How Do Professional Importers Ensure Product Compliance?

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How Do Professional Importers Ensure Product Compliance?

Your brand is only as reliable and trustworthy as the quality of products you put out into the market. Without a robust product compliance program in place, the integrity of your brand is bound to be compromised sooner or later. Our complimentary eBook ‘How to Build Systems to Ensure Product Compliance in Large Supply Chains’ lays the foundation for building a robust compliance program to help you avoid costly mishaps and begin overcoming compliance issues today.

Product Compliance is Key To Your Success

Product compliance starts with a compliance program Effectively managing growing supply chain complexities is something that most purchasing managers/importers deal with on a day to day basis. As your brand grows compliance issues you never knew were there (nor were prepared for) may rear their ugly head, and it’s up to you to begin pinpointing issues and plugging the holes your profits will fall through, before the consumers of today tear them open even wider. Ensuring product compliance starts and ends with one thing: A robust compliance program. 

Building a compliance program

A working compliance program addresses the rules, standards, regulations and requirements that your company or brand sets for its suppliers. These standards will create the accountability within the supply chain that consumers today are looking for. At this stage if you are pondering on the necessity and importance of compliance, take a look at this: In 2007, Mattel had to recall 1.5 million lead covered toys due to negligence. The company ended up having to pay a $12.3 million settlement with another $2.3 million in civil penalties for violating a lead paint ban.

“Can your company afford a mistake like this?”

‘How to Build Systems to Ensure Product Compliance in Large Supply Chains’

‘How to Build Systems to Ensure Product Compliance in Large Supply Chains’

Learn how to avoid costly mishaps so you can begin overcoming compliance issues through understanding:
  • Why compliance is necessary now more than ever
  • How to turn your compliance challenges into opportunities for growth
  • The specific audits that are needed for compliance in your supply chain
  • How to go about creating a compliance culture for your brand
Our complimentary eBook will provide you with in-depth insights into the systems that go into building a compliant supply chain that can sustain your company going forward. The key to your success will be how well you are able to integrate these systems into every tier of your brand and supply chain, creating opportunities that will give you a competitive advantage over your competitors.

ARE YOU FACING COMPLIANCE ISSUE CHALLENGES?

START BUILDING YOUR COMPLIANCE PROGRAM TODAY – CLICK HERE TO GET YOUR FREE COPY!

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2 Ways To Ensure Supply Chain Compliance

Supply chain compliance is becoming one of the biggest challenges faced by all retail professionals. Among small, medium enterprises’s it likely hits a little harder, with limited resources and where costs are always a make or break factor. Often-times you can only afford a supplier lacking certain levels compliance documentation, which in turn requires you to monitor them even more stringently, but can you afford the resources to do so properly? Your supply chain is dotted with complexities that can expose your organization to risk. This risk as you know needs to be avoided and planned for with actionable steps in place to mitigate any kind of exposure or threat to your supply chains operations. So let’s do just that…  In this blog post, I endeavor to highlight only two of the most common supply chain challenges that many regional retailers currently face, but also what you can do to begin achieving that desired supply chain compliance for your brand so that you may begin safeguarding against avoidable areas of risk. So let’s dive in;

First Identify your challenges

Identifying the challenges that you face within your retail supply chain is always the best place to begin, here I list two of the most common challenges that are experienced among many a local retailer; 1. Supplier relationships –  Your suppliers are the key to your entire operation. Take a moment consider that… Supplier collaboration can foster growth, if allowed they can also help you to create operational efficiencies which enables you to get your product to market a lot faster. This relationship will act as an incubator for out of the box, innovative thinking as your supplier begins to take real ownership of the end products and their quality. The way in which you engage with your suppliers from the very beginning, will set the tone for your operations going forward. Careful assessment is needed when signing on new suppliers, this is often the point at which compliance problems begin to seep in. You need to ensure that all the appropriate factory technical documentation is in order when selecting a supplier. A bit of due diligence in this area will guard you in the long-run. This will ensure that you have a defined and agreed upon set of operating principles where everything is done in compliance with these operating principles and standards. 2. CSR and environmental impact – Through adequate evaluation and a good a supplier relationship you will be able to determine CSR and environmental impacts. This is either done through a social compliance audit and an environmental audit which is either done in-house or through a third-party quality provider, such as API. An environmental audit will provide insight into things like by-product waste of the factory, how they dispose their waste, who disposes their waste and what levels of CO2 are being emitted and whether or not any of this can be reduced or are even being addressed. The results will help you to determine their impact on the environment and whether or not they are compliant with local and/or international environmental laws. A social compliance audit provides insight into things like child and forced labour, overtime and possible wage related disputes. This things are not only unethical, but should your brand be aligned with these practices, you will be destroying your brands reputation and image. The results of the above audits will enable you to make an informed decision about the type of supplier you wish to align your brand with. Supply chain compliance and environmental auditing Let’s take a look at what Walmart did; They created what they call the Sustainability Index, which is essentially a scorecard for suppliers to be reported on from various social and environmental production factors. Walmart has said that by the end of 2017 that 70% of its products will come from suppliers who participate through this Index, and as a benefits they will be endorsed as a sustainable partner and proud Walmart supplier. Solutions Supply chain compliance is an important issue to address, with many local retail brands realising that compliance needs to be a top priority to be achieved in order to achieve a globally competitive advantage in the market. So how do we go about achieving just that? Good supplier relationships for supply chain compliance 1. Supply chain visibility –  This refers to the data visibility made available within your supply chain; from where your raw materials come from, to your factory’s technical operations right through to your inventory management strategies. All of this data needs to be made available and visible to your consumers to create a sesnse of openness and trust within your supply chain operations. **When bringing on new suppliers be sure to ask for access to all of their compliance documentation from health and safety, to environmental and technical information. 2. Supply chain transparency – This is where your organisation begins to analyse current quality and compliance procedures. Transparency and visibility need to work hand-in-hand the data provides insight into the operations and the operations provide the data to be analysed. Supply chain transparency endeavours to take a deeper look into your systems and processes, understanding what makes them work and also not work. This approach to your supply chain operations allows you to mitigate risk early on, but also identify any areas that may need improvement, therefor adopting a continuous quality improvement cycle. As mentioned earlier, consumers actively research any retail brand’s supply chain and its processes from raw material to the moment a product reaches the floor to right before they make that purchase decision. It is crucial for your brand to ensure clean and compliant operational procedures if you are to achieve a globally competitive brand. Supply chain compliance need not be another complexity that your retail brand needs to face, through actively engaging and applying the above suggestions to your operations they will indeed help you on your way to a successful and compliant supply chain that puts your brand in a position of growth and also mitigates against any unnecessary risks.

YOUR QUALITY ASSURANCE SYSTEMS letting you down?

