Many ways to Minimize Failures in your Purchasing Process
This article discusses about second party and third party Industrial inspection activities that are done to certify purchased equipment or tool has the same quality and quantity that stated in their purchase order.
The commodity inspection and Pre-shipment inspection are the same in many cases.
In pre-shipment inspection, the vendor must make all arrangement that a good to be inspected before loading. But commodity inspection is different, the buyer and manufacturer might decide to do the inspection in the other places.
The buyer might decide to send its own inspector for its commodity or might decide to hire a third party commodity inspection agency to do it.
The goods inspector will review quality document, proforma invoice and purchase order before starting its job.
Commodity inspector supplies purchaser with an inspection report. The inspector then will issue the inspection release note if it is satisfied from the result of inspection.
When the manufacturer received the inspection release note, and then can make arrangement with the shipping company for transportation of goods. The seller must notify the inspector in advance to attend to its shop to witness the loading.
If the purchaser and seller transacted through a letter of credit, letter of credit, then an inspection certificate, issued by TPI commodity inspection agency must be provided to the seller's bank.
The certificate of inspection must not be issued prior of the specified date in bill of lading. It means the certificate must be issued when the commodity shipped, and seller has no more access to the commodity.
Nevertheless, if the vendor and purchaser have agreed for telegraphic transfer (T/T payment), then having an inspection certificate is not necessary.
When the vendor and purchaser have worked together for years and trust each other, then may decide not to use from LC payment system and make transaction directly by them.
The inspection certificate that is used for bank credit system may not be used for telegraphic payment model. The buyer may only request for the inspection visit report and sometimes for inspection release note.
The buyer is the authority that determines the inspection scope. The buyer may order for pre-shipment inspection or request a detail inspection for manufacturing stages. It may order for inspection based an inspection and test plan. The pre-shipment inspection may not reveal some defects. The scope of pre-shipment inspection is only visual quality not quality.
The cost of inspection will be depending to the buyer decision. If the buyer order a stringent inspection and want to supervise some tests that are done in the manufacturing process, then the cost will be a little higher. However in the same time there would be less risk for having the equipment with the defects.
The customers can do vendor inspection and commodity inspection together. In this case they must provide their inspection and test plan to their vendors. The inspection and test plan must be submitted with purchase order. This document identifies all hold, witness and review points in the manufacturing process. The hold points are the points that a manufacturer cannot do the listed tests without attendance of the purchaser inspector. The inspector must be in the vendor shop and supervise the tests. The witness points are the points that a vendor can carry out the tests without attendance of the inspector, but they must notify the purchaser inspector for inspection date. The purchaser might decide to waive witnessing of the test. The review point means review quality control records. Normally these reviews are done when an inspector is in the vendor shop for a hold or witness point.
The commodity inspection and Pre-shipment inspection are the same in many cases.
In pre-shipment inspection, the vendor must make all arrangement that a good to be inspected before loading. But commodity inspection is different, the buyer and manufacturer might decide to do the inspection in the other places.
The buyer might decide to send its own inspector for its commodity or might decide to hire a third party commodity inspection agency to do it.
The goods inspector will review quality document, proforma invoice and purchase order before starting its job.
Commodity inspector supplies purchaser with an inspection report. The inspector then will issue the inspection release note if it is satisfied from the result of inspection.
When the manufacturer received the inspection release note, and then can make arrangement with the shipping company for transportation of goods. The seller must notify the inspector in advance to attend to its shop to witness the loading.
If the purchaser and seller transacted through a letter of credit, letter of credit, then an inspection certificate, issued by TPI commodity inspection agency must be provided to the seller's bank.
The certificate of inspection must not be issued prior of the specified date in bill of lading. It means the certificate must be issued when the commodity shipped, and seller has no more access to the commodity.
Nevertheless, if the vendor and purchaser have agreed for telegraphic transfer (T/T payment), then having an inspection certificate is not necessary.
When the vendor and purchaser have worked together for years and trust each other, then may decide not to use from LC payment system and make transaction directly by them.
The inspection certificate that is used for bank credit system may not be used for telegraphic payment model. The buyer may only request for the inspection visit report and sometimes for inspection release note.
The buyer is the authority that determines the inspection scope. The buyer may order for pre-shipment inspection or request a detail inspection for manufacturing stages. It may order for inspection based an inspection and test plan. The pre-shipment inspection may not reveal some defects. The scope of pre-shipment inspection is only visual quality not quality.
The cost of inspection will be depending to the buyer decision. If the buyer order a stringent inspection and want to supervise some tests that are done in the manufacturing process, then the cost will be a little higher. However in the same time there would be less risk for having the equipment with the defects.
The customers can do vendor inspection and commodity inspection together. In this case they must provide their inspection and test plan to their vendors. The inspection and test plan must be submitted with purchase order. This document identifies all hold, witness and review points in the manufacturing process. The hold points are the points that a manufacturer cannot do the listed tests without attendance of the purchaser inspector. The inspector must be in the vendor shop and supervise the tests. The witness points are the points that a vendor can carry out the tests without attendance of the inspector, but they must notify the purchaser inspector for inspection date. The purchaser might decide to waive witnessing of the test. The review point means review quality control records. Normally these reviews are done when an inspector is in the vendor shop for a hold or witness point.
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posted by Vittoria @ February 04, 2013
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