Pre-Shipment inspection is a part of supply chain management and an important quality control method for checking the quality of goods clients buy from suppliers.
PSI ensures that production and delivery complies with the agreed standards and specifications between buyer and supplier
Pre-shipment acceptance sampling, involving inspection, and acceptance testing, may be agreed upon between a buyer, a supplier, and a bank, and it can be used to initiate payment under a letter of credit. A PSI can be performed at different stages before shipment, such as checking the total amount of goods and packing, controlling the quality or consistency of goods, checking of all documentation, as for example test reports, packaging list, or verification of compliance with standards of the destination country.