Standardization is an excellent process to make sure that your consumers get the same product every time. It builds their trust in your product or service. Standardization also allows you to build a loyal customer base by providing them with the same product they use the first time. If a product is not standardized, it might not gain the same kind of popularity. Customers believe that a company that puts effort into standardization cares about them. Standardization also has a few demerits for business owners. Let’s tell you about the advantages and disadvantages of standardization in detail.
What is Standardization?
Standardization in an industry refers to maintaining consistency among the services and products offered by a company. The services in all aspects must offer the same core values. Similarly, the products must have the same quality throughout. If any changes are made, they must not affect the characteristics of the goods.
A company follows a particular set of protocols to ensure that the product or service is consistent. They devise the strategies once and make sure to adhere to them. Mostly these guidelines are per the national standards. However, you must follow international regulations when producing goods for the international market.
Standardizing a product or service is based on following the safety protocols and considering the needs of the consumers. It requires adapting the same technology for producing that product and checking product quality on the same parameters. Every product or service has particular standards to ensure consistency and uniformity.
Advantages of Standardization
Improved Production Efficiency
The production efficiency improves when the technology and manufacturing methods are designed per a specific product. When you produce a product according to the same standards, you do not have to worry about innovation. Establishing production rules and manufacturing goods on predetermined standards reduces time and enhances manufacturing efficiency.
Better production efficiency also means reduced cost. When the production facility is designed to produce one kind of product only, buying the raw material in bulk brings down the cost. You do not have to spend more money adjusting the machinery to different products or variations of the product. It also saves the added cost of varying raw materials and maintenance. Producing products according to a standard without any changes lessens the cost.
Standardization of a service or product ensures that all pieces of a particular product are of the same quality. Having a standard quality standard for all enables you to detect issues with the product. The quality checkers and assurance officers make sure to check the products before packing. The quality of the product and packaging gives the customers a sense of satisfaction with a high-quality product.
Adaption Cost Reduction
Having a standardized process avoids the cost of adaptation. It is more expensive to devise a particular service or good for a specific consumer base. Customizing a product requires gathering data, extensive searching, and looking for various marketing techniques to attract customers. Standardizing a product helps you save the cost of customizing the product. The saved cost depends on the company’s manufacturing.
Reaching the international market has enabled companies to make more profit by catering to a wider customer base. Today, globalization has caused an increase in the need for similar products of the best quality. People are looking to buy products from different countries. Catering to international markets requires you to make sure each product is uniform. By producing standardized products, you can sell your products beyond borders.
Standardization of a product reduces confusion among consumers. When consumers are aware of the quality standards of a product, they do not look for other options. On the contrary, if the product is not uniform and does not meet the standard of the consumers, they avoid it. Product standardization provides safe, better-quality products to the customers.
Disadvantages of Standardization
Standardizing products is not feasible when the product is manufactured in multiple production facilities. Various countries have specific systems and equipment that may differ from other locations. Sometimes, the equipment might not have the same specifications either. Thus, you will need to adjust the equipment per need.
Failure to Adapt
Today, consumers want to get the most according to the changing trends. Many consumers purchase the same standardized products, while others like innovation in the products. Focusing on providing the same features in a product over the years might push the customers to another company. Standardization halts you from catering to the needs of such customers.
Product or service standardization is not the best choice sometimes. It may not prove feasible when catering to people from different backgrounds. For example, some tea containing alcohol components is not the right choice for some cultures. It is not labeled halal and is unsuitable for selling globally in Muslim countries. It is better to customize products depending on the customer’s needs.
The Bottom Line
Standardization helps provide uniform and consistent quality products to the customers. It enables them to trust your brand and becomes loyal customers. However, it also hinders adaptation to the modern needs of the consumers. Standardization and customization must work according to the regional and individual consumer requirements.
Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.