In this time of globalization, emerging markets and volatile stock markets, company boards of directors have grown weary of the pressure of external stakeholders. In the promotional industry, there is a definite shift in the way day-to-day business is conducted as a result of this pressure.
In the good old days of selling the latest promotional item, ensuring you protected the client’s logo simply meant getting the colors, size and logo position correct. This is no longer enough. Decisions that were most often made by the buyer, the marketing group or through an established relationship are now influenced by additional factors.
Since the dreaded summer of product recalls in 2007, product safety and regulatory compliance have been the key focus of many industries. The focus is now shifting to social accountability, and doing business with emerging markets is not as easy as knowing a factory or being able to buy at the cheapest price.
Acronyms such as CPSC, C-TPAT, SEDEX, ISO9000 and FDA, and terms such as “eco” and “green” are quickly becoming required knowledge when vying for new business opportunities. These days, CEOs discuss corporate responsibility and sustainability more often than they have in the past. They are aware of the increasing vulnerability of their brand’s reputation and focus on the importance of whether the vendor they choose is aligned with their corporation’s mantra and vision.
With the complexities of supply chain management and various lateral groups that make up this supply chain, decisions are no longer made by just one person. Now, decisions are made by a group of stakeholders that evaluate their vendors from the following perspectives:
Social accountability and environmental stewardship
Innovation/creativity
Quality/product safety and regulatory compliance
Logistics and Service
Competitiveness
So, what’s next? The question becomes whether innovation and competitiveness are sufficient to conduct your day-to-day business with existing clients, and whether this is a sustainable way of doing business that promotes growth. Increasing your revenue and moving your business to adapt to the changes around you are vitally important for the sustainability of the organization as a whole.
Our industry association, PPAI, recognizes the need to adapt to these changes and has developed many useful resources and programs, such as its annual Product Safety Summit, to help companies of all sizes get started in implementing a program. The mandatory four-hour product safety education program to attain your company’s Product Safety Aware status (see sidebar) is a crucial part of the change that each and every business needs to embrace.
Product safety is no longer merely an option or just something that’s nice to do. It is the requirement of many clients and it’s also the law. As a distributor’s intended consumer audience becomes smarter shoppers and has instant access to information, promotional products businesses need to understand the implications of ignoring the law’s requirements for consumer products.
Implementation of a product safety program within your organization does not have to be a daunting task. Starting with basic questions, both with your client and supplier can help determine the requirements of the project. Whether yours is a 100-, 40-, 10- or one-person company, there should be one person tasked with guiding your company’s compliance program and maintaining documents such as test reports and compliance certificates. An internal checklist for a promotion could look like this:
Who is the intended audience of your campaign?
Will or could the items be distributed to children?
How will the products be distributed?
Where will the products be distributed?
What kind of logo do you intend to use?
Does your supplier consider this a children’s product? Why or why not?
Can your supplier provide you with testing documents for your product?
Any product safety program must be instilled as part of the culture within your company regardless of size, type of client or product. It can’t be selective for some clients and promotions. Educating your sales force, knowing your suppliers’ capabilities and staying current with the requirements of the law are all part of a robust compliance program.
Still not sold? Think about this example: We all have beaten a red light in traffic here and there, and most of the time felt we got away with it. Then one day we get that expensive ticket and perhaps a couple of points on our driver’s license. Using this same analogy, you may sell products that are not compliant to your clients for a period of time without any repercussions. But when that product hurts a consumer and must be recalled, it can be detrimental and costly to your business, and, more importantly, to your client’s brand.
Shamini Peter is director of product safety and compliance for New York, New York-based distributor Axis Promotions. She serves on the PPAI Product Responsibility Action Group and was named a PPB Rising Star in 2013.
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How To Become Product Safety Aware
Hundreds of industry companies have already achieved Product Safety Aware status as PPAI’s Product Safety Awareness program continues to grow. The program, launched at The PPAI Expo 2014, requires all companies seeking access to the marketplace through PPAI’s trade-show exhibit space, sponsorships and advertising to undergo four hours of product safety training no later than the start of Expo East 2015. The product safety education must be achieved by a roster employee who serves as the company’s Product Safety Ambassador.
The program is designed to enhance industry-wide commitment and a culture where companies are not only aware of product safety but are leading the discussion at every level in the promotional products channel. The initiative also helps position promotional products as a powerful and safe marketing strategy.
PPAI has embraced an all-access education model making education available to all members through as many channels as possible. Check out the resources and find details about the program at this link: www.ppai.org/inside-ppai/product-safety.
>>In The Know
CPSC: The Consumer Product Safety Commission, which is responsible for development of the Consumer Product Safety Improvement Act in 2008.
C-TPAT: The Customs-Trade Partnership Against Terrorism is aU.S. Customs and Border Protection voluntary joint government-business initiative to build cooperative relationships that strengthen overall supply chain and border security.
SEDEX: The Supplier Ethical Data Exchange is a nonprofit organization that works with buyers and suppliers around the world to deliver improvements in responsible and ethical business practices in global supply chains.
ISO9000: A series of standards developed and published by the International Organization for Standardization (ISO) that define, establish and maintain a quality assurance system for manufacturing and service industries.
FDA: The Food and Drug Administration is a federal agency within the U.S. Department of Health and Human Services that was established to regulate food and health-related products as well as drinkware and tableware.