Logistics is at the very heart of business performance. It is one of the challenges to be met in order to adapt to customer expectations and to position itself well in the face of increasingly tough competition. It is therefore essential to optimize the supply chain. To do this, the company has every interest in carrying out an audit of the supply chain. What is it about? How do I do a logistics audit? This guide answers all of your questions.
A logistics audit is a study that consists in analyzing the logistics performance of a company. This diagnosis focuses on the various stages of the supply chain, namely:
Carried out by an internal auditor or a specialized firm, the audit aims to detect failures within the supply chain. It then makes it possible to find solutions relevant to correct these dysfunctions and optimizing the performance.
Auditing logistics requires studying various important elements. Among others, these include:
Not exhaustive, these elements vary according to various factors: the company's sector of activity, its strategy as well as that of its customers and suppliers, the number of warehouses, etc.
As mentioned earlier, the logistics audit aims to identify weak points that make the supply chain fragile. This analysis allows the company to identify areas of productivity and to make improvements by restructuring the supply chain. Conducting a logistics audit provides undeniable advantages to the company, including:
In business, the logistics audit takes place in three main stages:
Namely, an audit of the supply chain involves comparing an existing situation with a reference framework. This confrontation is the keystone of the analysis. Indeed, the differences between the reference frame and the actual one make it possible to measure the performance of the process and to improve it.The reference frame can be established internally within the company. But it is also possible to consider competitors as a reference point of reference. In this case, the company's performance will be compared with those of the players who share the same market with it. Professional associations also offer standards that make it possible to evaluate the company's logistics process in a relevant way. Using a common language, they guarantee a certain objectivity, which is essential for the success of the audit.
The audit of the logistics process is based on various performance indicators (KPIs). There are various types. These indicators can relate to various areas of work that make up logistics:
The choice of KPIs must correspond to the strategic goals of the company. Likewise, they should be selected based on the reference frame. The relevance of these elements is essential to ensure the effectiveness of the analysis. In addition, it is strongly recommended to take into consideration the opinions of field teams when choosing KPIs. For employees to use them appropriately, these indicators need to be easy to understand.
Doing a logistics audit allows you to obtain valuable information, which is essential for the implementation of an effective action plan. The results of the analysis highlight the processes and working methods that need to be improved in order to achieve greater productivity. However, for this approach to take place in good conditions, it is necessary to share them with the teams in the field. Employees need to understand the importance of conducting a logistics audit. Therefore, it will be necessary to explain to them the benefits that they can benefit from process optimization, in particular the gain in time and productivity. They will thus be more favourable to the change that will result from the audit.In addition, this analysis is an opportunity to put in place new methods that allow logistics to be managed in a more organized way. Among other things, this involves:
Then, at the end of the examination, the company will be required to establish procedure guides and best practices to streamline the supply chain. Unified and well-coordinated, it will become more effective. Finally, it is advisable to digitize logistics using dedicated software. These tools make it possible to automate time-consuming and repetitive tasks. In this way, employees can focus on missions with higher added value.
Logistics audit and diagnosis aim to optimize logistics management. However, the two processes differ in a few ways. On the one hand, logistical diagnosis has a operational vocation. It consists of carrying out an inventory of processes by analyzing each part of the supply chain. This makes it possible to highlight weaknesses in the supply chain. In other words, the logistical diagnosis is used to detect symptoms of dysfunction in the supply chain in order to define an action plan to improve its performance.On the other hand, the logistics audit seeks to verify the compliance of the company's logistics with the standards in force. These standards are established by external entities whose compliance makes it possible to obtain certification. For example, these are the conditions imposed by AFNOR to receive a ISO certification. While there is a slight difference between audit and logistical diagnosis, both are Complementary. This, in the sense that the diagnosis helps to understand the reasons why the standards are not being met. A logistics audit therefore serves to highlight the central points of the company that can be optimized. Among these key elements, delivery is proving to be a powerful lever. However, organizing this part of the logistics can seem tricky. Indeed, unforeseen events are numerous and can damage the entire established organization. To help you counter these unexpected events, flexibility is key. Interested in knowing how to get it? Learn how Shippr technology meets your needs in getting in touch with one of our business experts.
