ADVANTAGES OF STANDARDIZATION:
1. Uniformity in quality:
With standardized goods, there is homogeneity and consistency in quality. Hence, a consumer can buy a product without much hesitation and risk as the quality of product will not change over a period of time, thus leading to better goodwill.
2. Differential pricing :
When goods are standardized and classified into various types, one can used differential pricing for different grades of the product. Thus assuring better return to both buyer as well as seller. E.g. Dettol and savlon
3. Increased in demand:
As there is uniformity in size, form, quality and utility of all products of an enterprise, the customers rely on these products. Sale of standardized goods increases.
4. Elimination of risk:
The standards of products are determined keeping in mind the habits, tastes and nature of consumers and the risk of selling standards goods is reduced.
5. Expanding the market :
There is large-scale production of standard goods which results in many types of saving in production , distribution , advertising and sales promotion because of these the manufacturer is in a position to produce best quality goods at minimum cost thus attracting a number of customer.
6. Availability of finance :
Finance can be obtained easily for standard goods as financial institution prefer giving finance to those enterprises who deal in standard goods.
7. No need for inspection:
There is no need for inspecting the quality of a product as the form of size, quality and utility of all the products in a lot are uniform in all respects and the consumers are convinced with it.
8. Standardization helps to reduce inventory items
9. It helps in evolving better means of communications about an item in the company.
10. It forms a base for the inventory analysis.
11. The specifications of items can be more clearly spelt out, making quality control.
12. In a developing economy like ours, where the need is to promote exports insistence on standards helps in creating confidence in the international market.
13. By using National standards, it is easier to locate sources of supplies and in the case of machine parts; the placements can be obtained easily. It could also be used in advertising the products as well as spare parts.
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