ISO 9001: "Say what you do. Do what you say. Prove that you have done it!"

by James Goldstein, PhD, IMSM Business Manager

Reverse Logistics Magazine, Spring/Summer 2006

ISO 9001 is the most important quality management system in use today. A company that holds ISO 9001 is telling its customers and the world that it has a top quality management system and is totally committed to quality products and services. Companies that go through the process find that profits increase thanks to opening up market opportunities. Also costs reduce due to improving efficiency.

Reverse Logistics is an ideal candidate for a quality management system. Your business of controlling the flow of materials and information from the retailer back to the warehouse is a process driven, supply chain operation with customer focus that is well suited to ISO 9001's attention to improving process and delivering quality service to customers.

ISO 9001 is a standard that is respected worldwide and many prospective customers now require their suppliers (and their suppliers' suppliers) to have ISO 9001 certification. You are therefore more likely to win additional business as an ISO 9001 certified company. Cost reductions result because once the company has been through the ISO 9001 certification process you will be running a tighter ship.

A recent survey commissioned by IMSM revealed that over 80% of the main problems facing businesses were in areas where certified management systems can help. These included poor quality control, staffing problems, purchasing policy problems, process management and cost control.

The ISO 9001 process addresses these problems because it requires the business to take an objective look at its systems and processes. It streamlines and documents them. It identifies where efficiencies can be made to drive up profits and lower operating costs. There's a training and motivational benefit too as staff will better understand how the organization works.

ISO 9001 quality system standards identify the features which help you meet your customers' requirements consistently and then evaluate how and why things are done the way they are. Think of ISO 9001 as a two-step process. First, examine and refine your existing processes to reach the ISO 9001 standard. Second, once you have ISO 9001 certification, include it in your marketing to show your customers your dedication to quality management.

The first step is a benefit in itself as it requires you to take a hard look at quality management within your organization. It involves assessing your current procedures to audit where you are meeting the standard and where not. The new procedures can then be documented, implemented and a Quality Procedure Manual produced. After the trail run of an internal audit and review to ensure you are ready, the final step is an external audit of your manual and systems by a recognized ISO 9001 body. If you are successful, the result is ISO 9001 certification. You can then move to step 2 and start marketing your new ISO 9001 certification.

If you thought that ISO 9001 means excessive red tape and paperwork you would be wrong. Your company probably already has a system for doing business that is already effective, but is perhaps informal and undocumented. The ISO 9001 process starts from your existing systems, is flexible and grows with your business. Changes and additions need only be made if required to meet the standard. It is advisable to work with an ISO 9001 specialist company who can guide you through the process in a way that is both time and cost efficient. Look for one that offers a fixed fee and fixed timescale plus experience of your industry sector.

Quality management systems help Reverse Logistics companies by:

• opening doors to tenders restricted to certified suppliers
• increasing customer confidence because fewer mistakes lead to fewer lost orders
• reducing costs because quality systems mean less waste
• being already in place when the company expands
• increasing employee morale as a by product of high confidence in the company.

Turn-key logistics services, such as warehousing and shipping services, are critical to removing the friction of reverse supply chain product flows within an organization. By outsourcing this portion of the reverse process, supply chain managers will save time, resources and valuable warehouse space that can be used for new goods in the tier one sales channel.

In any organization, ISO 9001 controls quality and brings clear financial benefits. It also gives customers a high degree of confidence and assists in keeping the organization ahead of its competitors.

About the author: James Goldstein, PhD, IMSM Business Manager. James is a resident New Yorker managing a team in the metropolitan New York area for IMSM, the quality systems specialists. He focuses on medium-sized businesses that supply major corporates helping them acquire ISO standards for Quality, Environment, OHSAS, Occupational Health and Safety and IT Security.

Reverse Logistics Magazine, Spring/Summer 2006