Recommended Reading | Standards and Conformity Assessment Facilitate Trust in Supply Chains
Currently, in the context of global economic integration, enterprises are striving to maintain business flexibility while seeking greater cost optimization. This has led to increasingly complex challenges for modern supply chains. Therefore, supply chains spanning multiple countries and regions will pose significant challenges to enterprises in terms of complying with laws, regulations, and standards related to quality, safety, environment, and social responsibility. According to relevant data from the Chartered Institute of Procurement and Supply in the UK, the procurement expenses of many companies typically account for up to 70% of their total expenditures. Thus, any disruption in the supply chain will not only affect the company's brand reputation and customer loyalty, but also its profitability.
The main challenges faced by the supply chain
Although enterprises have been conducting production by purchasing goods from all over the world for many years, the current supply chain is now facing a more complex situation in terms of the speed, scale, depth and breadth of its interactions across the globe.
The globalization of supply chains and the retail market means that enterprises must operate in various different regulatory environments.
Ensuring the quality, authenticity and traceability of raw materials, components or assemblies all require reliance on reliable and trustworthy information.
With the acceleration of innovation activities, the product lifecycle will be significantly shortened, making the market more unpredictable and placing greater pressure on the supply chain.
Enterprises need to manage the business risks or disruptions caused by data security vulnerabilities or system failures.
To effectively select sustainable suppliers, one should not only focus on their financial stability, but also pay attention to their performance in corporate social responsibility and their ethical practices.
Regarding the aforementioned challenges faced by the current supply chain, standards and conformity assessment serve as effective and systematic tools that can provide trust to the supply chain.
What is a standard?
The standard sets out safety and performance requirements, as well as the way in which products, processes and personnel interact with each other and their environment. The standard provides requirements, specifications, guidelines or characteristics for consistent use, to ensure that materials, products, processes and services meet their intended purposes.
Although the term "standard" has different meanings for different people, depending on their different geographical locations, ages, and industries, fundamentally, a standard is a way of doing something in a agreed-upon manner. Whether "something" is producing a product, providing a service, or managing a process, standards provide a reliable foundation for creating common expectations. The standards set by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) are achieved through a strict consensus reached by experts from all over the world, including various business sectors, regulatory agencies and policymakers, consumers, and other relevant parties, based on the principle of "consensus through consultation".
Therefore, standards have become the cornerstone of global economic development, serving to reduce risks and enhance consumer protection. As the perspectives of various industries become more focused on globalization, the demand for compatible standards among global economies is increasing. However, in order to prove that a standard is effective, it must be easy to determine whether a product, service, or process complies with this standard.
What is conformity assessment?
The conformity assessment process is to verify whether a product, service, process, statement, system or person meets the relevant requirements.
The institutions that conduct conformity assessment activities are called conformity assessment bodies (CABs). CABs cover all industry sectors and activities, ranging from calibration institutions, medical and testing laboratories, institutions conducting inspections (for design, products, services, processes or installations), institutions confirming information (through audits or verifications), to institutions certifying management systems, products, services or personnel.
In today's economic activities, almost every industry relies on certification, inspection, testing or measurement services to enhance its effectiveness in various aspects such as quality, environment or health and safety. According to data from the Organization for Economic Cooperation and Development (OECD), 80% of trade involves testing, calibration, inspection and certification activities. So, how can one ensure that a conformity assessment body has the necessary capabilities and is trustworthy? To achieve this, these conformity assessment bodies must meet the series of ISO/IEC 17000 standards on conformity assessment (i.e., the ISO/CASCO toolkit) formulated by the International Organization for Standardization (ISO) Conformity Assessment Committee (CASCO).
Among the ISO/IEC 17000 series of standards, one of the most important ones is ISO/IEC 17025 "General Requirements for the Competence of Testing and Calibration Laboratories". ISO/IEC 17025 is applicable to laboratories conducting testing and calibration, and testing is widely used in fields such as healthcare and safety, business, manufacturing, construction, environmental monitoring, transportation, agriculture, forensic science, telecommunications, etc. ISO/IEC 17025 enables laboratories to demonstrate their corresponding technical capabilities, maintain impartiality, and provide stable and effective, reliable results.
