Cost of Poor Quality
Definition
Failure in commodity grading and quality testing results in non-compliant products detected via National Residue Survey, leading to rework, rejected shipments, and lost revenue.
Key Findings
- Financial Impact: 1-4.4% of tested batches rejected (e.g., 4.4% non-compliance in horticulture 2017-18), equating to AUD 10,000+ per rejected truckload
- Frequency: Annual monitoring programs detect 2-5% failure rate
- Root Cause: Manual grading errors in moisture, protein, foreign matter testing
Why This Matters
The Pitch: Wholesale Raw Farm Products players in Australia 🇦🇺 lose 1-5% of batches annually to quality failures in testing. Automation of grading and testing eliminates this risk.
Affected Stakeholders
Quality Managers, Farm Owners, Wholesalers
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Capacity Loss
Compliance & Penalties
AR Dispute Inflation from Aging Errors
Bad Debt Write-offs from Credit Limit Breaches
Delayed Accounts Receivable Collections
Basis Pricing Errors
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