SAI global manufacturing.
Product recalls, customer complaints, and negative reviews can have a huge impact on a brand's sales and revenue.
From SAI Global Technical Manager Australia & Southeast Asia Saeid Nikdel.
There have been more than 300 product recalls in Australia this year (ACCC, Recalls, 2021) and most recalls are typically due to failure of the product to comply with legal and regulatory requirements – such as proper labeling – that can pose a safety risk .
SAI Global – a trusted global leader in compliance and risk management solutions through its standards, security and training offerings – urges brands, manufacturers and all relevant companies in the supply chain to improve their quality processes and handle recalls and complaints through robust ISO 9001 quality minimize management system. ACCC studies suggest that only about half of shoppers are returning products to retailers, and Australia is experiencing about two deaths a day from unsafe consumer products (ACCC, October 2019).
Australian companies along the supply chain, particularly manufacturers of medical, food and essential products, can minimize recalls through a quality management system that guides their actions to investigate and analyze defects, improve quality, prevent defects and reduce supply chain fluctuations .
The success of an organization depends on the quality of its products and services.
Quality drives customer satisfaction and loyalty and helps companies gain a positive reputation and an advantage over competitors. Consumers are increasingly seeking the opinions and ratings of other customers before committing to purchase goods and services, increasing the importance of quality assurance for manufacturers, brands and retailers.
Safer products mean minimal risk of accidents or product recalls, which in turn increases customer satisfaction. The ISO 9001 quality management system ensures that products meet legal and regulatory requirements.
Companies held liable for the supply of products that do not meet Australian standards or for misrepresenting their products can face a fine of up to $ 500,000 for an individual and $ 10,000,000 for a corporation (ACCC, Product Safety). If a company is found to be manufacturing and selling non-compliant or unsafe products, it must recall those products and also reimburse customers for compensation – and the damage to reputation after such a product recall can be difficult to repair.
On a business level, the management system could help improve a brand's reputation. At the operational level, it guides the company to proactively investigate and identify the causes of quality problems and take immediate corrective action to avoid repetitions and reduce future recall risks.
According to SAI Global, companies that are serious about quality need to consider the processes required to develop a quality product or service, as well as the various factors that can affect quality. It is therefore advisable to implement not just a quality management system, but an integrated management system that acts holistically to ensure that all parts of the company function at a high level, from health and safety to information security and environmental responsibility to quality.
An integrated management system is not just about risk management. It affects all aspects of a business function and helps companies gain insights, streamline processes, determine the need for new products, develop and bring them to market, reduce waste, introduce new technologies to increase efficiency and identify potential customers .
Standards are important tools that help Australian companies operate safely, legally and productively. Companies are increasingly choosing to comply with Australian standards themselves to gain more consumer confidence. In November 2020, Amazon signed a new voluntary e-product safety pledge from the ACCC (ACCC, e-commerce companies undertake to strengthen product safety online). According to the Promise, online businesses, especially those acting as intermediaries between multiple sellers, regularly check Product Safety Australia's website for product recalls to ensure they are not selling unsafe products. They also take steps to remove all products that are deemed unsafe within two business days.
The ISO 9001 Quality Management System provides a framework and outlines steps companies can follow to improve product quality, such as:
- Determine the inputs – what is required to implement the planned processes – and the outputs – what customers expect – of the processes.
- Determine the sequence and the interaction of processes.
- Determine and implement criteria and methods (including monitoring, measurements, and related performance indicators) necessary to ensure the effective operation of the processes
- Determine what resources will be needed to carry out the processes that have been decided.
- Assign responsibilities for the organization's processes. These responsibilities are set out in documented information, including operational guidelines, job descriptions, and documented procedures.
- Address risks and opportunities.
- Evaluate the processes and implement changes if necessary.
The benefits for companies implementing an ISO 9001 quality management system:
- Improve responsiveness to legal and regulatory issues such as: B. Product deviations or product recalls.
- Reduce the total cost of rework, waste of materials, and maintenance of machines and devices.
- Reduce downtime and the cost of business interruptions and project delays.
- Improve product quality and liability, service delivery, and customer satisfaction.
- Improve profitability through process improvement and asset management.
- Recognition for achieving an international benchmark.
About Saied Nikdel
Saeid Nikdel is Technical Manager at SAI Global. He joined the organization in 2013 and is responsible for auditing quality, occupational safety and environmental management systems in SMEs and large companies. He has more than 20 years of experience in the areas of risk, compliance and auditing and has extensive knowledge in the development, implementation and maintenance of management systems. During his eight years at SAI Global, Saeid has supported numerous organizations in Australia and Southeast Asia.
About SAI Global
SAI Global is a provider of integrated risk management solutions – a combination of leading certification functions, training services and advisory services across the entire risk lifecycle. It helps companies proactively manage risk to build trust with customers and achieve business confidence, growth and sustainability. The company has a global reach with locations in Europe, the Middle East, Africa, America, Asia and the Pacific. More information is available at www.saiassurance.com.
