7 Proven Benefits Of The Implementation Of ISO 9001:2015 Standard
Streamline processes, lower wastages, higher customer turnover, repeated orders, more sales, and more profit are some of the benefits of the implementation of quality management system ISO 9001:2015 in any company. The logic of these benefits will be discussed in this article in detail.
Being an ISO consultant from the last two decades this is the most asked question when I visit any company to propose the implementation of ISO 9001. The top management often asks about money matters and profitability while making the decision on implementing ISO 9001. The overall cost of implementation of ISO 9001 certification is important as well as what return company will get on this investment is even more important!
The importance of ISO certification in the success and profitability of an organization is evident. There are numerous studies available online which are based on how implementation of ISO 9001 helps companies to enhance their profitability.
Search the list of top 10, top 50, or top 100 most successful companies and you will find that most of them are ISO 9001:2015 certified. Here I am naming some organizations, coincidently they are all blue-chip companies as well (for your information, blue-chip companies are those companies which have a good market reputation and the past experience is evident that they are able to work profitably in good and bad financial eras):
- IBM
- Microsoft
- Disney
- American Express
- Johnson & Johnson
- McDonald’s
- Coca-Cola
- Starbucks
- Nike
- Walmart
- Amazon
Below we have compiled benefits the company will get when they implement this standard:
Streamline the procedures
As we have mentioned in the previous section; to streamline and align all the procedures and to avoid haphazard way-of-working companies find that the best way to accomplish it is to implement ISO 9001 quality management system. The overall structure of the ISO 9001 standard will put all the pieces of the organization like a solved puzzle when executed. Even some people say that learning ISO 9001 is like doing a mini-MBA that is the reason even if a business owner is new and with no prior knowledge he can study and implement this standard and can bring agility to his own firm.
Proper documentation
A better management system means a proper documentation mechanism and vice versa, it will look weird if for the same kind of task a document has different formatting in one department and entirely different in another. Moreover, a proper documentation system is necessary for everyone in the company to understand what they have to do and how they can do it. Documentation is one of the benefits of implementing quality management system.
Boosted customer satisfaction
Customers love uniformity. If you have consistency in your services, customers will likely be satisfied and order again. Imagine if you invite someone to a restaurant and found out that the taste and quality of the food are not like what you had experienced before, would you be satisfied? Certainly not! “Consistency” boosts customer satisfaction and randomness kills it! To have a better customer experience you must have uniformity in your products and services.
Increase in sales
The more customer satisfaction, the more will be the rate of customer return, and more repeated orders which will increase company goodwill. This is because customers who are satisfied will likely refer more customers and in this way, sales will boost up.
Companies are willing to do business with firms that are ISO 9001 certified because they are looking for suppliers who can provide good quality material consistently, and this is possible for QMS certified firms.
Increase in profitability
The improvement in the overall system will lower the wastage, overburdening, inventory, and quality defects, thus fewer customer complaints and customer returns, which will enhance profitability. The company will be able to demand higher prices for the products if the quality is better. And obviously, the customer will be willing to pay a higher price if the products or services he is getting satisfy his needs.
Enhanced and goodwill
The more the quality and overall product and service consistency, the reputation and goodwill will increase and this will open doors for new opportunities.
Strong communication
An organization must have a good communication system in order to have a better end-to-end flow of information, communications usually happen between; supplier and the organization, the customer and the organization, employees and top management, between different departments and sections. A good communication system will lower the rate of conflicts arising between these interested parties.
Benefits Of Quality Management System Conclusion
The benefits Of The Implementation Of ISO 9001 are countless, there are no side effects or disadvantages of ISO 9001. The only challenge is you have to make efforts regarding change management as change is always resisted, however through strong leadership this resistance can be nullified and a smooth transition can be done from the existing system to a quality management system.
