Evidence backing accredited third-party certification
Sponsored content submitted by Eagle Certification Group
How we allocate our company’s budget is as critical as ever. Thanks to accredited third-party certification, it is not just a piece of paper but preparation for long-term, sustainable success.
Companies decide to become certified for many reasons. One of their customers could be mandating it, they are looking for a competitive advantage, they want to expand into a different industry or they simply have a commitment to quality, the environment or food safety. Whatever the reason, at some point they are bound to ask themselves, “Will the benefits for becoming certified really outweigh the expenses incurred and how quickly will the benefits be realized?”
In today’s society, we are all about immediate gratification. We want what we want NOW and we want to reap the benefits of what we have NOW. With third-party certification, the proof (or the greatest benefits) will be seen over time. Sure, certification can help a company retain or gain the customer who is mandating it or will satisfy their corporation’s mandate. However, like most new processes, the strongest benefits are not going to be immediate. With certification, it is the organization with a mature, robust management system that is going to realize the greatest return on its investment. These benefits can be in the form of financial, as well as non-financial benefits.
Numerous studies have been conducted to document, validate and quantify the benefits and return on investment for accredited certification to one of the quality, environmental or food safety management systems. One such study was recently conducted by the International Association of Accredited Registrars (IAAR). In the results, 84% of the respondents stated they realized a measurable return on their investment. Measurable returns like the ones outlined below, were realized in less than 18 months:
11% of the respondents realize a return of more than 20%
15% of the respondents realized a return of 10%-20%
27% of the respondents realized a return of 6%-10%
Benefits have also been found in other forms. For example, in the IAAR study the most frequently named benefits of certification were:
Improved perceived quality (57%)
Improved customer satisfaction (55%)
Competitive advantage (38%)
Reduced customer audits (31%)
Increased market share (11%)
Quicker time to market (4%)
Greater quality awareness (73%)
Better documentation (73%)
Increased efficiency (37%)
Positive cultural change (33%)
Improved financial performance (12%)
Improved morale (9%)
Among a multitude of other case studies from various reputable institutions supporting similar claims, EAGLE Registrations turned to its auditors to provide their own insight from how they’ve seen certified companies in the field. The results further strengthened the argument towards the benefits of third-party accreditation:
Improved processes – A process improvement resulted in the establishment of a corrugated recycling practice that reduced the company’s trash pickup from two times daily to one time per week. This change resulted in reduced waste to the landfill by 2/3 fewer trips and the company realized a profit from the recycling.
Improved products and services – A non-conformance against customer specific requirements prompted a company to develop a detailed matrix of their requirements. Implementation of the matrix reduced their error rates, defective products and lead to fewer warranty claims.
Continuous Improvement – A continuous improvement program identified an inefficient grease pumping system that was wasting four to five drums of grease. The improvement saved the company $200,000 annually in grease.
In the world we live in today, data reigns supreme when it comes to making decisions, measuring outcomes, and analyzing projections. Thanks to accredited third-party certification, the qualitative changes that companies implement become quantifiable over time. Communication becomes easier and more effective. Quality becomes engrained in the culture and vision of the company. Certification is here to stay, and companies that believe in its benefits have, and will continue, to reap the rewards.
EAGLE Certification Group
40 N. Main Street | Suite 1880 | Dayton, OH 45423 +1.800.795.3641 or +1.937.293.2000 | fax +1.937.293.0220
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