Use an incoming goods inspection checklist when receiving goods

Why is an incoming goods inspection with a checklist necessary?

Incoming goods inspections are a quality control mechanism for incoming shipments, where the quality of delivered goods is checked according to specified criteria. The purpose of these checks is to ensure that the received goods match the order, are not damaged, and meet your business’s quality requirements. Goods undergo rigorous testing after being manufactured following a factory acceptance test procedure but should still always be checked upon arrival. If possible, incoming goods inspections should be conducted in the presence of the supplier.

Quality managers use checklists during incoming goods inspections to make assessing shipments easier. These checklists ensure that nothing is forgotten during the inspection. In this way, defective goods are more easily detected and complaints can be made more quickly. Goods inspection prevents customers from being dissatisfied and maintains the quality of the end product.

Incoming goods inspections are mainly carried out in the following industries:

• Catering, retail, and other food businesses
• Businesses that further process goods (production companies)
• Logistics service providers
• Shipping companies

Goods inward inspections reduce costs and improve quality standards and customer satisfaction. Many companies use their own labeling system for incoming goods inspection, which tells them what actions are necessary after the incoming goods inspection.

Table of contents

1. What should an incoming goods inspection contain?

2. What are the different types of inspections?

3. Marking system in incoming goods inspections

4. How do you test and inspect incoming materials?

5. A mobile app for incoming goods inspections

What should an incoming goods inspection contain?

A thorough incoming goods inspection happens immediately to identify any defects. This also means checking that you’ve received the correct number or quantity of goods.

To get the most out of the process, proceed as follows during the incoming goods inspection:

1. Check delivery note
2. Assign delivery bill to corresponding order
3. Check type and/or perform quantity check
4. Perform quality check
5. Check whether defects are present
6. Confirm all items
7. Create a goods receipt note (delivery note)

Make sure to clearly structure and standardize all your goods inspections. First of all, check whether the amount of goods is correct. Check the delivery bill and order form to ensure completeness. If the delivered goods are up to quality standards, prepare a goods receipt, indicating the name of the inspector and the date and time.

What are the different types of inspections?

Inspecting goods before selling goods to customers is an essential part of customer satisfaction. That’s why inspections are conducted at every stage of the incoming goods process.

There are three types of incoming inspections:

1. Pre production
2. In-line
3. Final

Pre production
A pre-production inspection takes place before manufacturing starts and inspects the raw materials that will go into the final product. This could mean double-checking a shipment of cloth is free from holes or tears.

In-line
An in-line inspection takes place in the middle of production to make sure everything is running smoothly. In the garment industry, this could mean double-checking that clothes are being stitched correctly

Final
The final inspection occurs when the manufacturing process is completed. Final inspections ensure the quality of the product meets industry standards and customer satisfaction will be met.

Every step in an inspection is vital to quality assurance. Faulty, broken, or damaged materials can cost a company its bottom line, so it’s important that inspections are done correctly. Products go through multiple quality checks throughout the manufacturing process, but the first check is arguably the most important because it’s the foundation of all future checks. Each check after the first is a fail-safe in case something was missed during the initial inspection.

Marking systems in incoming goods inspections

An incoming goods inspection checklist specifies exactly which aspects of shipments to check during a quality inspection; for example, the size, color, condition, and packaging,. To ensure that an inspection result triggers a specific action after inspection, many companies use a marking system for goods acceptance.

There are usually three levels of incoming goods inspection: 1. Accepted, 2. Conditionally accepted, and 3. Rejected. The criteria for each vary by company. You decide what happens to the goods after delivery.

1. Accepted

The delivered goods are free of defects. You can either store them in the warehouse or transfer them to the next operation.

2. Conditionally accepted

The delivered goods were damaged during transport, have functional or dimensional defects, or improper markings. Acceptance is initially refused and the supplier must fix or replace the shipment.

