2 Ways To Ensure Supply Chain Compliance

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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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10 things you will learn from a third party quality provider

Do you feel that no matter how much you plan, the maze of complex logistics is always catching up with you? Successfully running your quality systems is key to the success of your entire operation. As you try to stay on top of your logistics, resources, planning and strategies within your supply chain, you may have never considered the hiring of a third party quality provider. In this blog post, we endeavor to look at how you can benefit from hiring a third party quality provider:

1. Expertise – A third party quality provider has a wide array of clients creating an extensive network and a wealth of knowledge that will all be put into providing you Third party quality provider - expertise.jpgwith efficient quality procedures. They are also up to date with the latest developments in the industry along with the best practices to follow. As a result, you have all the expertise and knowledge about your quality procedures at your disposal; this can be invaluable to your quality and logistics procedures.

2. Efficiency – A third party quality provider has the infrastructure to manage all the logistics you require from all the certifications and documentation to the technology that is needed to ensure you receive a delivery on time as well as a product of a high quality. Apart from just managing the logistics, they also come with all the technical experience from having local product inspectors and an extensive network to create that efficiency in the logistics that you require.

3. Technology –  The use of appropriate technology and software to optimize your supply chain may be too expensive to have in-house, therefore leveraging the technology that a third party quality company can provide may be the way to go. They can save you time and minimize your risks through inventory tracking, warehouse management and can furnish you with quality compliance certification according to your specification.

4. Accountability – Upon meeting with your provider, it will be important for you to agree upon a set of expectations that will need to be achieved, a document like this will help to hold you both accountable to the operating procedures and their successes. It will also be important for your quality provider to show whether or not they can deliver on these set expectations.

5. Innovation – With their expertise, they are able to meet and fit your needs in the way they see best fitting allowing them room to innovate to achieve the best possible results for you and your operating procedures.

6. Optimization – Along with the technology and software that they use, they are able to identify potential risks before they happen and are able to continuously make improvements along the way. Continuous optimization is key to the success of any quality and supply chain procedures.

7. Network – The network an outsourced organization has can be extensive, providing your company with the best value for your money as well as a tried and tested networks to conduct your operation effectively and efficiently.

8. Risk reduction – Through the resources and technology they have, they are able to minimize the risks you would normally experience. They will have the ability to identify potential risks early on, allowing enough room to mitigate if needs be.

9. Flexibility – Outsourcing has the flexibility to adjust to the rapid changes, movements, and complexities that are experienced within the supply chain. To manage those kinds of changes internally may even be the cause of risks within the supply chain.

10 things you will learn from a third party quality provider - International Logistics

10. International Logistics – International export and import require a fair amount of logistics and management to make sure your product gets to you safely and in good condition. An outsourced company is capable of managing all of your international logistics from factory inspections and compliances to the testing of your product internationally.

Outsourcing your quality and logistics procedures will have effects for your bottom line but can also create the opportunity to enhance your brand’s quality, credibility and efficiency helping you to maintain a competitive advantage within the market. As you consider your current logistics and quality processes you may look at the benefits of outsourcing this next time round.

Ready to begin optimizing your quality procedures today?

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How purchasing departments benefit from better QMS

The harshest judge of the quality of a product is your customers. As a households goods quality manager, it is your responsibility to ensure the systems and procedures you have in place, run as smoothly and effectively as possible. In this blog post, we look at the role of a quality manager and the benefits of adopting quality management systems as a part of your supply chain strategy. It may be necessary, to begin with, an appropriate definition of the role of a quality manager to help put perspective on how they can assist purchasing departments with their quality systems;

A quality manager’s role is “concerned with monitoring and advising on the performance of the quality management system, producing data and reporting on performance, measuring against set standards.”

Understanding the role of a quality manager leads into understanding what a quality management system (QMS) is:

“A QMS is a set of policies, processes and procedures required for planning and execution of a product or service.”

Quality management systems - Management-1.jpg The purchasing department of any organization has many functions from procurement of raw materials all the way through to the load testing of various household goods through to policy compliance. Each of these components requires the leadership and technical skill and know-how of a quality manager to ensure the entire procedure is run effectively and according to set quality standards. Quality managers can improve the quality systems within purchasing departments by ensuring there is a set of quality standards and metrics that need to be achieved, these standards can be anything from load testing results, to the delivery times of material or of the end product. It is essential to work closely with purchasing departments to develop relationships and collaborate with suppliers. This will have results for the quality of your systems and your end product.

Check out our comprehensive guide on optimizing your quality assurance systems.

