Industry codes: how important?

  • Thread starter Thread starter Jacob Beckman
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Jacob Beckman

I'm trying to finalize the big registrar selection decision and I'm wondering if anyone has info on how important the industry classification code is to the registration process and the "value" of our certificate. Like many small, specialized companies, the one I work for is difficult to classify. One registrar ("Reg 1") classifies us under pharmaceuticals/diagnostics/medical devices, while another ("Reg 2") considers us a pure chemical manufacturer. The truth is somewhere in between, or both depending on the product.

I'm faced with a dilemma in choosing a registrar: on one hand, if we go with Reg 1, the self-proclaimed world expert in med devices, we'll likely get raked over the coals, but the market advantage might be worth it. On the other hand, Reg 2 will send chemical manufacturer auditors who will probably judge us less intensely, but that might not be a good thing.

Furthermore, Reg 1's customer service stinks, while Reg 2's is stellar.

I need help with the following concepts:

1. Does anyone's customers care what industry code they were audited to? Does the specific code impart any market advantage?

2. Do auditors audit differently based on the industry classification?

Thanks a million!
 
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Sure they do

Jacob Beckman said:
I need help with the following concepts:

1. Does anyone's customers care what industry code they were audited to? Does the specific code impart any market advantage?

2. Do auditors audit differently based on the industry classification?

Thanks a million!

You're thinking is sound and quite common when searching for which environmental regulations you should adhere to. Choose the one that makes more sense to you and keep those environmental auditors out of the house. Most Customers could care less about your SIC. We faced the same dilemma a few years ago. Choosing one classification would have required tremendous resources to comply with regulations. Another, while requiring certain monitoring, was far less intrusive on the business by outsiders. I confess that I have no idea about any marketing impact your SIC has on you. I do know that risk assessment criteria is based on the particular SIC. Good topic. You can bet that the environmental gurus have another take on it. ;)
 
Welcome to the Cove Jacob. In my experience, auditors audit to the Standard, not code. In our industry, automotive, I don't know of a distinct advantage of one code over another as long as the code fits your business. One of the auditors here could clarify but I think there is a requirement for the registrar to be listed for the code you specify.

As far as registrars go, I would take the one that will give you the most bang for the buck even if it means they are tougher. It costs a lot for registration and with a tough registrar you may find you get some good feedback that will help you in the long run.

Whatever you do, be sure you look from your company's advantage and don't get stuck putting up a piece of worthless paper. Put in a good system then choose a registrar who will help you maintain it. Ask questions first and don't hold back. Just because someone says they lead the industry doesn't mean they are good for you. Sometimes the big guys are so inflexible they want every client to be cloned.

Just some thoughts from my experience.

Dave
 
Just another thought

Jacob Beckman said:
I'm trying to finalize the big registrar selection decision and I'm wondering if anyone has info on how important the industry classification code is to the registration process and the "value" of our certificate. Like many small, specialized companies, the one I work for is difficult to classify. One registrar ("Reg 1") classifies us under pharmaceuticals/diagnostics/medical devices, while another ("Reg 2") considers us a pure chemical manufacturer. The truth is somewhere in between, or both depending on the product.

Dave's post caused me re-think my post. While discussing the applicable SIC Code, I referred to environmental impact on selecting the Code. The assumption was that this would also apply to what type of registration you would eventually end up with.
Why would you let an outside agency determine your classification? My experience is that you determine what the company's SIC is. Then you select the appropriate Registrar. You should already have an SIC Code to determine Insurance coverage. No? If the truth is "somewhere in between" depending on the product, it appears you have to select the stringent one. You can encompass lesser product in the more comprehensive SIC, not the other way around. ;)
 
Only as reference

Please take a look to this article wrote in 1996:
https://www.qualitydigest.com/oct96/scicch.html.
My personal point of view is that the SIC code is an important matter in the process of registration.
 
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