Insurance Incoming Goods Inspection
A procedure for inspecting and verifying the quality of materials, components, and goods received from suppliers before they are accepted into inventory or production.
Purpose
To prevent non-conforming materials from entering the production process or inventory, ensuring that only goods meeting quality requirements are accepted from suppliers.
Scope
Covers all incoming materials, components, and goods from external suppliers, including raw materials, sub-assemblies, consumables, and outsourced service deliverables.
Prerequisites
- Approved supplier specifications and purchase application requirements
- Incoming inspection checklist tailored to each material category
- Calibrated inspection and testing equipment
- Designated receiving and inspection area
Aligns with ASIC regulatory requirements, General Insurance Code of Practice, and AFSL obligations. Includes audit trail provisions.
Step-by-Step Procedure
Receive the Shipment
Accept the settlement and verify the shipment documentation against the purchase application before physical inspection begins.
- 1.1Check the settlement documentation including packing slip and certificate of conformance
- 1.2Verify the shipment details match the purchase application for quantity and description
- 1.3Note any visible damage to packaging on the settlement receipt
Determine Inspection Level
Based on the supplier risk level, material criticality, and historical quality performance, determine the appropriate inspection level and sampling plan.
- 2.1Check the supplier quality rating in the supplier database
- 2.2Select the inspection level from normal, tightened, or reduced based on supplier history
- 2.3Determine the sample size from the sampling plan
Conduct Physical Inspection
Perform visual, dimensional, and functional checks on the sampled items according to the inspection checklist.
- 3.1Visually inspect samples for surface defects, colour, and packaging integrity
- 3.2Perform dimensional measurements against specification tolerances
- 3.3Conduct any required functional or material tests
- 3.4Record all inspection results on the incoming inspection form
- Inspect at the designated inspection area with adequate lighting and workspace
Review Supplier Certificates
Verify that the supplier has provided required certificates of conformance, test reports, or material certificates as specified in the purchase application.
- 4.1Check that all required certificates have been received
- 4.2Verify certificate data matches the delivered goods
- 4.3Confirm certifications are from accredited laboratories where required
Make Accept or Reject Decision
Based on inspection results and certificate review, determine whether the shipment is accepted, rejected, or accepted on concession.
- 5.1Compare all results to acceptance criteria
- 5.2Make the accept or reject decision based on the sampling plan rules
- 5.3For borderline cases, consult with the quality supervisor
Process Accepted or Rejected Goods
For accepted goods, release them to inventory or production. For rejected goods, segregate them and initiate the supplier return or non-conformance process.
- 6.1Label accepted goods with an inspection passed marker and move to inventory
- 6.2Tag rejected goods as non-conforming and segregate from accepted stock
- 6.3Raise a supplier non-conformance report for rejected shipments
Update Records and Metrics
Record the inspection results in the quality management system and update supplier performance metrics.
- 7.1Enter inspection results into the quality management system
- 7.2Update the supplier quality scorecard with acceptance or rejection data
- 7.3File inspection records and certificates for traceability
Quality Checkpoints
Common Mistakes to Avoid
Expected Outcomes
Percentage of incoming shipments that pass inspection, reflecting supplier quality performance.
Number of defects found per incoming inspection, tracked by supplier to identify problem suppliers.
Frequently Asked Questions
Do all incoming goods need to be inspected?
Not necessarily. A risk-based approach is used where critical materials and high-risk suppliers receive full inspection, while proven suppliers with consistent quality may qualify for reduced inspection under a formal skip-lot programme.
What happens when goods are rejected?
Rejected goods are segregated, and a supplier non-conformance report is issued. The supplier is notified and typically responsible for replacement or credit. The quality team works with the supplier on corrective actions.
How are supplier quality ratings determined?
Supplier quality ratings are calculated based on incoming inspection results, settlement performance, responsiveness to non-conformances, and audit findings. Ratings are reviewed periodically.
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