3 Benefits of Proactive Product Compliance
1) Cost Reduction
The benefits of product compliance are many, but reducing costs is one major factor influencing companies to be more forthright in their planning and execution. The costs of non-compliance are significant, including but not limited to: rework, slowed time to market, customer dissatisfaction, fines, environmental disasters, illnesses and fatalities. These costs are simply unacceptable for companies that want to compete in a global market. With economies like China and India continuing to grow, consumer and channel pressures are driving organizations to focus more intensely on risks that lead to increased costs and market exposure.
2) Improved Time to Market
Another benefit of product compliance is improved time to market. We’ve all heard of the first-mover advantage and while it’s not always a prerequisite for success, it does help in positioning a new product or service, increasing internal organizational morale, and in delivering upon an expectation or promise to the customer. As part of an effective product development and management framework, best-in-class organizations implement agile development methodologies that lead to viable products available in a desirable timeframe. One crucial characteristic of this type of product is compliance.
3) Sustainable Customer Value
The last major benefit of product compliance is creating sustainable or long-lasting customer value. With social media playing an important role in communicating the value of a brand or product to customers, product compliance becomes a highly visible two-way road. Consumers are happy to take to Facebook, Twitter, or another social media platform, to let their network know if they like or dislike a product or some company. It is important for organizations to create lasting or sustainable value for customers in order to not only keep their attention, but their business.
In the third and final post of this series, we will propose a framework used by many best-in-class companies to achieve proactive product compliance.
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