What Is the Real Cost of Poor Quality?

Although few businesses today need convincing that product quality is a crucial factor for success, ensuring consistent quality in today’s complex and easily disrupted supply chains can often feel like an uphill battle.

Quality control is a battle your business can’t afford to lose, because the costs of poor quality are all too real:

• In monetary terms, quality-related costs can eat up 15-20% of sales.
• Up to two-thirds of products purchased online are returned for preventable reasons, including poor quality, damaged products, and products not living up to description.
• 22% of consumers say that a single bad review will drive them away from choosing a product.

It comes as no surprise that effective quality improvement programs translate to higher margins, better customer satisfaction and stronger brand loyalty.

This guide offers six actionable strategies to minimize the cost of poor quality and improve the effectiveness of your quality program.

1. Streamlined Quality Processes and Product Traceability

While supply chain visibility and product traceability are often brought up in the context of sustainable sourcing, having a clear view of the product journey means you are able to quickly identify and address the root causes of quality issues: from specific defects to long-term trends such as quality fade.

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Interested in learning the rest of our proven strategies to reduce costs associated with poor quality? Download our full guide to continue your reading and learn more.