3. Rejected

The delivered goods have significant defects. In these cases, the shipment is often returned or rejected. Depending on the type of goods and delivery agreements, however, companies may have to dispose of the rejected goods or classify them according to other criteria. In the retail industry, for example, defective goods are sold as second-choice items at a lower price.

How do you test and inspect incoming materials?

Materials inspections are essential, so that faulty, defective, or damaged materials aren’t then made into faulty, defective, and damaged products. There are several benefits to these inspections

Foreign suppliers

If you get your goods from unfamiliar or overseas suppliers, you’ll want to be extra careful when conducting your receiving inspection. Many of these companies won’t share the same quality standards as yours. Not checking materials for quality control could hurt your customer loyalty.

You shouldn’t relax your inspection diligence for domestic suppliers either, though. Gone are the days of quality over quantity.

Preserving quality

Ensuring that all received materials meet quality standards is a necessary part of developing quality products. You might purchase substandard materials without even knowing, but your customer will certainly pick up on the difference.

Save money

Yes, there is an initial upfront cost. Time is money and inspections take time. But in the long run, materials inspections help grow your business. Spending time to develop higher quality products opens you up to more customers down the line.

Below is a seven step guide to materials testing and inspection:

1. Pre-inspection
   Preparing to receive goods involves clearing a space to store materials before production begins. This is when you’ll review the order and make sure it’s been fulfilled.
2. Take photos
   There’s nothing more conclusive than photographic evidence. Take the time to photograph or record a video of the incoming goods. Be sure to stay organized and attach the JPEG file to the inspection form. It’ll be easier if you switch to paperless inspections, for a more streamlined and effortless documentation process.
3. Review specifications
   Review the specific project specifications to verify that the goods received match the material grade, scope, and type required. This is especially important if the project’s success depends on meeting state and federal regulatory requirements.
4. Physical condition
   If the shipment is large, it might be a good idea to implement random checks. This will save time and energy, because instead of checking every single good that comes through the door, you can accept or reject the shipment based on the selected sample size.
5. Confirm supplier
   It’s good practice to double-check that the received goods are from the correct supplier. Finding out the wrong shipment was delivered after the fact is a headache no one wants to deal with. If you receive the wrong shipment, you can send a notice of default to the supplier, but it’s better to reject the shipment immediately than to have to deal with the paperwork.
6. Confirm certifications
   If the project requires certified materials, they should come pre-stamped or stickered with the appropriate labels. If not, continuing manufacturing with these materials will result in noncompliance with state or federal regulations and could result in fines or lawsuits.
7. Place in storage
   Some industries require goods to be properly stored upon arrival. Working in food service, for example, means storing produce or meats at a controlled temperature. An unloading dock is a busy place, and it’s easy for things to slip through the cracks. To avoid this, you’ll want to use of tags or labels so your goods make their way to their designated location.

At the end of the day a successful incoming goods inspection —whether it ends in a pass or a fail— is a critical means of upholding quality and safety standards. Not only that, but standardized inspections keep the reputation of your business intact.

A mobile app for incoming goods inspections

Lumiform is a powerful mobile checklist app that helps you perform incoming goods inspections correctly. This prevents quality issues from arising. By using Lumiform for your goods inspections, you’ll get:

• Individual digital forms: The flexible form builder makes it possible to create new individual checklists at any time and to adapt them again and again.
• First class customer service: Lumiform’s excellent 24/5 support will reliably answer all your questions about the app when you need assistance using the tool.
• Scheduling and notifications: The Lumiform app helps you stick to your schedule. All employees receive notifications about the procedure and due dates. Managers automatically receive notifications about overdue assignments or problems that arise.
• Faster issue resolution: The data you collect from inspections is stored in the Analysis Tab. Here, you can access all data and view your performance reports broken down by time, location and department. This helps you quickly identify causes and problems so you can fix them as quickly as possible.
• Simple tracking: Monitor your team’s inspection performance and identify opportunities to improve the process and efficiency of your operations.
• Integrations: Connect Lumiform’s software to enterprise software systems, and use it alongside programs like Microsoft Power BI.