Here’s How ISO 9001 Quality Management Reduces Costs for Business

Feb 19 06:54 2021 Alex Afford Print This Article

This article attempts to explain the intrinsic role of ISO 9001 certified quality management system in eliminating inefficiencies in business and reducing costs.

Many businesses experiencing higher costs of operations have agreed that the total rise in their costs is due to inefficient processes and substandard quality of products or services. Scrapping defects,Guest Posting repetitive product recalls, giving refunds, addressing customer complaints, and undertaking product redesigns are all direct consequences of low-quality processes and products. These cause huge cost damages to a business. Fortunately, with the emergence of quality assurance certifications like ISO 9001 certification, businesses are able to take a strategic approach in managing quality of their processes and products/services and reduce quality issues as much as possible. That can result in great cost savings for a business.

A systematic and formalized quality management system (QMS) is may be an integral part of every business management today if they aim to lower their costs as well as sustain efficiency. Take a look at the facts explaining how QMS helps businesses in reducing their costs.

Quicker Resolution of Issues

Addressing and mitigating any adverse issue before it becomes a persistent one is essential for controlling costs. A comprehensive and planned QMS according to ISO 9001 requirements will help in quick resolution of quality or inefficiency issues by facilitating total visibility of processes and introducing CAPA (Corrective and Preventive Actions). Looking at the higher cost incurred by many businesses, it is evident that recall cases are mostly to blame because products were not effectively evaluated from the beginning. Thus, with the help of a QMS, you will be able to solve issues faster as it helps you to monitor all the processes from start. It integrates data from all processes across the organization and that can help you evaluate everything and identify any problem before it costs you.

Consistent Risk Management

Implementation of an ISO 9001 quality management framework also leads to continuous risk assessment and management in a business. Effective management of risks is crucial for ensuring the quality of products or services and eliminates costs that would result because of any risks.  A comprehensive QMS is designed with risk administration tools that include auditing, process evaluation, compliance with legal requirements, and on-time reporting. Auditing of processes in a business will provide you with an overall analysis of your business with appropriate data, helping you to find out any potential risks to operations or quality management. Process evaluation will also help to show you whether the effective quality measures promoted by your QMS are really contributing to reduce risks in processes and improving performance or efficiency. There are many regulatory legal requirements laid out by ISO 9001 as it is an international management standard. Risk assessment will also assess your QMS’s legal compliance so that your business does not incur any penalties or fines. Lastly, on-time reporting is established through QMS which means there is a centralized and prompt reporting system through which members across any level of your organization can notify the quality management team about any issue or risk and urge them to take immediate actions.

Easier Manage Changes

Very few businesses realize this but it is true that a QMS helps an organization to have streamlined and more easily manage changes in any aspect. In today’s competitive era, businesses have to undergo changes in their operational structure, products, or process management to meet with increasing demands or expectations of their customers. The costs of undergoing such intricate changes in operation can be high as it involves replacing procedures, the introduction of new structures, training of staff, and so on. However, a QMS can help in streamlining a change management process, eliminating uncertainties in it, and reducing the overall costs of the process. Also, a QMS will help in simplifying management of changes by keeping every staff in the loop and by providing them with documented processes and training.

Improvement in Supplier Management

Another inevitable reason for higher costs in business is poor supplier items. Low-quality materials or flawed equipment provided to them will lead to inefficient processes and increasing costs. A QMS integrates a supplier management tool which assists in evaluating all suppliers’ processes, benchmark their performance, and assess their quality management processes. Having established an ISO 9001 QMS, you can also emphasize choosing suppliers that best performing in terms of quality. Thus, it urges them to enhance their supplies and deliver them to your business with more precision.


All these factors reflect how achieving ISO 9001 certification can directly contribute to costs optimization in a business. According to quality experts, having a centralized and unified QMS can provide your business management with the ability to oversee every aspect of your operation, help you look deeper into the processes to discover the root causes behind quality issues, and eliminate them faster. All in all, a certified and practical QMS gives you an opportunity to identify and resolve quality issues as earlier as possible to ensure it does not lead to extra costs.

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About Article Author

Alex Afford
Alex Afford

Damon Anderson is the owner of a professional ISO compliance agency which guides business owners on achieving ISO9001 certification along with several other certifications. He is also a trained specialist in ISO 9001 consulting and loves to write blogs in his free time explaining the benefits of ISO 9001 quality management system for businesses.

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