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Jemshah
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Asked: 2023-01-08T04:35:52+00:00 In:

Explain five reasons that may make an organization to undertake pre-shipment inspection for its materials requirement. (10 marks)July 2020

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Explain five reasons that may make an organization to undertake pre-shipment
inspection for its materials requirement. (10 marks)July 2020

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    1. Quality control: Pre-shipment inspection allows the organization to ensure that the materials it is purchasing meet the required quality standards. This can help to prevent costly problems such as defective or non-conforming materials, which can disrupt the production process and result in lost sales or customer dissatisfaction.
    2. Cost savings: By identifying and addressing quality issues before the materials are shipped, the organization can avoid the costs associated with returning or reworking defective materials. This can help to reduce waste and improve the overall efficiency and cost-effectiveness of the materials procurement process.
    3. Risk management: Pre-shipment inspection can help to mitigate the risk of purchasing materials from unreliable or untrustworthy suppliers. By verifying the quality and conformity of the materials before they are shipped, the organization can reduce the risk of costly delays or disruptions to its operations.
    4. Legal compliance: In some cases, pre-shipment inspection may be required to ensure that the materials being purchased comply with relevant regulations or standards, such as safety standards or environmental regulations.
    5. Customer satisfaction: By ensuring that the materials being purchased are of high quality, the organization can help to improve customer satisfaction and build trust with its customers. This can be particularly important in industries where product quality is a key factor in customer loyalty.
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