ISO 9001: 2015 ISO 9001: 2015 is an example of a QMS, which is a set of requirements a supplier needs to comply with to consistently meet specific requirements and that they also meet a specified set of regulations. Applying this ISO standard can have significant benefits for your brand, let’s take a look at some of the key benefits it can have: 1. Improvement of your credibility and image Quality management systems .jpg Every brand strives to increase their credibility within the global market, this standard can help you maintain that competitive advantage, as suppliers who have this standard are often selected over and above those who do not. 2. Improvement of customer satisfaction – At its very core this standard is about the improvement of customer satisfaction, through thorough planning and efficient implementation where the end user is satisfied with the functionality, quality of the product to the way in which it was delivered. 3. Better process integration – By understanding and analyzing your processes you will clearly be able to find improvements that need to be made. These are based on hard that is collected to make these improvements to your procedures. 4. Improve your evidence for decision making – Evidence-based decision-making is based on hard data. Decisions can then be made based on data which can allow for proper allocation of resources and in turn having cost benefits for your brand. 5. Create a continual improvement culture – By instilling a continuous improvement cycle within your buying office, you will not only increase your outputs, but also the quality and standard of your procedures and end product, and also creating that customer satisfaction. A Quality Management system is essential to ensuring quality household good products and the processes that come from your purchasing departments. This will provide accountability and sustainable relationships with your suppliers as they strive to meet a set of global standards. This can have far-reaching implications for your brand. What is your experience in adopting a QMS within your purchasing departments?

Are you ready to begin optimizing your quality procedures?

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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.

There are More Lessons To Be Learnt In This Case Study!

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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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7 Steps To Prevent Product Defects in Household Goods

Finding a surefire way to prevent product defects and reduce them to zero is what good dreams are made of, but, sadly, the reality is usually closer to somewhat of a living nightmare for most importers. The hard truth is that without taking a systematic approach to tackling the production aspect of your supply chain from the very outset it will put your entire operation at risk. In this post we seek to help outline 7 specific steps that you can take to minimise the amount of product defects that you experience during your entire production process, all in the hope of preventing product defects, but also helping you take a more collaborative approach to dealing with your suppliers. When things start to go wrong It may happen that you’ll receive a batch of products with the incorrect dimensions, the wrong color stitching on a couch or become aware that the incorrect tests were done, resulting in non-compliance and regulations not being met. Meanwhile… Your shipment is now delayed (or worse), possibly stuck in customs and the mountain of problems and paperwork just keeps stacking up, a domino effect of production issues with no light at the end of the tunnel. So, what can you do to prevent product defects all together? It all starts with these 7 steps:
  1. Communicating product requirements with your QC staff and suppliers
  2. Communicating your specific requirements for packaging
  3. Defining onsite tests and inline tests with your supplier and factory
  4. Defining your classification terminology with your supplier
  5. Establishing a perfect sample
  6. Conducting DUPRO quality control
  7. Conducting after production quality control

Communicating your product requirements with your QC staff and suppliers can help prevent quality defects

Communicating your product specification with your supplier is essential to safe guarding against product defects. Steps to help prevent product defectsProduct specification can look anything like your products dimensions, the volume, it’s weight, the color and any specific labeling that it may need to meet regulation. In your specifications you need to ensure that you are as specific as you can possibly be, from specific color palettes to the maximum weight of an electric blender. The more specific you are, the easier it will be for your supplier to meet your specifications. These specifications will also provide your supplier’s quality control team with a standard/guide to monitor the production of the item appropriately. This is where the in-house vs outsourced inspection arguments come in. You need to establish whether an in-house team is fully capable of conducting all of the appropriate tests and reporting that is needed for your product, or whether it will be of greater benefit to outsource the professional expertise to a third party quality provider. As an importer, you need to ensure that you are up to date with all the latest regulation that is specific to your product. Are you? {{cta(‘37580c78-0398-44e8-8f88-7682a9c94777′,’justifycenter’)}}

Communicate your packaging requirements to Prevent product defects

Your product needs to meet packaging requirements when shipped. This will often mean that all the necessary documentation will be present and/or visible on the package during the import and export customs process. You need to specify the packaging requirements and what exactly needs to be present on the outside of the box. This will safeguard against possible damage during shipment, ensuring their safe arrival. Packaging requirements to prevent product defects

What onsite tests and checks will you be doing?

Your quality control team, whether an in-house or outsourced team, have to be informed about the types of quality tests that need to be conducted on site. Once you confirm what tests are needed, your inspection team will need to know what testing equipment is needed per product. An electrical juicer for example will be tested differently to what tests will be needed for other product categories. If you choose to use an experienced third party quality provider you will be able to leverage their technical expertise, for example, the exact type of load testing that may be needed for a couch that is destined for the European market. An experienced third party provider will also have labs with controlled environments and all the right equipment to test your product, along with the constant monitoring of any updates in regulation that you may need to be aware of.  

