When it comes to operating and growing a successful business, the ultimate goal is to create loyalty among consumers and establish a positive brand reputation. What keeps customers coming back to a business is knowing — and expecting — they are receiving a high-quality product. For that reason, quality management must be top of mind for any forward-thinking manufacturer. Sometimes deemed a nice-to-have rather than a necessity, quality management must be embedded across an organization in order to streamline operations and reduce the risk of poor quality products.
According to a report from Allianz Global Corporate & Specialty, defective product incidents have resulted in over $2 billion in insured losses over the past five years. While a product recall can cost a company millions in lost revenue, the larger associated cost comes from losing customer loyalty and tarnishing brand reputation. Leading manufacturers mitigate the risk of lost revenue, recall costs, and negative brand impact by viewing quality management systems as a necessary preventive measure and proactive strategy, rather than a reactive solution.