Every business wants to maximize their profit and thus for it they try to minimize costs. While trying to minimize cost most of the time businesses tries to avoid any things that will cost them extra. Thus, while importing products from China most companies tries to avoid pre-shipment inspection China. For them this is just another cost from which they cannot derive nay benefits! However, the question is it true?
Ever company expects that their supplier will produce and send them products as per the specifications. When they will get products of the quality that is being ordered by them then what is the use of Pre shipment inspection China?
Although it is expected that you will get the products as per the standard quality yet most of the time the fact is different. After the shipment is delivered it is found that many goods are defected and they need repairs or even replacement. Now, this is going to be a nightmare for you and your business. Actually, it is found that then you have to bear the cost of poor quality.
What is the cost of poor quality?
Cost of poor quality refers to the cost that is incurred by business due to low quality or any defect in the products. They can be broadly divided into
- Internal failure cost is that cost which incurs when the defect in the product is identified before it is sold to the customers. The products is repaired and then sold.
- External Failure cost on the other hand is identified after the product reaches the customers. The customer either gets the products repaired or asks for claim. The cost incurred for maintaining the goodwill is the external failure cost.
- Appraisal costs incurs when businesses invest money in those processes that ensures that the quality of the product is as per the standard set.
Pre shipment inspection cost is thus a type of appraisal cost. You have to bear it but once it is done the failure costs will minimize.
How is that possible?
The next question that arises is how pre-shipment inspection china helps in reducing both the internal and external costs?
When pre-shipment inspection is done then you will get a report on the quality of the products that are being dispatched. Many times it is found that the quality send is very poor. Once you receive it you cannot send it back easily as then you have to bear the transportation costs again. Thus, in order to minimize that costs you get it repaired or have to sell the products at a lower costs, as the quality is inferior to expected.
Once pre-shipment is done you get a report and it highlights different aspects about the product that you want to know. If it is not satisfactory then you can hold the shipment and ask for change in order. Thus this way you can reduce your costs a lot. You can discuss the whole thing with the supplier and then get the products delivered after you get satisfactory ones. Thus, you do not have to bear the extra costs if you do pre shipment inspection China.