The ISO/IEC 17000 series of standards also includes ISO/IEC 17020, "Conformity Assessment - Requirements for the Operation of Inspection Bodies". This standard is applicable to inspection bodies, and inspections are widely used in various fields, including agriculture, transportation, healthcare, construction, telecommunications, and others. Activities such as inspections for environmental permits, inspections related to agricultural food products and industries, technical inspections of road vehicles, acceptance of supplies, and management and control of municipal permits are all services provided by inspection bodies. Meeting the requirements of ISO/IEC 17020 can ensure that inspection bodies provide stable, competent, and impartial inspection services.
An effective management system is an important business component of an organization. By establishing, implementing, maintaining and improving the management system in accordance with relevant management system standards, and through the audits and certifications of the management system, the organization can enjoy numerous benefits. Some specific industries even have formulated their own management system standards for their respective fields. For instance, IATF 16949 for the automotive industry, AS 9100 for the aerospace industry, FSSC 22000 for the food industry, and TL 9000 for the telecommunications industry.
Management system certification bodies that adopt the ISO/IEC 17021 series of standards can ensure that their audit teams possess the necessary capabilities, have sufficient resources, follow consistent processes and provide independent and impartial audit results. The ISO/IEC 17021 series of standards include standards for audits and certifications of management systems such as quality, environment, sustainability of major events, assets, business continuity, road traffic safety, community sustainable development, anti-bribery, occupational health and safety, facility management, collaborative business relationships, and compliance.
ISO/IEC 17024 "Conformity Assessment - General Requirements for Personnel Certification Bodies" stipulates the requirements that personnel certification bodies need to meet in order to prove their ability to conduct certifications for personnel within a specific scope. ISO/IEC 17024 helps ensure that personnel certification bodies conduct certification activities in a consistent, comparable and reliable manner. Personnel certification is widely applied in various industries such as healthcare, construction, information technology (IT), manufacturing, safety and finance, and helps ensure that personnel in specific fields possess the necessary knowledge, skills and abilities to perform their jobs well.
ISO/IEC 17065 "Conformity Assessment - Requirements for Certification Bodies for Products, Processes and Services" is a means of ensuring that products, processes or services meet the requirements stipulated in the certification scheme standards and other normative documents. The certification conducted in accordance with ISO/IEC 17065 is widely applied to various products, including metal materials, household appliances, building materials, electrical materials, wind farms, forest products, handicrafts, food and other major field products, as well as different types of services, such as tourist attractions, etc. ISO/IEC 17065 enables certification bodies to prove that they conduct certification activities in a competent, consistent and impartial manner, thereby facilitating the better recognition of certified products, processes and services in the domestic market and the international market.
ISO/IEC 17029 "Conformity Assessment - General Principles and Requirements for Accreditation and Verification Bodies" stipulates the general principles and requirements for the capabilities, consistency, and impartiality of accreditation and verification bodies. Accreditation and verification, as part of the conformity assessment activities, can be understood as activities for verifying the reliability of the information claimed. ISO/IEC 17029 is widely applied and is applicable to claims related to areas such as building technology, energy management, financial management, industrial automation systems, software and system engineering, artificial intelligence, information technology, healthcare products and medical equipment, machine safety, safety and design engineering, as well as social responsibility.
Whether the assessment results of the certification body are accepted by regulatory authorities, manufacturers or end-users is of vital importance to the reputation of the certification body. The certification body can also pay attention to the accreditation process and have independent and impartial institutions assess its capabilities. Such institutions are called accreditation bodies. Therefore, accreditation provides the certification body with an additional layer of trust, thereby convincing people that the certification results issued by one accredited certification body, such as a certification certificate and a test report, are actually equivalent to those issued by another accredited certification body.
What is the role of recognition?
Recognition is an independent evaluation of a conformity assessment body based on recognized standards, to ensure that it possesses the necessary capabilities, impartiality and consistency.
