How Quality Inspection & Audit can reduce your Overall Cost Jan 13, 2021 at 1:16 PMViews: 60
Cost Cutting to Improve Short-term Profit
During the economic downturn, the easiest way to boost the bottom line is to cut the operation cost. The no brainer is to cut cost among the whole value chain. Of course, this may not be a good idea if the cost cutting may urge you to skip or loosen the standard on quality control. You may temp to skip the quality inspection on products from a regular supplier. This appears as a rational decision may lead to big a disaster. Accidents do happen and sometimes, once you loosen up, your counter party may loosen up as well. By cutting cost, especially on preventive activities such as quality control, it may help to make your book look good at short term but it may actual increase the overall risk level of your operation. Therefore, if you are running your own business, the good appearing short term result is very mis-leading and dangerous.
Hidden Cost of Loosen of Quality Standard
- Lost of Customer and Business Opportunity
You may loss a customer due to quality problem, with the advance of internet and social media, the news can be spread around very easily and you may lose new prospects.
- Costs incurred due to product recalls and increased inspection frequency
You may need to pay penalties to your customers because of poor product quality. Poor product quality would also increase the product recalls that reduce your overall profit. With dis-satisfied customers, they may require you to input more on inspection that will add more on your operation cost.
- Keeping High Product Quality Standard without maintaining an Army of QC Team
A lot of large trading companies maintain large in house QC team. With the down turn of economy, the pressure on cutting head-count is great. In term of cost reduction, some companies may reduce the size of their QC teams. Though it is unfortunate, they should outsource part of the work to 3rd party quality inspection and audit companies. Especially if you source your products from Asian countries like China and Vietnam. There are many professional quality inspection companies you can choose to serve your quality and inspection need.
Hong Kong Q.C. Center Ltd.
I am working for HKQCC. I find that it is a very reliable and professional quality inspection company. Its head office is in Hong Kong while has its operation offices in China, Vietnam and other Asian countries. It has more than 20 years in field experience and is well known among Amazon FBA sellers. If you are interested in sourcing from Asia and selling online. You can just checking up with HKQCC.
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