ETQ, a provider of quality management solutions, has released findings from its research study, The State of Quality Management: 2020. According to the survey, food and beverage companies are investing more in quality as a strategic business growth initiative that brings a significant return on investment (averaging 11%). The report also finds that poor quality is costing organizations $31M per year on average.
“The results from The State of Quality Management: 2020 are eye-opening on many levels and reinforce the financial impact quality has on corporate performance,” said ETQ CEO Rob Gremley. “As the survey shows, companies committed to quality as a strategic business driver benefit from stronger customer loyalty, less costly product recalls, competitive differentiation, and ultimately, stronger revenues.”
Key findings from the survey, which was conducted just prior to the COVID-19 pandemic, include:
- Essentially all food and beverage organizations have a dedicated quality function and a quality management process and include quality as part of their mission statement.
- Food and beverage organizations spend an average of $72M on quality programs and people; this represents an average of 6% of total organization revenues.
- Survey respondents report that good quality currently adds an average of $114 Million to revenues (an average contribution of 9% from good quality to total organization revenues).
- Essentially all food and beverage organizations (97%) report having had a product recall over the last 5 years.
- Approximately 40% of food and beverage organizations report planning to increase quality spending or headcount at an average rate of approximately 23% in 2020. (the survey was conducted just prior to the COVID-19 pandemic).
To learn more about ETQ, visit www.etq.com.