8 Potential Benefits of ISO 9001 Certification
ISO 9001 is an international standard that has specific requirements for a company’s quality management. It sets out the systems, processes, and documentation that are required for a company to incorporate effective quality management into their everyday operations. Whether your business participates in public sector tenders, you want to increase the number of private contracts you receive, or you are trying to meet regulatory requirements, ISO 9001 certification may be considered an essential component of your business.
Benefits of ISO 9001
There are many benefits of ISO 9001 and implementing the quality management system within your business. Eight potential benefits are:
1 – Some Public Sector Tenders Demand Certification
Many local and central government agencies demand that businesses have quality management systems in place if they want to tender for contracts. This has become a governmental requirement because agencies need to show that they are using public money wisely. Once your business has ISO 9001 certification you will be able to tender for public sector contracts, which can be very lucrative, long term deals. Without ISO 9001 certification, which is a globally recognised certification, it can be difficult to prove that your organisation is concerned with customer service and quality assurance.
2 – Some Private Companies Only Work With Certified Businesses
Some private companies have taken similar steps to government agencies and they demand that organisations have ISO certification. It can take months to gain an ISO 9001 certificate so gaining certification now means that you will be able to work with these businesses in the future. Private companies make these demands not only so that they can show shareholders that they are spending their budget wisely, but also so that they can be sure that they will get the best possible levels of customer service and product quality.
3 – Some Industries Require Certification
Not having ISO 9001 certification can prevent you from entering tenders or submitting quotes to certain businesses and government agencies. In some cases, however, the problems can be worse. You need to check regulatory requirements and legislative needs for businesses in your industry. You might legally require this certification to operate, and if you intend to offer services or products abroad, then you should check local regulatory requirements too. There are different regulations to follow in different countries, so do check before you set up business internationally.
4 – Insurance Companies may Offer Discounts on Premiums
One of the benefits of ISO 9001 registration is that it lowers the risk that your company faces. Reduced risk is not only desirable for your business and for customers, but it makes your business a more appealing prospect to insurance companies. You may be able to receive a discount on your insurance premium, if you can show that you have certification. If you do operate in an industry where it is a regulatory requirement, then this is unlikely to be the case, and you may have to show certification to get insurance in the first place.
5 – The Aim of a QMS is To Improve Customer Satisfaction
One of the primary aims of a quality management system is to improve customer satisfaction levels. Rather than being a trial or something that requires a lot of work, it should be viewed as an opportunity. Improving customer satisfaction greatly increases the likelihood that customers will stay with you. A repeat customer offers greater profit than a new customer, because the marketing costs have already been accounted for. Greater customer satisfaction also means that your customers will be more inclined to spread positive reviews about you, which can further increase your marketing and networking efforts too.
6 – Operational Efficiency
Quality management systems can reduce all forms of waste and they look to implement processes that improve operational efficiency. Streamlining business processes is a viable target for businesses. It reduces the amount of work that employees need to perform. It improves communication between team members and between different teams within your organisation. It reduces workload, and it also encourages constant improvement to these processes. This all adds up to a more efficient and effective business model.
7 – It Minimises Waste and Increases Profits
Waste can take many forms in business. In manufacturing and production, it may refer to the waste of materials or the waste of defective goods. In other businesses, it can refer to the work hours that are wasted, or it can refer to the waste of lost customers. Quality management systems, and ISO 9001, aim to reduce and eventually eliminate this waste. Less waste of any type means reduced overheads and this, in turn, means greater bottom line figures for your business. ISO 9001 could help you increase your revenue and reduce overheads, therefore increasing profit.
8 – It Requires Continuous Improvement
One of the core components of effective quality management is that it is an ongoing process. Your quality improvement processes should look for ways in which to make continuous improvements. The principle behind lean management is that there are always further ways to reduce waste and increase both output and productivity. There is no such thing, in quality management, as a perfect state. This means that businesses should constantly be striving to improve their processes. It also means that your business will see continued improvements in revenues and profits.
Quality management should be considered an important element in the management and running of any modern business. Whether you are aiming for ISO 9001 certification or you want to improve processes and customer satisfaction levels, the implementation of lean management and quality management will help your business to thrive.
Contact us for a free consultation if you are interested in implementing ISO 9001 within your business.