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Toy Testing: How To Comply With En 71 & ASTM F963

With the strict safety and quality standards of children’s toys, there is absolutely no room for non-compliance. Compliance issues can cause potential health hazards and in some cases fatalities. Here we discuss the importance of toy testing and provide you with an exact outline of toy safety regulations and all of the most recent updates to help you avoid compliance issues, so that you can continue to produce toys of the highest quality. The toy industry is a lucrative one with “toy sales in 2015 increasing by 4% over 2014 to $87.4billion…with estimated growth expected to exceed $90 billion in sales in 2016.”

There is surely continued opportunities for economic growth and sustainable innovation in this massive industry going into 2017 and beyond.

But, the toy market, and product safety specifically, makes it a volatile one.

What happens when due diligence is left by the wayside?

41% of toys that were recalled in the EU alone were due to choking hazards, whilst chemical compositions makes the second largest recall between January 2016 and July 2017.

By looking at the graph below, you will see the breakdown of recalls over this period of time:

Toy testing regulations and compliance issues

The stats above paint a clear picture for importers to abide by toy safety compliance standards, for it is not only in your best economic interest, but also for your brand’s protection and growth.

Today, children’s toys are subject to some of the strictest safety and quality standards in the retail marketplace due to the sensitive nature of their consumer base.

The question is…

How do importers keep up with the latest news in toy safety regulations to avoid potential disasters and recalls as reflected above?

In this blog post, I seek to highlight the EU EN71 safety standards that your imported toys need to comply with. I will also highlight the latest updates of this standard, to ensure you are up to date with the latest in toy compliance.

We also look at the US standard, ASTM F963, where we will highlight the latest updates to ensure that your products are in compliance. Lastly, I seek to provide you with actionable steps to achieving compliance according to these standards and what you can do to continue producing children’s toys of the highest quality.

EN 71

The EN71 is a set of European Product Safety standards that apply to all toys, sold in the European Union. The EN 71 also forms a part of the CE directive. As an importer of children’s toys you will need to ensure that the toys you are importing into Europe are labelled with this CE mark.

This mark basically stipulates that a particular toy is compliant with the safety regulations as laid out by the European Union and its safety standard.

Here is a table of what this standard is inclusive of, but I will also highlight the ones that have been updated recently so that you, know exactly what your products need to be compliant with;

TABLE of EN71

Toy testing & safety regulations - En 71

The latest EN71 update includes

The latest children’s toy update and revision of the above table is as follows;
The CEN has published Toy safety standard EN 71-12:2016 for n-nitrosamines and n-nitrosatable substances. This standard is expected to be harmonized under Toy Safety Directive 2009/48/EC by publication in the Official Journal of the European Union (OJEU).
Major change of the new version includes this;

  • More stringent limits of n-nitrosamines and n-nitrosatable substances for toys intended for use by children under 36 months and intended or likely to be placed into the mouth of the child.
  • a modified definition for ‘elastomer’ from ISO 472:2013 (Plastics – Vocabulary, for better clarity)
  • a new procedure for the extraction process for toys and parts of toys other than balloons
  • use of porous graphitic carbon (PGC) reversed phase (C18) high performance liquid chromatography (HLPC) columns as an additional option for analysis
  • an additional set of multiple reaction monitoring-transitions (MRM-transitions) for quantification and identification

What this revision should mean for your sourcing and production strategies

This standard is applicable to the following products;

  • Toys and parts of toys made from elastomers and intended for use by children under 36 months
  • Toys and parts of toys made from elastomers and intended to be placed in the mouth
  • Finger paints for children under 36 months

Manufacturers will need to provide evidence of compliance from the supplier of these materials, before the manufacturing of these items can proceed. There may also be a random sampling after mass production for post production testing to ensure you are not in violation of the above safety regulations.

ASTM F963-16

The ASTM F 963-16, The Standard Consumer Safety Specification for Toy Safety, is a comprehensive standard that addresses numerous hazards that have been identified with toys.

Toy testing & safety regulations ASTM F963-16

 

The latest ASTM F963 update includes

  • Among the changes, the 2016 revision addresses ride-on toys with: a new curb impact requirement, a clarification of overload and stability requirements, and a strap exemption.
  • new labelling requirements for toys that have certain small coins or button batteries,
  • temperature and current-limiting requirements for lithium-ion batteries, and
  • new requirements for materials and toys that could expand if accidentally swallowed.
  • Other revisions include:

– new soaking and compression tests for magnets

– new requirements and clarifications related to microbiological safety;

– clarifications to heavy elements requirements for toy substrate materials

– revised requirements for toys involving projectiles; and,

– clarification of requirements and supplemental guidance for impact hazards.

What this revision should mean for your sourcing and production strategies

You will have noticed that all children’s toys that have been produced after 30 April 2017 needed to be tested according to ASTM F963-16.

According to ASTM F963-16 all toys that are intended for children of 12 years old and under need to be tested by a registered CPC third party testing and quality provider, who will then furnish you with the appropriate product specific CPC which declares that your product complies with the federal toy safety standard.

Suggestions for complying with these toy testing regulations

As an importer you may be feeling overwhelmed about adhering to the regulations as laid out above and while you should be doing everything you can to adhere to them, here we lay out a few suggestions of how to go about doing this;

  • You need to work towards improving quality control procedures by strictly monitoring the quality of raw materials. Do not fall into the trap of using cheaper, substandard materials. Whilst this may be appealing for cost reduction, you will be putting your brand at unnecessary risks.
  • Improving your products quality always needs to be a primary goal. Many of the new updates in regulation also stipulate the use of a third party quality provider as mandatory for your products compliance.
  • Ensure you use a third party company that is up to date with the latest in toy testing and safety regulations. This will reduce the risks of potential product recalls resulting in a bad image for your brand, but also a loss in revenue.
  • Seek new non-toxic environmentally-friendly raw materials. How do you go about sourcing your raw materials? This may step may be a little more difficult to pursue, but let’s take a look at Lego. Their blocks are made of plastic, but currently, they are investing loads of money and time into finding alternatives to plastic for their famous building blocks. It’s this kind of commitment that ensures a positive and innovative position in the market place.

Understanding the regulations and what they mean for your current sourcing strategy for children’s toys will help give appropriate direction and guidelines to your current competitive positioning in the market place.

By understanding these regulations and ensuring compliance according to them, you are able to guard yourself against potential product recalls and even potential lawsuits that could come from health and safety violations that are sadly too often found within children’s toys.

“API is equipped to meet the above product testing and safety requirements accordingly to ensure your brand’s safety and protection.”