Therefore, conformity assessment and accreditation play a significant role in reducing trade and operational costs, enhancing technology transfer and increasing investment. They also enable enterprises to deeply integrate into the global supply chain, as the quality of products and services can be demonstrated through this common "technical language", which forms the basis for building trust among business partners. A report compiled by the Economic Research and Statistics Division of the World Trade Organization states that among the issues arising in the trade field, the improper use of conformity assessment accounts for 10% of specific trade problems, while accreditation provides an effective method for addressing the issues related to the improper use of conformity assessment.
Transmitting Trust in the Supply Chain
Given the complexity of today's supply chain, it is of utmost importance to re-assure the measurement, testing, inspection and certification activities carried out in other jurisdictions or market environments.
Without a certain degree of trust, the free exchange of goods and services may be hindered by technical obstacles or differences in quality levels, thereby increasing the costs for importers and consumers. This complexity also leads to excessively high costs for all laboratory tests, inspections and certifications conducted by governments or regulatory agencies to protect public health, safety and the environment. One increasingly adopted solution is for each country's government to set rules, stipulating the requirements that should be met and the procedures used to prove compliance. And industry suppliers can make corresponding choices based on this, thereby obtaining recognition for their compliance with relevant requirements and processes.
Conformity assessment is used to prove that products and services comply with standards or technical specifications. In the regulatory field, conformity assessment can demonstrate compliance with laws and regulations; while in the voluntary sector, it can assure consumers and importers that the products and services they purchase meet the requirements of relevant standards or technical specifications.
For information on the application of conformity assessment in supply chains of various industries (including food, construction, automotive and other supply chains), please visit the following website:
go.iso.org/supplychainconfidence.
Supporting supply chains through international recognition
The global agreements among certification bodies have facilitated the acceptance of products and services across borders, thereby establishing a global infrastructure to support trade, regulatory approval processes, and trust in the supply chain.
The global agreement arrangements among these accreditation bodies cover 96% of the global GDP and are managed by the International Accreditation Forum (IAF) for the accreditation domains of the accreditation bodies, and by the International Laboratory Accreditation Cooperation (ILAC) for the accreditation domains of laboratories and inspection institutions. The global agreement arrangements among accreditation bodies help ensure that the accreditation work carried out by the accreditation bodies worldwide remains consistent, and that different accreditation bodies adopt the same international standards. Therefore, under the international mutual recognition framework of IAF and ILAC, products and services that have undergone testing, inspection, or certification will be accepted globally in the same manner of trust.
A study conducted by the Centre for Economics and Business Research in the UK indicates that an additional £6.1 billion in exports could be generated each year through standard and recognized conformity assessment activities. It is reported that due to the buyers' trust in the safety of products and services and their compliance with their requirements, these products and services have gained wider acceptance. This approach eliminates subjective and arbitrary technical barriers in trade, thereby enhancing trust and transparency in complex and cross-border supply chains.
Increase recognition of standards and conformity assessment
In recent years, the trend of recognition for standards and conformity assessment has been increasing.
At the national, regional and global levels, standards and conformity assessment arrangements have been widely recognized by governments, regulatory agencies, numerous organizations and trading partners. For instance, the trade agreements signed by the European Union (EU) with Japan, Canada, Switzerland and Tunisia stipulate the use of recognized conformity assessment results to ensure coordinated free trade.
The Gulf Cooperation Council (GCC) implements a single market supervision system, using recognition as the fundamental tool for implementing the supervision system and applying it to all laws and regulations to ensure that the regulated institutions possess the necessary capabilities. The Asia-Pacific Economic Cooperation (APEC) agrees with recognition and regards it as the basis for the qualification assessment part in the APEC agreements. The Association of Southeast Asian Nations (ASEAN) has incorporated the recognition of electrical and electronic equipment into the mutual recognition agreement (MRA) of ASEAN countries, using it as a means to prove compliance with specific requirements. At the national level, 173 countries have participated in the activities of the International Electrotechnical Commission (IEC), and most countries accept the certificates issued by the IEC's qualification assessment (IEC CA) system as proof of meeting the required standards. The European Union, the Gulf Cooperation Council, and the Asia-Pacific Economic Cooperation also recognize and accept the certificates issued by the IEC qualification assessment (IEC CA) system.
