Answer:
A freight logistics audit will generally cover both inbound and outbound transportation as well as other logistics related activities such as stock management, warehousing or trade compliance.
A Logistics audit will invariably start with gathering quantitative and qualitative data from key stakeholders and with analyzing and interpreting this information. The main departments collaborating in data collection and interviews will typically be Logistics and Transportation as well as Warehousing, Purchasing, Production, Trade Compliance, Customer service and IT departments. All these departments are involved directly or indirectly in the supply chain and can provide a valuable insight on the situation as well as benefit from the outcomes of the audit.
Typical findings will generally relate to the (without being limited to) logistics sourcing strategy, customs compliance performance, HTS management, freight optimization and consolidation, order and stock management, ERP and logistics systems interaction, process streamlining and unification, premium transportation limitation and regulation, logistics provider portfolio strategy and contract management.
The ultimate purpose of the logistics audit is to objectively evaluate the entire process in order to identify any inefficiencies, bottlenecks, and waste(1). provide suggestions for improvements and modifications summarized on "to-be" maps and adequately prioritized. Specific recommendations, action items and risk assessments will accompany these suggestions and solutions to help with their implementation.
In a nutshell, a freight logistics audit will identify good working practices and improvement or optimization opportunities inside the logistics chain of an organization through an objective assessment and data benchmarking and moreover, will map a road leading both to qualitative service improvement and logistics savings and cost avoidance.
To find out how a logistics audit can help your organization, please contact Michael Tomkins -- tomkins.m@allynintl.com or sales@allynintl.com We will revert to you with further information and to discuss a high level free snapshot.
(1) (Referring to Six sigma waste elimination idea) The elimination of waste may include the exclusion of process steps which do not bring any added value while increasing the overall time spent in that logistics procedure hence lowering logistics personnel's productivity and the profitability of the organization.