 

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Social Compliance Audit For Consumer Electronics

How should importers of consumer electronics avoid a supply chain which includes suppliers who use child labour, have dirty and unsafe conditions, or who don’t follow labour rules? Here we endeavour to outline how a social compliance audit for consumer electronics can positively position your brand in the market place. Conditions as mentioned above have made themselves all too familiar within the retail supply chain, and the worst part is that many retailers claim that they didn’t even know about this right up until before these tragedies became global news. So how can we prevent this? A social compliance audit. This audit can go a long way in preventing some of the damaging issues many brands of consumer electronic products, and indeed other items, are all too familiar with. Social Compliance Audit For Consumer Electronics A social compliance audit can be difficult to attain, but is an absolute necessity for that transparent supply chain your consumers today are demanding. A social compliance audit ensures that a factory and its practices are abiding by all local laws and that you meet all of the social obligations as set out by the guidelines of the audit, from fair wages to no instances of child labor in a factory. In this blog post, I will outline the exact procedure of this audit, the benefits it offers to your consumer electronics brand and how you can go about conducting this audit for yourself. So, let’s dive in…

What can consumer electronic importers can expect from a social compliance audit?

Consumer electronic brands endeavour toward social compliance for these main reasons;
  • Brand protection
  • To ensure your factory is clean and meets high levels of standards
I have gone on to create a list of what can be expected of a social compliance audit of your electronics factory, to help you better prepare for this; Onsite inspection – The auditors go around and inspect your factory for health and safety violations, this can also be inclusive of any sleeping quarters that may be on site, which will be relevant to the factory being audited. In the case of consumer electronics, which is less labour intensive, but has more machinery which may cause potential mechanical and electrical hazards. Therefore your auditor will spend more time assessing the safety and working environment, from sufficient fire exits to clear instructions of how to exit the building in the case of an emergency. They will also spend time assessing whether sufficient personal protective equipment (PPE) has been made available to each worker. Social Compliance Audit For Consumer Electronics - Document review Document reviews – Auditors will check all the documentation of the supplier to determine the presence of any possible child labour, an all too common violation within the consumer electronics industry. They also assess whether there are any violations of extended working hours and wages. They will also look into what types of social insurance are available to workers and review any fire and safety documentation, which will help to determine whether or not any safety precautions or plans are in place. They will also inspect whether or not there is any environmental monitoring being done and, if so, how it is conducted. Employee interviews – The auditors conduct interviews with the factory in question staff, where they ask them about their working hours, overtime, and about their holiday/leave time. Auditors also like to cross check these statements by interviewing factory management to ensure there are no discrepancies. This helps to clarify whether there are any instances of abuse or misconduct between staff and management. In the case of a re-audit these interviews will then be conducted again to ensure improvement plans are being implemented properly. Closing meeting with audit status – This meeting reveals the audit results of your CE factory and also makes suggestion for improvements. If you use a qualified third party quality management provider to conduct this audit, they will provide you with an improvement plan and customize it according to your needs. Continuous improvement – A reputable third party quality assurance solution provider will provide you with a plan of execution to rectify the shortcomings of a factory. To ensure the factory is executing the suggested improvements there are also unannounced visits by auditors to evaluate the factory’s improvement progress. Factories that attain a clean audit, will only be audited on an annual basis. In factories that achieve marginal results, they are often dropped in on unannounced and also receive audits on an annual basis. Factories that fail will then have a follow up audit again in a few months.

Protecting your electronics brand through a social compliance audit

Attaining a pass on your social compliance audit report is a commitment that your organization makes to ensuring that you are socially responsible and that you are committed to treating your factory’s staff ethically and in compliance with global ethical standards. So the question is… Is your consumer electronics brand committed to achieving an ethically responsible supply chain? Let’s take a look at the standards as laid out by SA8000: The 9 SA8000 social compliance requirements are:
  • Child labour – No children younger than 15 years of age may be employed by any factory.
  • Forced labour – No person may be employed by a factory if they haven’t offered to do so voluntarily or be forced to work under the threat of punishment or retaliation.
  • Health and safety – A safe and healthy workplace environment must be provided by the factory, who should also prevent any potential health and safety incidents and work related injury or illness from occurring. In the case of consumer electronics you would need to ensure that there is sufficient personal protective equipment within factories.
  • Freedom of association and collective bargaining – All staff have the right to form, join and organize trade unions and to bargain collectively on their behalf.
  • Discrimination – A factory is prohibited from engaging in discrimination in hiring, remuneration, access to training, promotion, termination or retirement.
  • Disciplinary practices – A factory is prohibited from engaging in or tolerating the use of corporal punishment, mental or physical coercion or verbal abuse of employees.
  • Working hours – A factory must comply with applicable laws, collective bargaining agreements and industry standards on working hours, breaks and public holidays.
  • Remuneration – The right of staff to a living wage must be respected by the factory.
  • Management systems – Compliance must be reviewed and implemented to the SA8000 standard through developed policies and procedures.
Social Compliance Audit For Consumer Electronics - SA8000 In understanding the ethical compliance standards as laid out above, you are able to make informed decisions about the suppliers you choose to use in the manufacturing of your electrical products. Panasonic and Sony have been caught in supply chain scandals, that have created immense amounts of bad media coverage for the global electronic brands. Accused of unfair labor practices in factories, with vastly underpaid staff and electrical components that are said to be sourced from parts of the world known to be inclusive of child slave labour. With this in the media, consumers will begin to think twice about purchasing your product as they do not want to be affiliated with brands who are not achieving progress toward a transparent, sustainable retail supply chain as laid out by SA8000 guideline. Can your consumer electronics brand afford publicity like this? Achieving your social compliance audit will reduce any potential risks relating to the violations of global ethical standards, which puts your brand in a risky position and can cost your organization public shaming and embarrassment, scarring your brand. Dependent on the severity of the violation it could also cost you millions in lawsuits too. This type of audit provides the desired transparency many consumers are looking for within the retail supply chain. Today’s consumers are becoming more concerned with the way in which products are sourced and manufactured, and rightly so. So what are you doing to maintain consumer trust in your brand?

Who should conduct your factory’s social audit?

Many suppliers choose to conduct their own audits with in house teams, this method is untrustworthy which can produce bias results of the supplier.

Unless you have an extremely good relationship with the supplier in question and know for a fact that they are not going to lie on your audit report, then this way of passing a factory social audit is not our recommendation. Hiring an impartial third party quality management provider may be the answer They are viewed as independent parties with all the technical expertise to be able to produce unbiased reports and provide you with actionable improvement plans for you to progress forward in achieving your factory’s social compliance. factory social audit

Independent audits are also taken into higher consideration by NGO’s and the media to be a truer and an honest reflection of the findings within the factory.

