Inhouse Incorporation: Risks when reworking or replacing goods

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When performing a pre-shipment inspection, the non-conformities identified usually oblige the supplier to rework or replace the goods that the buyer cannot accept. However, the buyer should know that he is taking risks by taking such decision. Which are the risks when reworking or replacing goods? What are the solutions to avoid them?


Risks when reworking or replacing goods

Time is precious and when inspecting the goods only at the end via the pre-shipment inspection, some issues can’t be solved so easily, especially if the goods should be reworked or replaced.

Risks when reworking the goods

·         The finished goods manipulation can create new defects
·         There is no warranty the supplier can really improve the defect(s)
·         The delivery is delayed for few days

Risks when replacing the goods

·         There will be shipment delays of days or weeks
·         Some suppliers require a financial support because replacing goods means that they need to produce the goods again which cost money. A long process of negotiation starts which is time consuming and cost money.

The advantages of the during production inspection

At the contrary, if the buyer performs a during production inspection prior to the pre-shipment inspection, he can identify the defects on time, avoid long negotiations with the supplier and ensure the supplier will be willing to work with him in correcting the non-conformists.
The quality control during the production limits production delays, and complex business relationship with the supplier. The pre-shipment inspection becomes a complementary service that confirms the production follow up has been well done.
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