An effective logistical control system requires, among other things, a periodic, accurate and relevant survey of information on the performance of the activities carried out.
A great source of information is logistical assessments, also called logistical audits. A periodic assessment of the logistics system should be part of any organization’s logistics strategy.
The logistics audit is a useful tool, as it allows:
1) identify key data necessary for an effective management of costs, customer service, reliability, cycle time and quality of services developed within the logistics functions. The audit not only raises the data, it provides a database over time for an ongoing assessment of logistics performance.
2) detail and better understand the environment, which is an essential first step in the logistics strategy development process.
3) audit the logistical functions to verify that the logistical system is reaching the market requirements, at a competitive cost, with flexibility and, within an adequate time. This helps the company to determine how well the logistics system is adapted to market changes.
According to Ballou (2001), the logistics audit is a periodic examination of the situation of logistics activities. A control system can lose its effectiveness if the information available is inaccurate. Audit information is used to establish new benchmarks against which reports are generated and to correct errors that may result from the performance of certain logistical activities due to bad information.
Logistic audits are an important management tool and should be incorporated into the annual planning process. It is an integral part of the development of the logistics strategy and is part of the management activities, offering a wide and critical view that allows the identification of the company’s vulnerable points in the market, the insufficient performance levels, the critical issues for customers and any relevant failure in the processes.
Excellent companies conduct logistical audits on a regular basis at least once a year and sometimes more frequently to ensure better monitoring and a greater capacity for rapid response to changes in the market
Our Trainings take place in several cities in Brazil, it broadly and objectively addresses the issues exposed here in order to reaffirm the importance of Internal Audit as an integral part of the global control system and with specific objectives: to verify how activities related to the internal logistics in the organization; analyze the activities of the company’s internal logistics and operations; investigate how Material Requirements Planning (MRP) occurs, as well as the scheduling of operations, stocks and supplies in the productive sector; survey the procedures for receiving and handling materials adopted by the company.