By outsourcing this service you not only are able to protect your brand’s image, but you minimize any potential risks you might face by not having a social audit, that can prove to be costly for your brand in many more ways than just revenue loss. Many consumer electronic factories are still found in violation of unfair labor practices or extensive work hours. This doesn’t have to be… Let’s take a look at what Apple has implemented when underage labor is found within their factories; “If we find underage workers in our suppliers’ factories, we make the suppliers return the children to their homes, pay for their education at a school of their family’s choice, and continue to provide income for basic needs until they reach the legal working age. We also enlist a third-party organization to monitor the children’s progress and report back to us. After they complete their education, suppliers must offer them reemployment. In 2015, we found three cases of underage labor — and we will continue to look for it.” Apple has shown that ethical and fair practice within your factory is not impossible to attain. It will be up to you to implement an appropriate strategy to deal with the social challenges felt within consumer electronic factories. Apple is a global leader for consumer electronics, but is also innovating in the way that they say no to injustices in a supply chain and go above and beyond to achieve an ethical and fair supply chain to produce the high quality electronics that they offer. Are you willing to do what it takes to achieve that transparent supply chain? API can help you attain this goal as your third party auditing partner. Have you undertaken SC audits across your CE supply chain?  If you have any question about factory social audits, feel free to contact us and we will be pleased to answer them and help where we can.
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Compliance Issues & Product recalls: 4 Lessons To Learn From!

Product recalls are a veritable nightmare! There is no other way to express the dread and that sinking feeling when the customer complaints start rolling in, and you begin considering whether or not to announce a recall. A recall will spell significant damage to your brand image, and thousands, if not millions of loss in revenue. Yes, you may argue that retailers are insured against recalls, but building trust with your customers is a difficult task at the best of times. The digital age has also made it more difficult to hide the smallest of quality problems from your customers, and rebuilding trust from slip-ups that could have been prevented just adds fuel to a fire that won’t stop burning. But it’s not all doom and gloom… Product recalls can be prevented through best practice QC procedures, through due diligence, through strategic planning and implementation, through proper inspection reports and appropriate product testing to ensure that  your compliance issues are a thing of the past. In this blog post, we take a look at four product recalls from household goods and electronic giants in recent history, that could have been prevented through a bit of due diligence, through proper testing procedures and reliable quality management service providers.

1. Keurig Coffee Makers To Pay $5.8 Million In Civil Penalties

Keurig is a well-known coffee machine brand in the United States, with many corporate offices around the country being dotted with these machines, where it fast became an office staple. But, imagine this. Waking up to make that quick cup of coffee before work, or even offering an important investor a cup of coffee before heading into a meeting, and your machine begins to steam and spit out boiling water, causing a potential burn injury. Not an ideal situation… This left Keurig in some seriously ‘hot water’! Compliance issues and product recallsOn 23rd December 2014, the Consumer Product Safety Commission (CPSC) announced the recall of over 7 million coffee machines.Between 2010-2014, there were over 200 complaints of boiling water spraying out of the machine and approximately 90 burn injuries reported.It has been recently announced that Keurig has agreed to pay over $5.8 million in civil penalties to the government. This penalty is to settle the charges against Keurig as they knew about the product’s defect, but failed to report it and continued to export the product despite the fact that it can and did cause major injuries. What should have been done differently? Keurig appealed to consumers to request a repair kit that was able to fit onto the product free of charge. In reviewing the repair kit installation guidelines, it consisted of a new basket with a rubber seal to ensure that no hot water or steam would escape during use causing potential for burn injuries. There was also an extra handle that slides over the original one to avoid direct contact with the hot water or steam that may be released when the handle is in position, or if hot water or steam is released during use, it would be pushed in the downward or upward position. This kind of repair kit tells us that problem was related to product design more than any manufacturing or quality control issues. This story also tells us how that at times it may not be enough to be in compliance with just the testing regulation. There may be times when specific tests need to be developed to beyond the standard testing criteria, simulation tests are often a good example here; where a quality control team can simulate the kind of tough operating environment that a specific product may need. This can often be done through a thorough risk assessment that should be completed during the product design stage. The CPSC has not been able to disclose any more information as to what caused the defects, but that Keurig has agreed to build and implement a compliance program to ensure that they comply with the Consumer Product Safety Act. Adopting a compliance program stands as the rules, standards, regulations and requirements your organization sets for its suppliers, as this will grant you full transparency into supply chain operations. A compliance program should not just be another program that importers tick off on an annual basis. It should become a key outcome and a reflection of an effective and efficient organization. The key to a successful compliance program will be how well you can integrate compliance procedures into every facet of your brand.

2. Hasbro Recalls 1 Million Easy Bake Ovens

You have found that perfect Christmas gift for your little ones. One that will create all those cute little memories that you will hold onto for a lifetime. Then, a cry for help as their hand is stuck inside the toy under the element, causing some serious injury. Quite far from a ‘Merry’ Christmas… Hasbro was in deep with over 1 million easy bake ovens that were recalled and over 77 reports of injury, and a report of one five year old being burnt so terribly that a partial finger amputation was needed.

What should have been done differently?

There was a finger entrapment test that was developed under the ASTM F963 as an industrial standard, but which only came into regulation in 2013 under the Consumer Product Safety Improvement Act (CPSIA). Currently, all toys and children’s products need to be designed to comply with this ASTM F963 standard. Retailers should be requesting that their manufacturers and suppliers need to be testing in compliance with this regulation, and have to be passed through an accredited third party lab before mass production can begin. In meeting this criteria, there will also have to be a double check; either during inspection or through the lab with a random sample that is picked during the inspection process. Procedures like this help to minimize potential risk and recall of a noncompliant product.

3. Sony To Pay $19 Million Dollars in Battery Recall

Exploding Dell notebooks with non-compliant Sony batteries. A match made in retail hell. 4.1 million batteries in Dell notebooks needed to be recalled for overheating and potentially catching fire. Research says that this was due to metallic particles being present in the critical parts of the batteries, at certain times causing instability in the battery. These batteries were not only used in Dell computers, but other brands like Apple as well, so they recalled over 10 million batteries in total. Sony has recently agreed to pay $19 million dollars as settlements to this ongoing lawsuit.

What could have been done differently?

It has been said that the reason for this potential hazard was due to the presence of metallic particles, in the battery, in particular; nickel was found in these batteries. It unexpectedly got into the battery during the manufacturing process during two stages of the production process. Here we can assess that the factory’s quality systems should have been reviewed and as to whether or not their QC team followed best practice in identifying potential defects. There may have been bad storage practices causing a mix up between defective products and good one’s. Compliance issues - Sony battery recall A root-cause analysis would have been needed to adjust the production line to fix the problem. Once this analysis is completed and amendments made by the retailer, a third party representative would need to validate the preventative and corrective action for the defect. Factory audits can be an essential to safeguarding against product defects and recalls. Practice due diligence here, ensure your quality control team is on top form and up to date with the latest in testing and regulation.