The Application of Conformity Assessment in the Supply Chain
The application of internationally recognized conformity assessment tools in supply chains and procurement can bring numerous benefits to organizations. These conformity assessment tools can be widely applied in various countries and different industries. Relevant information and case study reports can be obtained by visiting the following website:
https://business-benefits.org/
https://publicsectorassurance.org
Electrical Engineering Technology
The International Electrotechnical Commission Electronic Components Quality Assessment System (IECQ) is a global approval and certification system that covers the supply of electronic components and related materials and components (including modules) and processes. IECQ adopts quality assessment norms based on IEC international standards.
IECQ aims to provide quality assurance and reduce costs. Electrical and electronic products often consist of components and sub-components that are made up of many (sometimes hundreds of individual parts). Each manufacturer wants to ensure that the electronic components used in their products have the required quality and reliability. To reduce inspection costs and eliminate the need for quality audits of suppliers, these manufacturers can choose suppliers that have already obtained IECQ product certification.
Automotive industry
The automotive industry is one of the industries with the strictest quality control regulations, and it has a significant and wide-ranging impact on the lives, safety, and well-being of people from all backgrounds and regions around the world. The IATF 16949 standard aims to enable suppliers of automotive components and assemblies to establish and implement a quality management system, so that they can produce products that meet all requirements in the current highly challenging environment.
Selecting suppliers that have obtained IATF 16949 certification enables automotive original equipment manufacturers (OEMs) to have confidence that their supply chain has established appropriate processes and systems, thereby being able to meet the strict requirements of automotive products.
The International Automotive Task Force (IATF) has formulated quality assurance requirements for all goods, components or systems applicable to automotive manufacturing, based on the experience of automotive original equipment manufacturers and the automotive industry, including quality assurance requirements for electronic components.
China Energy Conservation Program (CECP)
The China Energy Conservation Program (CECP) is a voluntary certification program aimed at achieving the goals of energy conservation and emission reduction by encouraging manufacturers to produce products that are more resource-efficient and by assisting consumers in making more sustainable purchasing decisions. The CECP product catalogue covers 18 product categories, ranging from energy to water-related products, such as electrical and electronic equipment, lighting appliances, and shower devices.
CECP is an important certification closely related to China's government procurement. The product catalogue of CECP includes products of two different types, namely "mandatory type" and "preferred selection type". For products of the "mandatory type", they must obtain CECP certification to be accepted by China's government procurement plan. For products of the "preferred selection type", obtaining CECP certification can give them certain advantages in China's government procurement plan.
China Environmental Labeling Program (CELP)
The China Environmental Labeling Program (CELP) was established as a third-party voluntary certification by the former China National Environmental Protection Administration (NEPA, now the Ministry of Ecology and Environment of China) in 1993. In 2008, CELP joined the Global Eco-label Network. CELP is a "leadership certification" formulated in accordance with ISO 14024 (Environmental Labels and Declarations), aiming to promote sustainable consumption and production, thereby facilitating China's green development.
The CELP catalogue covers up to 98 different product categories, including various industries such as automobiles, electronics, construction, textile and chemical industries. For products listed in the CELP government procurement catalogue, if they have undergone CELP certification, they will be given priority over those that have not undergone CELP certification when participating in the competition for government procurement projects.
At present, an increasing number of product categories have been included in the government's procurement list of environmentally friendly products, such as office equipment, household appliances, furniture and building materials.
Outdoor fitness equipment certification
With the increasing popularity of public gyms and outdoor fitness stations, the demand for safe and high-quality outdoor fitness equipment is growing. Just like the equipment in outdoor venues, outdoor fitness stations are also installed in easily accessible public places that are not regularly supervised. In China, the General Administration of Sport of China has issued regulations for the allocation and management of outdoor fitness equipment. It requires that all outdoor fitness equipment purchased and constructed by government departments for public free use must be certified by a nationally recognized outdoor fitness equipment quality certification agency.
Railway industry
ISO/TS 22163 sets out the requirements for quality management system certification in the railway industry. This international standard is applicable to all supply chain organizations that provide railway products. Procurement is one of the key activities that ensures the entire supply chain meets the quality requirements.
