What is a logistics audit?

In the field of logistics, there is a very important step that aims to analyze and improve the various processes of the supply chain. This step corresponds to the logistics audit.

DEFINITION OF A LOGISTICS AUDIT OR CONCEPT OF LOGISTICS AUDIT

A logistics audit is a study aimed at measuring the logistics performance of a company. It is carried out by an auditor working most of the time in a specialized firm. It is a diagnosis that identifies any errors within the supply chain. To carry out an audit, it is essential to respect certain characteristics that can be adjusted to the company and its activity :

• Have a repository on which it is possible to rely to compare and identify any differences. It is a tool that guarantees real objectivity.
• Choose relevant performance indicators relating to the strategic objectives of the company.
• In connection with its indicators, it is necessary to define the essential information to be collected to effectively analyze the activity as well as the mode of collection of this information. And finally, it is necessary to determine the periodicity of this collection.

This audit will not only identify errors and malfunctions. On the one hand, it will effectively examine the stages of the supply chain and identify the weak points. On the other hand, it will make it possible to move towards various relevant solutions and recommendations in order to correct these failures and improve performance.

THE CONTENT OF A LOGISTICS AUDIT

During an audit, there are several things to consider :

• All the registers of the various departments of the company, whether at the level of orders, rules with regard to the optimization of locations within the warehouse, but also all the documents essential to the proper functioning of activity, etc.
• Warehouse planning and layout
• Everything that relates to staff and their productivity. In other words, it is necessary to detail the organization of the teams of each service, the position assigned to each employee, etc.
• Details of warehouse operations in terms of efficiency, synchronization, productivity, optimization based on all KPIs (= Key Performance Indicators).
• The adequacy between the means, the objectives and the logistical cost.

These elements are not exhaustive, they vary according to the sector, the customers, the suppliers and the business strategy. To successfully complete the audit and obtain authentic content, several steps must be followed.

PROCEDURE OF A LOGISTICS AUDIT WITHIN C-LOG

Like the vast majority of companies, a logistics audit at C-LOG consists of several major steps :

• The analysis of the current state of the activity a collection of data concerning the organization of logistics on all its facets but also a collection of all the information relating to its performance.
• Analysis of collected data: After collecting the necessary data, the auditor analyzes it to measure the performance of the entire process.
• Highlighting recommendations: in this third step, the auditor will develop a report that will bring together several solutions to increase the efficiency of logistics processes.
• The projection of an action plan in relation to a forecast activity in the short, medium and long term to ensure the sustainability of the improvements.

Thus, a logistics audit gives rise to an in-depth analysis of all the phases making up the supply chain. This major step in a company has many advantages since it makes it possible to optimize its resources and to improve certain faulty axes for the proper functioning of the activity or even the logistics costs.