4. Fidget Spinners – Over 200 000 Have Been Recalled!

The latest craze amongst children all over the world. The invention was originally intended to improve fine motor skills in children with learning disabilities, but grew in its popularity faster than what one could even blink. Compliane issues - Fidget spinner.jpg In fact, the inventor today does not get a dime out of the sales of this popular children’s toy, as she was told her idea was not good enough and wouldn’t sell. Needless to say, millions of these toys are sold the world over. But, she could count that as somewhat of a blessing… Recently, over 200, 000 of them had to be recalled as they caused major harm to many children, with fingers getting stuck in the outer bearings to smaller parts being swallowed, where surgery was needed.

What could have been done differently?

This toy is specific in the types of international regulation and compliance that it needs to meet, but not many retailers can provide the necessary compliance documentation for this product. It has been urged to rather seek out the compliant toys with all the necessary risk and warning labels on them. As per international standard for general toys, it is required to drop this toy a few times only. This dropping of the toy often does not take into consideration just how often children drop these spinners. These spinners are dropped multiple times a day by end users, so this test in fact may not represent an adequate simulation. A factory should be creating tough testing procedures to simulate the type of environment this toy will likely be exposed to. These tests need to go beyond the standard testing criteria to ensure a durable, safe spinner is found in your children’s hands. Apart from the strict QC procedures that should have been conducted, the correct lab tests should have been followed, as some spinners (the ones with batteries) were found to have high levels of lead present, posing a threat to its end consumers. The appropriate chemical tests should have been performed to identify these chemical risks early on, giving your supplier time to rework the product to meet its compliance standards.

Conclusion

Strict quality control procedures need to be followed. By ensuring you follow QC best practices for your product you begin to safeguard your brand, your product and even your end-consumer from a potentially bad quality product that can injure them, and cost you millions in revenue. If you are not using a third party quality provider for all your testing and compliance procedures conducting things like; pre-purchase testing and inline inspections can be key to identifying these defects early on. A bit of due diligence and strict QC procedures can go a long way in saving you the terrifying reality of product recalls and persistant compliance issues.

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Third-Party Quality Audit Vs. Internal Quality Audit

Maintaining the efficiency of your supply chain and overall product quality may be something that you can handle through an internal quality audit, but the questions are; – Are you really able to afford the time and resources that is constantly required to keep up with effectively measuring and managing your systems? – Are you able to conduct an objective analysis of the state of your systems? – How does doing this ensure your place in the market in the eyes of your customers? By understanding the pro’s and con’s of both conducting both an internal quality audit vs a third party quality audit, you will be able to ensure that not only your products pass the minimum compliance requirements, but that they are of the highest possible standard of quality, while also ensuring that you are streamlining your production operations to that of the highest quality. Sound like something your organisation can benefit from? Read on to discover the benefits of conducting a third party quality audit as opposed to using an in-house quality audit team here.

Are you up to date with all of the latest in product regulations?

The supply and demand of our current global retail landscape means that there is always a need to be up to date with the changes in product regulation.

Third party quality Audit

A third party quality provider has access to resources through associations and a network of online cloud-based systems that enable them to keep up to date with the latest in product regulations. Access to a network like this is a key part of their service offering, this is what will distinguish a good quality external service provider. Capabilities like this are able to streamline your operations which can assist you in getting your product to the market faster, allowing you to stay on top of the supply and demand pressures that are felt in the marketplace. However, when conducting a third party quality audit, you will need to ensure that the auditors you choose specialize in your specific product category, by doing this you will ensure that they are up to date with the most relevant product and regulation information. Let’s take the global fidget spinner craze; this children’s toy  hit the shelves faster than what the market could blink. Third party quality inspection services - fidget spinner It turns out that over 200 000 of these had to be recalled due to procedural non-compliance as well as the product having critical defects; meaning that this product may cause injury or harm to its end consumer. A third party quality auditor would be able to provide you with an unbiased inspection report, including the above information, thus protecting your brand from damage and product recalls that can become extremely costly.

Internal quality audit

Reliability is key. Is your internal staff able to spend the time they need ensuring that they understand all of the relevant product information that you need? While your organization may have the know-how, you likely do not have the resources or capacity to dedicate someone to ensure they are well researched into the latest regulations that are required. third party quality inspection services - geographical networksMany organizations do not have the extensive geographical networks that larger retailers have. Therefore your internal staff ends up spending a lot of time traveling for quality control inspections, with not enough time spent focusing on the quality of a product. This often slows down production processes, with a longer eventual time to market. If we take the Fidget Spinner example into consideration, what is the likelihood of your in-house team being aware of that noncompliance before it hit the market. Think about it. An occurrence such as the above puts your brand at an unnecessary risk, with the potential for bad publicity and a major loss in sales. Can your organization afford this?

Do you have all of the technical expertise?

Product technical expertise and extensive testing and inspection experience is an undervalued commodity in the retail supply chain, how can you begin to leverage it to your advantage?

Third party

An external quality provider can provide you with an extensive network of technical expertise relating to your product and your quality systems, from factory audits to inspection and testing equipment and any specific techniques that may be needed to ensure that you meet your product’s compliance. third party quality inspection services - technological networkSome testing equipment may be unique to a specific product or if there is an update in testing procedures to be inclusive of recent changes in regulation. Often external providers are able to provide technical solutions based on the above specifications, along with teams that are well versed in new testing procedures. External providers will often send their inspectors on training to familiarize themselves with new equipment and testing procedures to ensure a high quality service is offered with a minimum product recall rate. For third party quality providers it is a priority to be up to date with the latest trends and developments in your industry along with the best practices that you should be following. This kind of knowledge and expertise can be leveraged to your competitive advantage.

In-house quality

While your in-house team may have the knowledge about the inner workings of your product and your ideal quality procedures, the reality is that it may not always be enough. Keeping up to date and monitoring the latest in standard and regulation requires a lot of resources, whilst there is also the challenge in maintaining and ensuring all documentation is updated properly, which is often not the case. This limited amount of resources can create unnecessarily complex procedures, that pile up to the sky, but that could have been avoided through a lot of strategic planning and structure. This is often not a strong suit for many smaller organizations. The key is to knowing your strengths and focus on them for your organization’s growth.

Appropriate technology for high quality procedures

Using appropriate technology that enables you to track your operational progress and things like your product inspection reports are essential to streamlining your quality operations.

