A pre-shipment inspection, or PSI, is a final check of goods before they are shipped to ensure quality control and accuracy. It can be required for international shipping to adhere to a letter of credit and can also be part of a company’s quality control process. It can protect against damage claims and help identify areas for improvement.
A pre-shipment inspection is also known as a PSI. When companies, agencies, or government organizations ship goods or tangible products to customers, clients, or other organizations, they perform a pre-shipment inspection to check for multiple items on the shipment. Mainly they are checking the quality and accuracy of the order or whether the shipment includes the goods or products the shipment is supposed to contain. Essentially, it’s a final inspection of the shipment to verify quality control and accuracy before it goes out the door.
In international shipping situations, a pre-shipment inspection may be required to adhere to a letter of credit. When US companies deal with international companies, a letter of credit is often created to protect the monetary interests of the buying party, as a guarantee that the ordered products adhere to the order before the bank releases the funds from the selling company.
For many companies, a pre-shipment inspection is part of their quality control process. Having someone check the invoice or slip with the items in the box helps ensure that customers are satisfied when they receive their order. If companies take the extra step to ensure the quality of their orders, it typically reduces the number of returns and increases repeat orders from the same customers.
A pre-shipment inspection also protects the company against damage claims if the products are damaged in transit. If the carrier verifies that the products in the order are not broken or damaged before leaving the warehouse, it will be the carrier’s responsibility if something happens to the products inside the box or if the shipment is lost altogether.
Some companies use pre-shipment inspections as a form of quality management or control or as a learning experience. For example, if the person or persons responsible for performing pre-shipment inspections notice that the same errors keep occurring, steps can be taken to increase the quality of shipments and reduce the time an inspector must return the package or shipment. to the service area to be corrected.
Another thing pre-shipment inspections can check is that the package is properly packaged. This includes ensuring that the products are laid out to reduce the chance of damage and that there is cushioning in the packaging to protect the products from damage or being jostled during transit.
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