The Importance of Product Standardization

2020-10-30
6 min read

Learn about:

  • What product standardization is
  • The uses of standardization
  • The benefits of standardization

Product standardization is the method of keeping intact the consistency and sameness through various replications of a specific item or commodity available in different markets. It is an approach of promoting a product to keep it free from any changes.

Standardization of products sold in different regions, countries, or continents ascertains that the same product reaches the consumers, irrespective of its place of purchase. 

Uses of product standardization

Product standardization finds its use in several ways. To attain a smooth-running production system, companies function on specific directives to manufacture products and services objectives like new measures, cost-cutting, etc.

Cost-cutting: 

Product standardization lowers production expenditure. Suppose a company follows a set of instructions to manufacture the same goods. In that case, it automatically reduces the spending on raw materials since identical raw materials go into the production of that specific item. 

Rather than shelling out money on a variety of raw materials, different packaging, and unusual marketing methods, standardization makes sure that production, as well as upkeep costs, are kept to a minimum. Likewise, as the manufacturer does not need to present new advantages with every production of the item, it also reduces the production costs.

Productivity: 

The production system reaches a higher efficiency if the final objective is to keep the products consistent. Product consistency reduces the overall effort that goes into production. Automation of the critical sections of the production process also becomes more straightforward. 

Different companies and industries use identical procedures to manufacture the same product. When there is no pressure to introduce changes to a particular product, every replication increases efficiency. The consumer believes that the product quality will remain intact and, at the same time, expects no drastic changes. There is a setup process that optimizes production and increases its frequency.

Setting up and consolidation of the brand: 

In case of the availability of a specific item in multiple markets, both domestic and global, having the same design and specifications, it attracts the consumers’ preference and loyalty. Irrespective of its geography, the same quality product is consistently sold to the consumer, helping consolidate the brand.

The enterprise or domain generates profits from the specific identifiable item purchased by consumers who have been using it previously and are keen to repurchase it depending on its quality. If the company manages to keep its quality consistent, it stands a strong chance of being a global brand.

Customer comfort:

The convenience of product standardization for customers is vital for high-tech products, construction materials, or automotive parts. Specific product specifications depend on which individual products the company manufactures. 

Following instructions makes sure that customers can spot a product to meet a particular requirement, irrespective of its geographical location. The technology used in standardization keeps technological gadgets compatible all over the world, resulting in maximizing efficiency. 

Fixed components that are part of the construction process, like equipment, must be consistent all through the global markets, preventing any disorder concerning these products.

Quality criteria:

Product standardization guarantees that every product adheres to a fixed quality benchmark. The item must be unvarying in every way. This consistency makes the detection of any fault in the production cycle or marketing very easy. The least discrepancy in the quality will be apparent. 

Any inability of an iteration of an item to meet the already set level of quality will be visible to customers. The presence of this benchmark ascertains that the producer will do everything to preserve it. The onus lies with the manufacturer to maintain the quality of the product.

The benefits of product standardization

As against product adaptation and customization, product standardization scores on certain benefits.

Product modernization:

When there is a basic format to work with, the probability of innovating is higher. Various enterprises in an industry that provides standardized products use the standardized product as a base to produce a more pronounced item that bears uniformity with the industrial benchmarks and is still of better quality. 

Rather than starting fresh with innovation, having a basic structure reduces costs and makes things more efficient. It is an orderly use of time and assets to standardize products.

Value for the consumer:

With the help of product standardization, the range of products in the market that serves a specific objective reduces the number of available products with a particular purpose. Consumers can choose the item they want to buy more efficiently, thus reducing confusion in the consumer’s mind. 

Customers better know the quality of products that are the same in every iteration. Therefore, they can make more conscious choices concerning whether they will make the purchase or not. 

If the product cannot stand up to the established benchmarks, the consumer will be aware and choose to abandon it. Product standardization guarantees consumer security.

Global market:

With globalization, the demands of people are similar across all territorial and cultural boundaries. Product standardization throughout domestic and international markets ascertains that one product, exhibiting uniformity all over, is within reach of consumers, irrespective of their physical location. 

Quality does not differ in different nations. People can travel overseas and shop for the same item they have been using in their home country. On the other hand, shoppers who know about a product sourced in a particular country do not have to travel to purchase that product. At the same time, they do not have to worry about the quality of the product.

Evading adaptation expense: 

It is undoubtedly costlier to customize a product or service to a precise clientele. Businesses and enterprises profit by adopting a universal uniformity technique. 

To tailor a product, the manufacturer must collect information, conduct thorough testing, and roll out a variety of merchandising methodologies depending on the focus clientele. 

Manufacturing consistently similar products, irrespective of the market or the industry, saves on costs. According to the market-size and type of the product in question, product adaptation may turn out to be a much more expensive affair.

Final Thoughts

Product standardization brings about uniformity in products and therefore has profitable returns. In addition to providing benefits to the organization, this also is profitable to the customers.

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Written by The SupplyPike Team

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SupplyPike builds software to help retail suppliers fight deductions, meet compliance standards, and dig down to root cause issues in their supply chain.

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