Third party

It is essential for third party quality providers to have adequate and appropriate platforms in place to manage their clients quality systems effectively. These platforms also need to be capable of recording and tracking all data properly as well as manage certain aspects of documentation and communication. This technology provides thorough data, allowing you insights into your supply chain that would otherwise not have been available. This data can be leveraged into strategies for your brand, from risk mitigation to inventory management, to the way in which you conduct product tests in your lab and the kinds of inspection reports that are being produced. It needs to provide valuable and actionable insight so that you can optimize your quality systems for greater efficiency, which should lead you to a higher production rate and a faster time to market for third party quality inspection - TCF solutionyour product. Add all of this together, and you begin to see higher profit margins and the ability in which you can meet your products supply and demand will also have grown, creating that desired competitive advantage. Let’s take a brief look at the Technical Compliance File solution; This is a compliance solution that allows you reliable and accurate insights into your compliance processes. It is offered through a web-based platform and is a one-stop shop for all of your compliance documents, with real time updates and 24/7 access and insight. This kind of technology allows your organization more focus, control and insight.

In-house quality

Having up to date technologies or systems might be challenging because in-house quality teams still rely heavily on manual entry spreadsheets, which creates far too much room for human error. Skewed data can have far reaching implications for your quality systems, which can often build up into product recalls and financial losses for your brand. There is often the debate about the costliness of software. Now, while this is a valid argument, especially for SME’s trying to keep head above water which is often the only priority, it is suggested to consider slowly integrating technology into your quality systems to begin streamlining your procedures for greater efficiency One of biggest challenges is to manage all technical documentation systemically. It is important to remember that the authorities have the right to access the technical file which is meant to contain a full set of technical documents. Some retailers try to collect this technical documentation through in-house team, but often it is a bit of a mess due to various industrial norms such as;
  • The manufacturer changes the materials from time to time because they found a cheaper price elsewhere
  • The buyer will customize products that are being ordered to make it unique and at a higher market value
  • Most test reports expire a year later, so often documentation is either expired or non-existent.
Therefore an in-house team will have to keep chasing suppliers to provide all the valid documentation and at the same time they are under internal pressure from the merchandising team to release the shipment.

streamlining your shipment release process

Navigating the waters of international logistics is nothing short of a small miracle to get through without the domino effect of nightmares that occur along the way. Your shipments getting stuck in customs due to incorrect documentation creates a series of delays for the rest of your operation.

Third party

Working with a third party quality provider that is able to play a key role in the shipment release process can help avoid having to navigate this web of complex logistics by yourself. third party quality inspection servicesInspection reports are essential in getting shipments released from customs. It will be up to the retailer alongside your quality provider to set up a report rating guideline. This report rating guideline forms a baseline of automation which reduces the amount of manual changes after the reports review. The manual reviewing of these reports slow down the auto shipment processes immensely and this entire process becomes less meaningful. An external quality provider will be able to provide you with industry knowledge and best practices relating to rating reports. You will also be able customize your rating reports according to your product needs. Once this report rating has been created, your quality provider can utilize their technical systems to send daily reports to both the client and your chosen cargo company. This creates a much clearer and faster release process for both you and the cargo company. The mountain of paperwork from import licenses to full inspection reports, they have it down to a tee, enabling a streamlined, efficient process for your organization.

In-house quality

How often have you had a shipment stuck only to be told that you don’t have the correct paperwork? Thrd party quality inspection services - customs paperworkTraditionally an inhouse team often releases inspection reports as and when they receive them causing major delays, this is often due to in-house QC teams needing to travel extensively, which means they don’t have enough time to make the approvals that are needed for the shipments to be released in a timely manner. Not to sound repetitive, but to have an in-house team that has the capacity to manage the logistics involved with shipping would be a dream, no doubt, but getting through customs safely stems from being efficient in all the other points I’ve made above. In-house teams without the right amount of time, resources and technical expertise will struggle to cope with issues that could have otherwise been prevented. So here’s the deal… Managing quality is a complex system that needs 100% of your attention and focus. Are you able to dedicate that kind of time and resource to ensuring just that? This is a question that many often do not want to answer, but the reality is that you often cannot afford the time and resource that goes into creating fully optimized quality systems that can produce high-quality products for your brand and on time. So, what then? It might be worth considering hiring an external third party quality provider that can give you the time and resources that you need to streamline your supply chain operations. A third party quality provider is able to provide you with; * The latest in product regulation * Technical expertise * They have the appropriate technology to streamline your operations * They have the know how on how to navigate the waters of international logistics for your brand. This will give you room to begin focusing on what you are good at; producing those high-quality products and creating a level of trust with your consumer that is globally competitive. Have experienced working with third party quality inspection services?
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Comparing the old and the new in compliance software

Maintaining supply chain compliance is an issue retailers/importers have found more difficult to navigate in recent years with an increase in pressure from consumers for more ethical products, and the digitization of retail supply chains.

Dealing with compliance issues have long been managed by manual compliance document filing procedures, which may have provided one a greater level of control in some respects in the past, but also made it that much more difficult to stay on top of one’s supply chain with all the heavy paperwork.

The need for an update in the way that compliance was documented, implemented and achieved was evident.

This brought about the advent and introduction of an online compliance solution. Web-based filing presented an all-in-one platform that promised greater transparency, and control over one’s supply chain in real time.

However, even with this tool there are still retailers/importers today who rely on more traditional means by which to tackle ever evolving issues that can be more readily addressed with more the accurate reporting data, flexibility and speed of an online solution.

In this blog post we will take a look at the benefits of the online compliance software known as the TCF solution over traditional compliance filing procedures, in the hope of showcasing why bringing supply chain compliance into the online age is a must for your household goods business.

tcf_software_vs_traditional_compliance (2).jpg

Often times retailers locally and globally are unaware of the options that are available to them, and also what benefits they can have for their organization. This often leads to sticking with what you know, sticking to a solution that may not always have the best ROI for your organization.

Why is this TCF solution right for you?

TCF is an online compliance software solution that:

  • streamlines your compliance and regulatory operations
  • provides actionable insights into the performance of your suppliers
  • allows insight into areas of risk that you may not have seen before
  • is extremely cost effective and efficient

The kind of visibility that a solution like this promises goes very far to help increase your productivity, therefore having a positive impact on your ROI.  

Learn more about the TCF solution API provides for household goods here!

Achieving compliance traditionally is a challenge right from the start. The constant back and forth communication with your suppliers, with a flood of emails to your inbox to constantly keep track of, to the unreliable manual entry spreadsheets. There is too much room for human error here to remain as productive as what consumers today are demanding.  

The digital landscape we find ourselves in is all about keeping up with the constant demand of the retail supply chain. If your current compliance systems are holding you back with errors that can be avoided easily, then your supply chain may not be as competitive or as productive as it likely should be.

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Compliance issues? You need this online software

Completing a Technical Compliance File as we know is a requirement by regulation. Consolidating compliance documents is an immense challenge and is a web of complexities that often creates confusion and uncertainty. The many rules and regulations that are needed for a specific product to attain a certain level of compliance are so complex that it can be unclear on how to begin addressing them let-alone having the in-house capabilities to begin addressing them.