The focus of conformity assessment lies in customer satisfaction, process performance, and process improvement. Therefore, the ISO/TS 22163 quality management system helps enhance the transparency and trust in the railway industry. The ISO/TS 22163 quality management system certification is a voluntary certification. However, through this certification, it enables key manufacturers in the railway industry to commit to requiring their suppliers to undergo this certification, taking into account different market risk criteria based on the purchased products, such as strategic relevance, business volume, product criticality, the turnover of the railway industry, and the performance of the suppliers, among other risks.
The quality management system certification conducted in accordance with ISO/TS 22163 will effectively support enterprises in making correct decisions when seeking a qualified product supply chain. This includes approving new suppliers through specific project supplier selection, as well as the effective implementation of the project and the high-quality delivery of products or services.
China's railway-specific products
In 2003, based on the "Product Quality Law" and the "Railway Safety Management Regulations", a railway product certification system was established, making product certification the main means for market access of railway products.
In 2012, the Ministry of Railways of China and the China National Certification and Accreditation Administration Commission (CNCA) jointly issued the "Regulations on Railway Product Certification".
In 2014, the Ministry of Railways of China issued the "Measures for the Certification of Special Railway Products" and the "Catalogue of Qualified Special Railway Products". Therefore, railway product certification has become an important measure for the railway industry in China to have confidence in the quality and safety of railway-specific products.
British local councils
The local government committees in the UK employ inspectors from recognized inspection agencies to conduct inspections on the asbestos quality of their real estate projects. By accrediting the inspection agencies in accordance with ISO/IEC 17020 (the requirements for inspection agencies), it is ensured that the inspectors have the necessary capabilities, independence and impartiality. This will effectively support the local government committees in conducting due diligence and selecting suppliers, ensuring that the reports received are accurate and reliable, and eliminating the need for duplicate work.
Procurement Security Plan (SSIP)
The Procurement Security Plan (SSIP) is a forum designed to provide support to small and medium-sized enterprises by simplifying pre-qualification processes, reducing the cost of health and safety assessments, and minimizing bureaucracy in the supply chain.
The registered members of the SSIP Forum have an open attitude towards third-party health and safety assessment schemes, such as those managed by major contractors or industry associations. The SSIP Forum registered member scheme benefits from the mutual recognition in both directions through the existing UKAS SSIP industry scheme and with other registered member schemes and certification assessment bodies.
The evidence obtained from the official website of SSIP confirms that since 2016, based on the mutual recognition agreements reached with all SSIP forum members, over 124 million pounds has been saved for the industry. The SSIP forum membership program provides purchasing managers with the opportunity to interact with over 71,000 organizations that have obtained health and safety certifications. Recognition is the verification of compliance with laws and regulations and supports the consistency of the SSIP forum membership program.
Supply Chain Security Management System Certification (SCSMS)
The accreditation body assesses the ability of the certification body to provide ISO 28000 certification for supply chain security management systems. The ISO 28000 standard requires organizations to establish, implement and continuously improve supply chain security management systems, including relevant aspects that are crucial for ensuring the security of the supply chain, such as terrorist threats, fraud, and maritime robbery, which have a significant impact on enterprises.
The quality and traceability of the internet service supply chain
The internet service of the French chain supermarket uses a platform to effectively identify, analyze and monitor all suppliers, components and production locations in its supply chain, involving over 4,200 suppliers from 41 countries.
This platform can comprehensively manage all the different entities involved in the supply chain, collect and verify the certifications of suppliers, and provide targeted suggestions based on each supplier's control over the process. This enables the company, whether as a manufacturer or a retailer, to effectively determine the source of products and reduce related risks.
Conclusion
In conclusion, standards + conformity assessment = value and trust. That is to say, standards and conformity assessment are like two sides of a coin. Only when both sides are combined can they bring value and trust to the supply chain. If any side of the coin is missing, then the other side of the coin will have no value at all.
In the context of global economic integration, standards and conformity assessment can provide standardized, systematic and professional support for enterprises to establish and maintain effective, safe and stable supply chains. Correct understanding and application of standards and conformity assessment will undoubtedly bring real and practical value to enterprises, thereby contributing to achieving long-term sustainable development.