Have you agreed upon the defect classification terminology?

Many importers choose to use the following classification terminology when dealing with their suppliers:

A critical defect – This is defined when the product may cause possible injury or harm to the end user. This product’s safety is compromised.

Preventing product defects - lab testingA laptop’s battery overheating that when unattended whilst charging can cause fires would be classified as a critical defect.

Where the product in question can cause injury to the end user, this results in product recalls and is hugely damaging to your brand.

A major defect – This is defined when its condition will affect the sale of the product in the marketplace, likely resulting in the end user returning it with dissatisfaction.

A coffee maker that does not heat the water adequately to make a decent, drinkable cup of coffee is classified as a major defect.

This product has caused dissatisfaction amongst its end users and they then return it to the store, likely reviewing the product online, which will have an impact on the future sales of that item.

A minor defect – This is defined when its defect is small, and will not affect its saleability in the marketplace and does not pose any harm or injury on the end user.

Take a wooden coffee table for example. Your quality control teams takes the product through its tests and they come across a scratch underneath the table.

This is a scratch that your end user will not see in normal use of the product or may never even see it for that matter. This is what we would classify as a minor defect where this product will still go to market as it will not cause any damage or harm to the end user.

But that’s not all…

What about a sample? I have left obtaining a sample for the end…as some importers don’t require a sample before production. While this is not a necessity, by adding this into your production procedure it can help you significantly reduce product defects that come from your selected supplier and factory. Once you have established the appropriate product requirements, you can then request a sample from your supplier. Once you receive your sample you need to analyze it and ensure that it meets all of your requirements, and then send it back to your supplier with either a confirmation to go ahead with your production, or with a list of further specifications that they need to meet. Well, what happens if it doesn’t meet your requirements? Samples will not always meet your specified product requirements. Often times you can catch this just by holding or looking at the product. But, more often than not a substandard product of will reach the end consumer opening your brand up to severe damage and risk. Preventing product defects - testing tools Therefore an important question you should be asking your supplier before all this is, how they will go about preventing any quality issues that may arise during your operation? Understanding how your supplier handles quality pressures and compliance procedures will help define what kind of relationship you have with them. Before mass production, your supplier needs to provide you with a technical compliance folder (TCF) which must contain full compliance reports from physical safety reports, to chemical safety to electrical safety. For any missing reports, your sample product will need to go through all of the testing procedures that is required to meet specific levels of compliance for your destination country. If after being tested and analyzed it does not pass the minimum requirements needed for the product, your factory should be able to provide you with a root cause analysis to address what went wrong and then advise on any corrective or preventive action plan. From here they will be able to make the adjustments as needed and you may also want them to send you another sample after they have made the adjustments that you specified.  

How to manage quality during your mass production process?

During the production process, there is often a variation in the quality of the products. This is why you should be employing a factory quality control team to minimize this scope of variation. This team does this through inline production checks that will identify any defects that can be amended on the production line. During your supplier selection phase you would have done an analysis on the success rate of your factory. This will help you determine whether or not you should outsource your inline inspections to a qualified third party quality provider. Their production line expertise will help raise the level of the overall quality system of the factory, therefore minimizing the number of product defects coming out of the factory.  

You can also secure the quality of your production through final inspection controls

preventing product defects - Sample test Managing product defects can also be addressed after mass production through a Final Random Inspection to check to filter out any last defects within your products. Often times samples are drawn after mass production for chemical testing and again during your first shipment and also in the case of a re-order shipment. Doing chemical tests on samples during these three stages is a way of ensuring that your products are still in compliance as contamination may have occurred on the production line or during your shipment process.

Key Takeaways

Product defects are not ideal, suppliers hate them as much, if not more than you do. By following the guide laid out above, you will be setting a solid foundation on which to begin minimizing the amount of product defects that you experience. So let’s round this all up:
  • Communicate your product requirements
  • Communicate your packaging requirements
  • Defining onsite tests and inline tests
  • Defining your classification terminology
  • Establish a perfect sample
  • During production quality control process needs to be defined
  • After production quality control process needs to be defined
By following the steps as laid out above you will be achieving products of the highest quality every time. An insider’s tip! Build a collaborative relationship with your supplier. An often underrated element of preventing product defects is building a good collaborative relationship with your supplier. Go out of your way to develop this and it can have long term benefits for your organisation and the products that are manufactured.

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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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