“Is there a solution to this web of complexity?”

An in-house developed, web-based platform with 24/7 availability and safe storage of your documents has been created. A platform like this can create immense value for retailers, importers and quality directors, helping to alleviate some of the compliance pressures and complexities by keeping everything in one place.

In this post, I interview Aurelien Dalle, Chief Operating Officer for API, where we endeavor to uncover some of the frequently asked questions surrounding this new compliance software, and the benefits that it can provide for brands that struggle with compliance issues brought on by missing, incomplete or incorrect documentation.  

Q: What are some of the common challenges that organizations face with TCF and compliance in general?

  • There is often difficulty in having and keeping all the product, standards and regulation expertise and regulatory watch internally as more often than not it needs technical experts in many different fields to assist.
  • There is difficulty in keeping track of the documentation with no proper IT system for support and often relying on many emails and excel files for documents.compliance issues.jpg
  • In many organizations, the quality team is small. In some instances the only teams big enough to support such task are within the purchasing team and even then they are often in need of assistance from the laboratories for advice and judgement regarding compliance and quality in general.
  • That it is a huge and tedious task to map out the requirements for each product and to contact the suppliers to collect the all the documents. It can also be a wearisome task to review 50 page documents all in one day.

Q: What is the follow-up action after applying the TCF service?

  • If the client is unaware of the standards and regulations that are applicable to complete a TCF, the API TCF team can define and give recommendations on the scope of compliance (mandatory standards and technical documentation as well as recommended performance requirements) of the product for its destination market.
  • The API TCF team start contacting the suppliers by providing them access to the database and inform them, through the TCF tool about the exact requirements applying to the products so that suppliers can begin uploading the documents, should they already have the documentation on hand, otherwise the supplier will start arranging the necessary testing in laboratories.

Q: How can an organization benefit from this compliance software?

  • The TCF tool provides centralized information, that is available 24/7. We offer technical expertise from the API lab and automatic statistics to monitor specific supplier performance. There are also organized reminders embed in the system, tracking all sort of activity and dates within the tool.
  • Tracking of standards/documents validity and expiry dates and versioning, so the same file does not need to be re-checked for the following orders.

Q: What is the turn around time of a completed TCF?

The turnaround time is dependent on the supplier’s performance, so generally it can be from 1-2 weeks all the way up to 2-3 months. It can sometimes be more as some specific endurance tests span over several months.

Q: What are the benefits of using a web-based platform?

This software and its information is centralized and can be accessed from different countries. It minimizes the amount of emails sent and received while also reducing the number of collections of large documents. These documents are also then automatically and properly archived for each item.

Q: How do you ensure document security and confidentiality?

There is password protected access and secure encrypted pages that guarantee confidentiality. Therecompliance software - safe storage is also a dedicated IT team to ensuring the safety of the software and only API employees are allowed to make modifications to the platform.

There are many benefits to this TCF compliance software, an all inclusive solution that is able to streamline all of your compliance issues creating operational efficiency for your brand, increased visibility into your supplier and their performance as well as being able to mitigate against any unnecessary risks. 

An informative interview that has been able to clearly define the benefits of this solution do you have thoughts or questions regarding this? Contact Us!


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[VIDEO] What is a Technical Compliance File (TCF)

Compliance and regulation has changed so much over the years with far more stricter regulations required for retail products today than ever before.The changing landscape has meant the very nature of compliance has become rather complex and difficult to achieve without adequate knowledge and expertise.

Compliance solution documentsMany of the compliance complexities that arise are in the collection and gathering of all the necessary documentation. Many manufacturers, importers and retailers today are still operating on outdated systems like spreadsheets, creating unreliable data and documentation, which creates an almost insurmountable task trying to maintain the information for each product reference.  

Often times professionals find themselves in a position of begging and pleading for documentation with nowhere to turn but to wait on the slow turning wheels of doing everything manually. Data, technology and cloud-based systems and solutions are where supply chains are headed.

Today’s consumers dictate the level of safety and performance they need to make a purchase of your product; this can either be seen as a challenge for your supply chain or as a golden opportunity.

What if there was an all inclusive compliance software that could streamline all your supplier and compliance operations in one place… accurately and reliably?

In this post, we seek to uncover the Technical Compliance File (TCF) solution – A compliance solution that will help relieve many of the compliance pressures that your supply chain currently faces.

What is a TCF?

Why a TCF?

At this point you may be wondering about the exact operating of this system, and what kind of benefits a compliance solution like this can have for your current operating systems. So let me tell you;

There are a number of reasons why retailers are in preference for this solution;

  • Technical expertise – There are dedicated teams to review what exact documents are required for the products and that the documents received are exactly what you are in need of, including all follow up with any supplier or factory that may be delaying you. These experts are also able to give technical advice where necessary, ensuring you don’t find yourself in a sticky supplier situation that can easily be avoided.
  • Online 24/7 access – The TCF solution has a 24/7 online dashboard with real-time updates allowingTCF compliance software you insight into your compliance status whenever you need it. There are also progress charts allowing you actionable insight into timelines and your supplier progress. This solution is also able to store all your documents for up to 10 years, ensuring your documents are safely stored for any future reference.  
  • Transparency – A solution like this can provide you with a real look into your supplier and/or manufacturer’s status in the workplace. It provides invaluable insights into the kind of supplier you have chosen to work with as you can track their compliance and regulatory progress online. 
  • Visibility – This allows you insight into what tests are being done and achieved in the lab, placing you in a better position of understanding the level of compliance your products are achieving.
  • Additional custom services – In having the expertise to analyze and determine the exact compliance and regulatory documents you are in need of, there are other custom services that can be offered if you find yourself short of an audit or specific product test that you need done to form a part of your TCF.
  • Separate supplier reporting – You are able to access reports on your organizational progress, but also your supplier’s progress. Your supplier is given access to a separate dashboard, so your information remains confidential.
  • Cost reduction – Streamlining the incredibly complex compliance process into one solution will be cost effective for your brand. Let me break this down for you; As mentioned earlier, a TCF is required as part of regulation, you already know what the process is in collecting documents from your factory, and all the follow-up communication that is required to get your documents. It’s often difficult and complex with little or slow results.

Regarding product compliance, let’s say for a furniture retailer, each item may need up to 30 documents (without counting all the submitted and rejected docs, which can be even more) to demonstrate compliance just for that product. As a retailer, you likely have more than 1 item that needs to achieve compliance, and with every document that is needed, each could take up to 30 minutes to evaluate properly, which equates to about 15 hours for just one product! If you have a whole range of products, you can begin to see how costly this whole process can become.

