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ERP Terms for Beginners
Confused by acronyms and jargon? Explore our one-stop glossary to quickly master core ERP terms—no tech background needed.
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Receiving Inspection

Receiving Inspection

Why receiving inspection matters

Receiving inspection prevents incorrect or defective goods from entering inventory. Without it, errors can flow downstream into stock records, production, or customer deliveries. Early detection reduces return costs, avoids inventory inaccuracies, and provides clear evidence for supplier disputes.

Common inspection criteria

- Delivered quantity vs. purchase order

- Product condition or visible damage

- Specification or model correctness

- Packaging and labeling compliance

Receiving inspection best practices

Define clear acceptance criteria

Set clear standards for quantity, quality, specifications, and packaging before goods arrive. This gives inspection teams an objective reference, ensuring consistent decisions across products and inspectors.

Use a sampling plan

Instead of inspecting every item, check a representative sample based on risk and volume. This balances inspection accuracy with efficiency and avoids unnecessary delays in receiving.

Document inspection results

Record all findings, including defects and non-conformances. Clear documentation supports supplier communication, dispute resolution, and traceability for future audits.

Segregate non-conforming items

Clearly label and separate rejected goods from approved inventory. This prevents accidental use or shipment and protects inventory accuracy.

Take corrective action with suppliers

Track recurring issues and work with suppliers to identify root causes. Structured follow-up improves product quality and strengthens supplier accountability over time.

Use standardized inspection checklists

Provide inspectors with a consistent checklist covering quantity checks, visual inspection, and key specifications. This reduces missed steps, improves consistency, and supports training for new staff.

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