hidden costs of poor quality

High quality product is often associated with high cost. However, even if the initial financial investment appears larger, it is important to recognize the hidden costs that come from purchasing and supplying poor quality products, and how those expenses might hurt not only your pockets, but also your company as a whole.

Damages Customer Relationships

Imagine purchasing clothing only for each piece to continually tear after a few wears. You would probably be upset and choose to no longer buy from that particular store. This same mindset is also mirrored in the furniture industry, potentially with your company and your customers.

Offshore suppliers are appealing with their seemingly low costs, but the quality of their products often reflect that price. Even if you held a meeting with those suppliers to set strict expectations, cultural differences and ways of business might still leave you shy of what you were hoping for.

When those are the products that you then send to your customers, it negatively reflects your brand, and you risk the trust that you have worked to build within those relationships. Customers might leave for new suppliers that they can count on to provide a high-quality product, and soon, your relationships are falling quickly along with your profits.

And it doesn’t end there (with existing customers). Poor quality product creates a reputation for itself, and in turn, the brand that is providing it. While there will be less continued business, there is also likely to be less new business once word spreads.

In supply chain across all industries, OEMs hold high expectations, and rightly so. A report published in the National Academies Press states that “quality must be a systemic way of doing business that is instilled in all participants in the chain.”  If businesses can’t rely on your company to perform to their quality standards, they will likely find a different supplier that can.

Impacts On-time Delivery

In addition to the face of the brand, poor quality can impact delivery. On-time delivery is always important, but when your business is choosing to do just-in-time manufacturing, it becomes even more vital that your products are made when you expect them, how you expect them.

Since production will be quick and to a specific quantity, receiving poor quality products would add additional time for repairs or complete start overs, leaving your customers wondering why you can’t deliver as scheduled.

OMT-Veyhl Takes Quality Seriously

At OMT-Veyhl, quality is at the forefront of our business, and every product is designed and engineered to withstand the forces of the modern workplace. We verify that our products are performing as expected in our Onsite Test Labs which replicate every major test required under BIFMA and UL standards. Once we’re confident in the quality of our prototypes, we send them to third-party labs for external testing and verification.

Quality control also continues throughout our manufacturing process. With precision-driven equipment and a wide variety of fixtures that ensure precise part placement, our production process creates parts to very high tolerances. Completed parts have to satisfy go/no-go gauges, catching errors before assembly. After assembly, computer-assisted quality control helps confirm that the right parts are included in every package.

If you’re looking for a supplier than you know you can count on to deliver parts that match your high expectations, contact OMT-Veyhl. With a variety of standard products and custom abilities, OMT-Veyhl is ready to meet your every need.

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