For any Tier 1 automotive supplier, being placed on Controlled Shipping is a high-stress, critical event. It’s a formal notification from your OEM that a quality non-conformance has been detected, and your standard processes are no longer trusted to protect their assembly line. Understanding the distinction between Controlled Shipping Level 1 (CS1) and Controlled Shipping Level 2 (CS2) is the first step to resolving the issue, satisfying your customer, and exiting the mandate as quickly as possible.

This guide will clearly define both levels, explain the triggers for escalation, and show you how to navigate this challenge effectively.

What is Controlled Shipping Level 1 (CS1)?

Controlled Shipping Level 1 (CS1) is a mandate from your OEM that requires you, the supplier, to implement an enhanced inspection process *at your own facility*. This process must be separate from and in addition to your normal in-process quality checks and final inspection.

• Who Inspects: Your own employees are responsible for performing the inspection.
• What it is: A redundant, 100% inspection, sorting, or rework process to isolate defective parts before they leave your plant.
• The Goal: To re-establish certification that all parts being shipped to the OEM are 100% defect-free. You must provide clear data and documentation to your customer proving the effectiveness of this containment.

CS1 is essentially your OEM’s “warning shot.” They are giving you the chance to fix the problem internally, but they are requiring you to formally prove you are doing so.

What is Controlled Shipping Level 2 (CS2)?

Controlled Shipping Level 2 (CS2) is a serious escalation. It is mandated when CS1 fails to contain the defect, the issue is severe, or the OEM has lost confidence in the supplier’s ability to manage the problem internally.

In CS2, the OEM mandates that an independent third-party company must be hired (at the supplier’s expense) to perform the inspection. This third-party inspection is done *in addition* to the supplier’s own internal CS1 inspection.

• Who Inspects: A third-party inspection provider, like PTI, is required. The third party provides an unbiased, independent verification.
• What it is: A *second* layer of 100% inspection that serves as an independent firewall, verifying that the supplier’s containment efforts are working and ensuring no defects escape.
• The Goal: To provide the OEM with independently verified data and an absolute guarantee of defect-free parts while the supplier focuses on root cause analysis and permanent corrective actions.

CS1 vs. CS2: The Key Differences at a Glance

This is the most critical distinction for suppliers. The main difference between cs1 vs cs2 containment is who performs the inspection and the level of trust the OEM has in the supplier’s internal processes.

How to Successfully Exit Controlled Shipping (CS1 & CS2)

Getting out of Controlled Shipping is not just about sorting parts; it’s about proving your process is fixed. The exit criteria are strict and always require OEM sign-off. You will need to demonstrate:

1. Flawless Containment: A significant period (e.g., 30 consecutive shipping days) with zero defects found by the containment inspection *or* by the OEM.
2. Robust Data: Clear, daily reporting of inspection data (parts sorted, defects found, defect type) shared with the OEM.
3. Effective Root Cause Analysis (RCA): You must identify the *true* root cause of the problem, not just the symptom.
4. Permanent Corrective Action (PCA): You must implement and validate a permanent fix that makes it impossible for the defect to occur again.

How a Third-Party Partner Turns a Crisis into a Solution

Facing a controlled shipping mandate is stressful, but you don’t have to go through it alone. An expert third-party provider is your most valuable asset in this situation.

• In CS1: While you manage the CS1 inspection internally, a partner like PTI can provide expert consulting or supplemental inspectors to ensure your CS1 is 100% effective, helping you *avoid* a costly escalation to CS2.
• In CS2: We *are* the mandated third-party provider. We deploy rapidly with IATF-certified inspectors, unbiased data reporting, and expert work instruction development. We satisfy the OEM’s requirements immediately, which protects your quality score and gives your engineering team the breathing room to focus on the permanent fix.

Navigating automotive quality containment is our specialty. We provide the expertise and data to help you exit CS2 and get back to business as usual, faster. For a complete overview of the process, see our Ultimate Guide to Quality Containment.