Pre-Shipment Inspection

Pre-Shipment Inspection is a late-stage procurement control carried out when sufficient goods are completed and available for the agreed inspection before dispatch. It may be appropriate when:

• A new or insufficiently proven supplier is producing an important order
• The buyer wants independent evidence before authorising shipment
• Product quantity, workmanship or visible condition should be checked
• Specified dimensions or defined functional checks need to be performed where feasible
• Packaging, marking or labelling requirements are material
• Previous production issues or deviations require additional control
• The procurement value or identified risk justifies an independent inspection

PSI should be designed around the actual order. It is not a substitute for appropriate supplier qualification, production control or technical validation earlier in the procurement process.

Industrial products should not be inspected against a generic consumer-goods checklist. ArcMoni therefore coordinates the inspection around the project documentation and criteria approved for the specific order. Depending on the product and scope, this may include:

• Purchase order
• RFQ
• Current approved drawing revision
• Technical specification
• Approved sample or reference where applicable
• Packaging specification
• Marking and labelling requirements
• Client-approved inspection checklist
• Agreed sampling or inspection method
• Agreed acceptance criteria

The inspection scope should also define what the inspector is expected to check and which characteristics cannot be established during the inspection.

The exact checks depend on the product, available documentation, inspection method and agreed scope.

The inspection can record available quantity and relevant product identification such as model, part number, item reference or other agreed identifiers. Quantity observed at the inspection should be distinguished from quantities not available or not accessible for inspection.

Observable workmanship issues, finish, assembly condition, visible damage and other defined visual characteristics can be checked against the agreed criteria.

Defined measurable characteristics can be checked where the inspection scope, available equipment, access and measurement method permit. A PSI does not replace laboratory testing, engineering validation or specialist measurement outside the agreed inspection capability.

Defined functional checks can be performed where applicable to the product and inspection plan. The required function, method and acceptance criteria should be established in advance rather than improvised during the inspection.

Packaging can be assessed against agreed requirements, including relevant protection, packing method, condition and shipment preparation.

Product identification, labels, shipping marks and other agreed marking requirements can be checked where included in the inspection scope.

Documents required to be available at the inspection stage can be reviewed for presence and relevant agreed information. Document review during PSI does not automatically validate every underlying claim or certification.

Where included in the scope, the inspection can record whether the goods observed are packed or otherwise prepared for the intended next shipment stage. Shipment readiness does not constitute approval of freight, customs or logistics performance.

• 1. Review the Order & Technical Documentation — The available purchase order, RFQ, drawings, specifications and relevant product requirements are reviewed before the inspection scope is finalised.
• 2. Define the Inspection Scope — The buyer and ArcMoni establish which characteristics, quantities, documents and shipment-related items should be checked.
• 3. Agree the Checklist & Acceptance Criteria — The inspection checklist, applicable sampling approach and acceptance criteria are agreed before the on-site activity.
• 4. Confirm Inspection Readiness — The supplier confirms that sufficient goods are completed and available for the planned inspection. Where production is incomplete or goods are unavailable, this should be documented rather than treated as a completed PSI.
• 5. Conduct the On-Site Inspection — The inspector performs the agreed checks at the supplier or manufacturing location within the approved scope and available access.
• 6. Record Measurements, Observations & Evidence — Relevant measurements, observations, test results and photographic evidence are recorded as applicable to the inspection plan.
• 7. Document Non-Conformities — Observed deviations from the agreed criteria are documented and classified according to the approved inspection method where applicable.
• 8. Issue the Inspection Report — The buyer receives a structured report showing the completed inspection scope, findings, evidence, limitations and unresolved matters.
• 9. Buyer Makes the Final Shipment Decision — The client reviews the inspection findings and retains the final decision regarding acceptance, corrective action, re-inspection or shipment authorisation.

Depending on the agreed scope, the Pre-Shipment Inspection Report may include:

• Inspection date and location
• Supplier and factory details
• Purchase order and product reference
• Production and quantity status
• Inspection scope and sampling information
• Checklist results
• Measurements or functional checks performed
• Photographic evidence
• Observed defects or non-conformities
• Packaging findings
• Marking and labelling findings
• Documentation findings
• Shipment-readiness observations where included
• Unresolved issues and inspection limitations
• Overall result against the agreed inspection criteria

The report should show what was actually inspected and avoid implying that characteristics outside the inspection scope were verified.

Where an appropriate defect-classification system forms part of the buyer-approved inspection plan, product findings can be classified according to the agreed criteria, for example:

• CRITICAL — A defect classified as critical under the agreed inspection criteria.
• MAJOR — A defect classified as major under the agreed inspection criteria.
• MINOR — A defect classified as minor under the agreed inspection criteria.

The applicable definitions and acceptance thresholds should be agreed for the project rather than assumed from these labels alone. This classification is deliberately separate from supplier-level risk findings used in Supplier Verification or Supplier Audit. Product defects and supplier-level procurement risk are not the same thing.

A Supplier Audit and a Pre-Shipment Inspection answer different questions. A Supplier Audit asks: What can be observed about the factory's relevant manufacturing capability, processes and controls? A Pre-Shipment Inspection asks: What did the agreed inspection find in the specific goods available before shipment? A satisfactory factory assessment does not guarantee that a later production batch will conform to the buyer's requirements. Likewise, a satisfactory PSI for one order does not establish the supplier's broader manufacturing capability or future performance.

Production Monitoring takes place during order execution and is intended to provide earlier visibility over agreed production progress, milestones and identified deviations. Pre-Shipment Inspection is a later control focused on the goods available before shipment. For higher-value, technically complex or higher-risk procurement projects, both controls may be appropriate because they address different stages of execution.

A non-conformity does not automatically determine the commercial decision. Depending on the finding and the buyer's requirements, the next step may include:

• Supplier clarification
• Segregation of affected goods
• Rework or corrective action
• Additional evidence
• Re-inspection
• Technical review by the buyer
• Adjustment of shipment timing
• Rejection or other commercial action determined by the client

ArcMoni can coordinate agreed follow-up activities, but the buyer retains final acceptance and shipment authority.

ArcMoni can coordinate independent on-site Pre-Shipment Inspections across Europe, China, Turkey and India, subject to the agreed project scope, facility access, product requirements and inspection capability required for the specific order. The inspection method should be defined for the actual product and location rather than assumed to be identical across every sourcing market or industrial category.

A Pre-Shipment Inspection provides evidence from a defined inspection activity at a specific point in time. A sample-based inspection does not prove that every unit in an entire shipment is defect-free. PSI also cannot guarantee:

• Future supplier performance
• Characteristics not included in the agreed inspection scope
• Technical conformity requiring specialist or laboratory testing that was not performed
• Prevention of damage after the inspection
• On-time transport or logistics performance
• That goods will remain unchanged after the inspection

The report records the findings and limitations of the completed inspection. Final product acceptance and shipment decisions remain with the client.

PSI can be requested as a standalone control for an existing supplier or used as part of a broader ArcMoni procurement project. Depending on the requirement, earlier stages may include Supplier Sourcing, Supplier Verification, Supplier Audit and Production Monitoring before the final pre-shipment control. The appropriate combination should reflect the actual procurement requirement and identified risks rather than automatically applying every service to every order.

Send the available:

• Supplier and factory details
• Purchase order or order reference
• Product information
• Drawings and technical specifications
• Quantity
• Approved samples or references where applicable
• Packaging and marking requirements
• Expected completion date
• Required inspection checklist and acceptance criteria where already defined
• Known production concerns or previous deviations

ArcMoni can use this information to define the appropriate inspection scope and coordinate the Pre-Shipment Inspection.