Controlled Shipping is the formal containment the OEM imposes when a quality problem persists: in CS1 the supplier performs it, and in CS2 an independent third party approved by the OEM. RIDYS Group runs CS1 and CS2 containments in San Luis Potosí and the Bajío region.
We offer Controlled Shipping Level 2 (CS2) as a third party and personnel support at Level 1 (CS1), according to the customer’s requirements, at the customer’s plant. Our own personnel and on-site supervision. We are ISO 9001:2015 certified and REPSE (Mexico’s Registry of Specialized Service Providers) registered.
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Automotive quality containment starts with understanding that a quality escape is not just a defect: it is the warning sign of a systemic failure.
When an OEM activates Controlled Shipping, the goal is no longer to inspect more. It is to contain the risk, regain customer trust, and eliminate the root cause.
At RIDYS we implement Controlled Shipping Level 1 (CS1) and Level 2 (CS2) under a structured, measurable methodology aligned to the requirements of the OEM.
| Appearance | CS1 | CS2 |
|---|---|---|
| Control Type | Reinforced Internal Containment | Third-Party Validated Containment |
| Administered by | The Supplier | RIDYS, approved by the OEM |
| Report | The supplier reports to the OEM | The Third Party Reports Directly |
| Escalation Level | First Formal Containment | High Risk / Loss of Trust |
| Cost Impact | Moderate | Significant |
CS1 Protects Production. CS2 Protects Customer Trust.
CS2 specifically requires an independent organization that is technically competent and approved by the OEM.
Implementation of Controlled Shipping at a Tier 1 Supplier
Industry: structural component of the suspension · Monthly volume: 45,000 units · Critical characteristic: diameter dimensional tolerance · Impact on the OEM: assembly line stoppage
| Indicator | Value |
|---|---|
| PPM (3-Month Average) | 1,850 |
| Cpk | 0.87 |
| Recurring incidents | 3 |
| FMEA status | Out of date |
| Risk Level for the Customer | High |
The problem was not just the defect. It was the failure of the detection system before shipment.
Segregated containment area · 6 additional inspectors · 100% inspection of the critical characteristic · Double check per shift · Green label identification per lot · Daily review of containment performance
| Indicator | Before | After |
|---|---|---|
| Internal PPM | 1,850 | 420 |
| Escapes to the Customer | 2 | 0 |
| Suspect Units Contained | — | 3,780 |
Tools applied: 5-Why analysis, capability study, and tool wear investigation.
Critical finding: progressive tool wear not detected due to insufficient monitoring frequency.
| Metric | Before | After |
|---|---|---|
| Cpk | 0.87 | 1.67 |
Due to historical recurrence, the OEM required the activation of CS2.
RIDYS as an independent third-party provider · Physical and operational segregation · Parallel inspection process · Direct reporting to the OEM · Daily statistical tracking of performance
| Indicator | Result |
|---|---|
| PPM | 12 |
| Escapes | 0 |
| Sustained Cpk | 1.62 |
| Customer Audit Rating | 95 % |
| Indicator | Before | After |
|---|---|---|
| PPM | 1,850 | 8 |
| Cpk | 0.87 | 1.62 |
| Customer Complaints | Frequent | 0 |
| Supplier Status | At risk | Restored |
Financial exposure avoided, estimated: more than US$2.8 million per year.
Controlled Shipping is not extra inspection. It is a structured quality management system for a crisis.
Benefits of a correct implementation: immediate risk containment, elimination of escapes to the customer, rapid PPM reduction, structured root cause validation, protection of the supplier rating, prevention of lost business, and faster restoration of OEM trust.
Who requests and runs Controlled Shipping: the Quality Manager, Supplier Quality Engineers (SQE), and the customer’s crisis management team.
| Level | Typical duration |
|---|---|
| CS1 | 30 to 45 days |
| CS2 | 30 to 90 days, depending on severity |
Typical exit criteria: sustained zero escapes, stable Cpk above 1.33 or the OEM requirement, updated FMEA and Control Plan, and a passed customer audit.
The cost of a Controlled Shipping program depends on the volume contained, component complexity, number of inspectors required, program duration, and the customer’s reporting requirements.
In most cases, that cost is lower than the alternatives: line stoppages, chargebacks, warranty claims, and lost contracts.
Controlled Shipping requires structured documentation on four fronts.
Operational report. Daily containment results, defect trend analysis, recorded inspection volume, and segregation tracking.
Statistical report. PPM trend, Cpk monitoring, escape analysis, and root cause validation data.
Documentation update. 8D reports, updated FMEA, revised Control Plan, and Layered Process Audit results.
Communication with the OEM. Daily summary reports, weekly executive status, and a formal presentation package for exiting containment.
It fails when it is treated as extra inspection, a temporary labor boost, or an administrative compliance formality.
It works when it becomes a structured quality firewall, a statistically validated containment system, a strategy for eliminating the root cause, and a reputation recovery mechanism.
RIDYS has supported Tier 1 suppliers in achieving: a 95% PPM reduction, zero escapes after release, Controlled Shipping closure in under 70 days, and full restoration of OEM trust.
We Don’t Just Inspect Parts. We Stabilize Systems, Protect Contracts, and Restore Operational Trust.
ISO 9001:2015 certification (Orion Registrar, ANAB accredited) and REPSE registration ARR197/2024 with Mexico’s Ministry of Labor (STPS).
It is the set of actions that isolates suspect material, inspects it against a customer-approved criterion, and releases only conforming product while the supplier eliminates the root cause. It covers inventory at the plant, in transit, in storage, and at the customer’s plant.
Containment is the immediate response of the supplier to a quality problem. Controlled Shipping is the formal containment imposed by the OEM when the problem persists or is serious: in CS1 it is carried out by the supplier itself and in CS2 it is carried out by an independent third party approved by the OEM, who reports directly to the customer.
As a reference, a CS1 lasts from 30 to 45 days and a CS2 from 30 to 90 days, depending on the severity. Containment ends when the exit criteria defined by the OEM are met, not when a deadline is met.
Per-shift report with parts inspected, conforming and nonconforming, defect type and location, plus identification of released material. That information supports the exit request to the OEM.
Describe the material, the defect, and the volume, and we will send back a proposal with rate, start-up time, and reporting scheme.
RIDYS Group · Av. Universidad 1085, Azteca Norte, 78310 San Luis Potosí, S.L.P. · Phone: 444 171 4514
