A failed inspection is information, not a verdict. Under an attribute sampling plan such as ISO 2859-1, the inspector draws a sample from the lot, counts defects and compares the count with an acceptance number and a rejection number set for the sample size and the quality level you chose. Reaching the rejection number means the lot did not meet the agreed standard. What happens next depends on what you agreed in the purchase order.

First, understand the defects

Read the report to see which defects caused the fail and whether they are systematic. A single defect type found across the lot, such as a wrong measurement or a wrong label, can usually be fixed with sorting and rework. Scattered random defects such as stitching faults suggest a quality problem across the lot. Ask for photos and for the defect classification, which should follow the definitions in your quality agreement.

The usual options

Options include: have the factory sort the whole lot 100 percent and rework or remove defective pieces, then re-inspect with a fresh sample; accept the lot as it is with a documented concession, perhaps with a price reduction or credit; accept part of the lot and hold the rest; or reject the lot. The ISO 2859-1 system also has switching rules that move to tightened inspection after repeated rejections, which you can use for later orders from the same factory.

Costs and time

Settle who pays for sorting, rework and the second inspection before anything is done; the PO should say, and the answer is usually that the supplier pays. A late shipment has its own cost. Under the Incoterms rule in your contract, risk passes to you at a defined point, so check the delivery point before the factory ships anything uninspected. A date pressure is not a reason to ship goods that fail.

Document the decision

Whatever you choose, confirm it in writing: which defects, what remedy, who pays, the new inspection date and the new ship date. If you accept with a concession, write it as a one-off for this lot. Keep the report and photos for the supplier review.

Prevent a repeat

Ask the factory for a corrective action on the root cause, and add an inline inspection on the next order so problems appear before the lot is finished.