Manufacturing, distribution and retail management environments are constantly evolving and trying to keep up with the onslaught of new products that customers crave while at the same time keeping in stock and rarely changing the old favorites.
Managers and business owners need to stay in tune with the climate of their company but they also need to check the pulse of the outside world. They need to gain knowledge of what is no longer acceptable for products and then to put practices into place that ensure their company is following the rules set forth by the United States Consumer Product Safety Commission and the Federal Trade Commission.
The U.S. Consumer Product Safety Committee has an extensive data base of information on everything related to product recalls. In the U.S.CPSC Overview they claim, “The CPSC's work to ensure the safety of consumer products - such as toys, cribs, power tools, cigarette lighters, and household chemicals - contributed significantly to the 30 percent decline in the rate of deaths and injuries associated with consumer products over the past 30 years.“ At their website managers can be set up to be notified whenever there are recalls that affect the company or competition.
Quality Assurance
Some companies eliminate or cut quality assurance programs as the return on investment is intangible in most cases. Reputations are put on the line and companies are willing to let their “vendors” take the rap for product that is substandard. Some companies have quality assurance programs on-site in the factories making the product overseas.
Sometimes the group working for the company in the U.S. A. befriends the foreign vendor and fewer quality issues are found. Sometimes the quality group is paid off by the vendor or given special treatment while in the factory. If you have overseas inspectors find out who is watching over them and keep an eye on their track record.
Know the Inventory
It’s important to know the inventory. Are the coyote-trim coats really trimmed with coyote or is it dog fur? Are the down pillows filled with goose down or chicken feathers? Do the size 7 kids sweatshirts have draw strings in the hoods? If so, that is not allowed by the CPSC.oes the entire foreign product line have country of origin labels? You’d better hope so; the Federal Trade Commission doesn’t play well with those who don’t comply. Following is one of many releases on the FTC web site:
FTC Warning’s
On 2-3-2010 the FTC released the following:
FTC Warns 78 Retailers, Including Wal-Mart, Target, and Kmart, to Stop Labeling and Advertising Rayon Textile Products as "Bamboo"
Seventy-eight companies nationwide have received Federal Trade Commission letters warning that they may be breaking the law by selling clothing and other textile products that are labeled and advertised as “bamboo,” but actually are made of manufactured rayon fiber. The letters, which the agency’s staff sent last week, make the retailers aware of the FTC’s concerns about possible mislabeling of rayon products as “bamboo,” so the companies can take corrective steps to avoid Commission action.
“We need to make sure companies use proper labeling and advertising in their efforts to appeal to environmentally conscious consumers,” said David C. Vladeck, Director of the agency’s Bureau of Consumer Protection. “Rayon is rayon, even if bamboo has been used somewhere along the line in the manufacturing process.”
Quality Assurance Programs
A quality assurance department is a must in this day and age. Over time the associates become experts on the quality of the merchandise the company is selling and can confirm that product is meeting specifications for the various laws that are in effect. The purchasing department should be working hand in hand with quality assurance, answering questions and helping them understand the manufacturing process. Software is needed to track and quantify results.
If a warehouse management system exists, chances are there is a built in quality assurance program or the capability to add one in. Some companies have a quality assurance feature yet choose to not use it. Manhattan Associates specializes in this software. If a company doesn't have a quality tracking program, one is needed. If a company doesn't have a quality assurance program, one is needed. If a company chooses to forego a quality assurance department, get a good lawyer, one will be needed!
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