Accredited certification improving business processes and return on investment for product manufacturers
Every year in Australia, approximately 650 products are recalled. According to the Australian Competition and Consumer Commission (ACCC), it is estimated there are at least 2 deaths and 145 injuries requiring medical attention as a result of unsafe products. Recalled products amount to a cost of at least $5 billion to the economy, including medical costs, lost wages, and lost productivity, not least to say the hidden costs of brand, reputation, profits or potentially criminal charges.
Accredited certification can help ensure products are safe and trusted, ensuring they meet quality standards. Accredited certification can also help solve supply chain issues and improve management systems, resulting in better business performance, increased market share, improved industry acceptance, and international trade opportunities.
The client
BCD Steelworx Ltd* (BCD) is an emerging producer of prestressing wire used in high-strength concrete structures in the residential and commercial construction industry in Australia. BCD’s product is used in high-rise buildings, entertainment venues and stadiums.
Australasian Certification Authority for Reinforcing and Structural Steels Ltd (ACRS) is a JASANZ accredited certification body specialising in steel certification and has been offering an all-locations certification service to the Steel Industry since 2013.
The problem
BCD prided itself as producer of high-quality prestressing wire; however, its reputation in the Australian market was deteriorating and customers were going elsewhere.
BCD purchases its steel from a wide variety of sources both in Australia and overseas. It regularly faced quality and mixed-supply issues with the raw materials it received, which in some cases lead to difficult and time-consuming negotiations when shipments were rejected in addition to contractual penalties when BCD’s customer projects were delayed.
BCD faced loss of market share in addition to the higher risk of in-the-field product failure and so it had been working closely with its suppliers to address quality issues whenever they appeared. Nevertheless, while things were improving, this was taking considerable resources and BCD was finding it difficult to convince its customer base. As a possible solution, BCD decided to investigate third-party product certification.
BCD wanted an accredited certification service that would provide its purchasing department with assurance that material inputs would be meet defined performance characteristics and, by displaying a JASANZ accredited certification mark on its product, it would provide its customers with the confidence to continue working with BCD.
The solution
BCD approached ACRS because it had learned that JASANZ accredited ACRS product certification would not only evaluate BCD’s product to the required Standard (AS/NZS 4627) but ACRS would also require that BCD’s material came ACRS certified steel mills.
The outcome
A year on from certification, BCD has experienced unprecedented growth in Australia and importantly it has experienced a 78% reduction in quality issues with its suppliers. John Appleseed*, plant manager at BCD’s South Australian facility said,
“ACRS certification was a significant investment in time and expense for BCD but I can say that it has all been worthwhile. We now have less downtime, lower customer returns, and our sales pipeline is the best it has been for years”
Summary
JASANZ accredited ACRS product certification assisted an Australian company to improve the construction industry’s acceptance its product by industry, whilst simultaneously addressing significant supply-chain quality issues it had grappled with for years.
*Some names and identifying details have been changed to protect the privacy of individuals.