Risk Mitigation – The insight that this solution can provide into the most vulnerable areas of your supply chain can be invaluable information. The information that you will have access to should alert you to potential risks early on, allowing you the time to mitigate those potential risks. 

Enhancing your current quality management systems to include a web-based solution like this can set your brand at a benchmark above the rest.Compliance software web-based solution

As supply chains are increasingly becoming more digitally adaptive with cloud-based operating systems, it will be necessary for you to analyze your current solutions to be more adaptive to the current supply chain climate.

A comprehensive solution like this can create an operational efficiency for your supply chain that may have never even crossed your path. The benefits and increased visibility into your supply chain will be invaluable to optimizing your current quality systems.

In a better place of understanding this web-based solution, do you have thoughts or questions regarding the TCF? Leave your questions in the comments section; I would love to engage with you on this.

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Quality Vs Compliance – The Case For Supply Chain Synergy

The age old debate of quality vs compliance or compliance over quality is something that we still wrestle with today. By defining what these concepts mean, we can start to paint a picture of why one may take precedence over the other in your eyes: Quality – This specifically refers to the ability of a product or service to consistently meet and exceed customer expectation from its design to its functionality. Compliance – This specifically refers to whether or not your product meets specific product compliance regulations so as to be responsibly bought or consumed by a customer. Now, depending on your brand’s positioning and goals, you will likely be placing value on one over the other, putting your brand at unnecessarily high risks that can result in avoidable costs for you. “Does it really have to be one over the other?”  When quality and compliance are able to strike a harmonious balance within your supply chain, you create operational efficiencies that are able to create opportunities for growth in the marketplace, something your brand can benefit from by setting you at a bench mark above the rest In this blog post, we seek to uncover the importance of both quality and compliance and the benefits they have to manufacturers, suppliers and retailers all over the world, ultimately taking a closer look at what the perfect union of these two concepts can mean for you.

The case for quality

When one speaks of the quality of a product from a manufacturing perspective, it refers to the external review of a product. It seeks to satisfy consumers through its quality with regards to design, functionality, durability and aesthetic appeal. Quality vs compliance - aesthetic furnitureThe quality of a product can be defined in many ways and is almost always dependent on your specific consumer and their definition of quality for your specific item. So in that light, you will need to know exactly what your consumer is looking for to create the quality your brand is looking to achieve. When a consumer sets out to look for a quality product, they want to feel as though they have paid less than what the actual product is worth, the quality of the product far surpassing the amount they ended up paying. Fulfilling the need to exceed the consumer’s expectations, this is what true quality is all about. If fulfilling the need to meet your consumer’s expectations is at the top of your company’s agenda, is it not essential for your brand’s products to meet a level of quality that does just that? Let me leave you pondering that for a bit. In attempting to understand your customer’s definition of quality, it will be important to note that fulfilling consumer expectation and experience forms a part of that definition. Let me give you an example; If a consumer orders a product that has met and passed all quality tests it needed to meet, that product for all intents and purposes is a quality item. But, if the order arrives later than promised or arrives with a missing screw or the incorrect color, the consumer may not define this product as an item of value and quality. Striving for product quality is a stems right from the raw materials used, to the way in which it arrives to your customer, therefore every step needs to be taken into consideration.

The case for compliance

When a brand takes on compliance, it seeks to meet the minimum regulatory requirements specific to a product or item sold to a retailer. This may mean that although the product is not of the highest quality, it at least meets the minimum mandatory regulation requirements specific to it. Depending on your product’s destination market, it will likely need to comply with one or more of the following; * Product safety regulations * Substance regulations * Document requirements * Labeling requirements * Testing requirements You do not have to comply with all of these; as it will depend very much on your product and the market that it needs to enter. The importance of compliance is highlighted none the better than with the recent global Quality vs Compliance - Fidget Spinnerscraze of fidget spinners and, where 200, 000 of these spinners have been recalled due to it massive non-compliance failures. Many of these items that are being imported have been found to be non-compliant with the regulatory requirements specific to its markets. This is becoming a big problem as they have also proven to be a danger to children as the small parts they are made out of can and are causing serious harm. Where the confusion sets in, is that a product is capable of being compliant, but also not be the best quality product. The opposite is also true; you can have a quality item that does not meet all the regulatory requirements either. An issue like this can often arise within your supply chain whether it be in the design process, or even within the manufacturing process. This can create a high level of risk for your brand, and could land you in a position you do not want to be in.

The case for supply chain synergy

So as the debate goes, we seek to uncover the myth that quality supersedes compliance and vice versa. They need to work together, hand-in-hand, where they can create true value for your brand through optimized quality procedures from your factory to the consumers. Striving for compliance means to create operational efficiency for your supply chain. This means continuous improvements for your brand and its systems. These improvements can take the form of a compliance program which will begin to address the quality procedures (operationally and product quality) of your entire supply chain. The improvement of these systems will mean that you reduce your exposure to risk and also create a more visible and transparent supply chain, which consumers today base their buying decisions on. Always keep this in mind. A compliance program will also extend into the manner in which you select your supplier and evaluate the factory that your product will ultimately be made in. Ensuring that your supply chain is compliant will mean that you are essentially creating quality operating systems. Quality operating systems will mean that the product you produce is being made in the most optimal environment. A well-functioning environment where quality and compliance is a part of every operating system will flow into the very essence of your product, making consumers want to purchase your product at a price that they feel is undervalued for an item of such great quality Today’s consumer is empowered with access and knowledge into your product and your supply chain;Quality vs Compliance they want to know where its raw materials were sourced, how it was made, who made it and what its level of quality is. They ask themselves whether or not your product will be an investment in their lives. The key here will be to know your target market, know your consumer. If you do not know what they want, you will struggle to be their go-to brand; you will lose out on their brand evangelism and praise affecting your bottom line “Is this the type of brand and product you wish to create?” Retailers today are under so much pressure with the current supply and demand of products, that quality and/or compliance is not always a priority. “But, it should be!” Bad quality and non-compliance both mean that your brand is at an unnecessarily high risk with regards to meeting regulations and your reputation. It will be worth all the hard yards that you put in from the creation and design to the manufacturing and distribution of your products. This will help mitigate unnecessary risk, saving you money and precious time.

Conclusion

These two concepts can be integrated into your supply chain through a Quality Management System – “QMS is a set of policies, processes and procedures required for planning and execution of a product or service.” This should help you create a structured system for continuous improvements that can be made to all areas of your supply chain and its operations. Today’s empowered consumers show us just how important both quality and compliance are for your products and brand. It will be important to make these a priority in order to maintain that globally competitive advantage. If you are interested in learning how to build a compliance program that also addresses product compliance within your supply chain take a look at the eBook we wrote on how to go about doing just that.

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