time also showed similar significant reductions after ISO 9000 implementation. The results reveal that ISO 9000 adoption helps improve the material and cash flows in manufacturing supply chains.
Original languageEnglish
Pages (from-to)367-374
Number of pages8
JournalInternational Journal of Production Economics
Volume118
Issue number2
DOIs
Publication statusPublished - 1 Apr 2009

Keywords

  • Event study
  • ISO 9000
  • Supply chain efficiency

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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