Given the likelihood that the country is slipping into a deep recession, it is only natural to ask yourself, "Does it make sense for my organization to invest in ISO registration now?" The answer may surprise you - "YES, now more than ever!"
Now is the time that you need to enhance your competitiveness and open new markets. ISO certification
helps to accomplish both these goals. In the business-to-business market, many companies require ISO certification just to be considered for contracts. They recognize the value of dependable quality in the products and services purchased from vendors. And nothing conveys a commitment to quality like achievement and maintenance of your ISO registration.
As the economy tightens, prime contractors are likely to narrow their list of suppliers to those who have ISO certification. Competition for business will get tougher. Those without a certified quality management system risk finding themselves left out in the cold.
And some industries already require ISO registration just to be a player. Suppliers to major aerospace firms have previously been encouraged to acquire ISO 9001 or to upgrade to AS9100 registration. With increasing competition this is becoming a practical requirement to effectively sell products and services to aerospace and aviation defense industries.
Being ISO certified also opens new markets. As with the above examples, many organizations now require (or prefer) ISO-certified companies as their partners or vendors. Moreover, demonstrating ISO credentials is fast becoming a prerequisite to international marketing.
Whether your organization is considering ISO 9000, AS9100 or ISO 14000, another reason to proceed is to cut costs. Once documented procedures are established for manufacturing parts or providing services, cost reductions
invariably follow. Wouldn't it be nice to be able to enhance productivity and possibly reduce personnel expense or achieve more with the same number of employees? The elimination of material or environmental waste, costly mistakes, re-manufacturing and customer returns also creates savings that fall directly to the bottom line.
And with competition heating up in a slow market, satisfied customers are likely to remain your customers. The importance of customer retention in a recession cannot be over stated. Even if business drops off, you need to retain your core customer base to generate cash flow and be prepared to reap the benefits of an inevitable economic recovery.
The bottom line is that ISO registration helps organizations to streamline procedures for revenue generation. It also provides credentials with worldwide recognition that demonstrate a commitment to high quality. Customers and prospects feel more comfortable doing business with organizations that have achieved this "Good Housekeeping Seal."
Ultimately, the return on investment in ISO registration can be measured in terms of increased business and reduced costs. Studies have shown that a break-even on the initial investment in ISO certification is achieved within a relatively short period of time. Thereafter, the benefits are reflected in subsequent financial statements. In short, deciding to acquire ISO registration is an investment in the future of your organization. And in a recession, it may be key to survival.