Module 6 · Quality + warehousing

Incoming Quality Inspection & Putaway

IQI process, inspection lots, usage decisions, putaway strategies, storage bin assignment, binning rules and warehouse structure in SAP EWM/MM.

Course reading

Understand the process

Part 1

Separate delivered from usable

Receiving confirms that goods arrived; incoming quality inspection (IQI) confirms whether they meet the specification. A sample, measurement or document check may be required before release. In SAP, an inspection lot and a usage decision document whether the lot is accepted, blocked, reworked or rejected.

A line can report a shortage even while pallets are sitting in the receiving area. If inspection takes two days and putaway another day, the real available date is later than the truck arrival. Measure each stage rather than treating all received stock as usable.

Part 2

Give accepted goods an address

Putaway assigns released goods to a suitable storage location and bin. Consider weight, handling equipment, temperature, dangerous-goods rules, expiry and picking frequency. Record the bin in the warehouse system and verify the physical label matches it; otherwise stock exists on paper but cannot be found.

Trace one PO line through arrival, inspection, usage decision and final bin. For any delay, identify its actual owner: missing documents, an overdue test or a full storage zone. That makes the improvement actionable instead of simply asking the warehouse to work faster.

What you must take away

Stock under inspection is not available stock — the system must show the difference.
The usage decision is the moment cost is committed: accept, reject, rework or deviate.
Putaway strategy decides how long every future pick takes.

In the SAP process

Goods receipt posts to quality inspection stock when the inspection type is active.
Record results, then make the usage decision to move stock to unrestricted, blocked or return.
Confirm the warehouse task so the bin and quantity are recorded at putaway.

Case study

Fast receipts, slow line

Setting. A store receiving 60 to 80 inbound lines per day with a two-person inspection team.

Problem. Material was physically in the building for days before production could use it, and the line kept raising shortages for stock that was already received.

How it was investigated

Measured the gap between goods receipt posting and usage decision per line.
Separated items needing genuine inspection from items with a long clean history.
Checked how putaway bins were chosen — mostly 'wherever there is space'.

What was changed

Applied skip-lot inspection for suppliers with a proven clean record and kept full inspection for the rest.
Introduced fixed bins for fast movers close to the issue point.
Posted the daily list of stock awaiting a usage decision on the store board.

Outcome. Receipt-to-usable time dropped and shortage calls for already-received material largely disappeared.

Lesson: Receiving is not finished at the goods receipt; it is finished at the usage decision and the bin.

Illustrative composite of common shop-floor situations — no client names or confidential figures.

Practical template

Incoming inspection and putaway log

Track each receipt from gate to usable bin with a clear time stamp.

GRN	Material	Qty	GR time	Inspection result	UD time	Bin	Hours to usable
5000231	MAT-1042	500	09:20	Accepted	13:10	A-04-12	3.8

How to use it

Track hours-to-usable weekly and chart it — this is the receiving KPI that production feels.
Any line over 24 hours needs a written reason.
Fixed bins for the top 20% of picks; random bins only for the tail.

Download workbook & KPI template (PDF)

Quick quiz — check your understanding

1. Incoming inspection checks:
2. Quality-inspection stock in SAP is:
3. Sampling inspection means:
4. Putaway is:
5. Rejected material should be:

Earn your certificate