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An analysis of the company logistics system carried out by independent experts is very useful for business.
This is a logistics audit that has become quite common in recent years and even decades.
The concept of logistics began its development in the middle of the last century when the business began its active growth due to the improving infrastructure and globalization processes.
Nowadays, it is impossible to guarantee the normal development of the entire company without conducting independent auditing by high-level experts.
What is a logistics audit, its features
As a rule, it is conducted by experts with appropriate Higher Education and major practice. Experts check purchasing, the warehouse state, the transportation system. In addition, logistic auditing means the following:
Resolution of specific problems/tasks of a company. These may be general problems: for example, those affecting specifically the goods transportation. Or there may be local issues negatively affecting the whole business development.
The overall company state assessment, including supplies, vehicles, total logistics. We may call it “a diagnosis of the entire organization functioning”
Control function. Company owners do not get in touch only with logistic auditors to identify a specific problem or to find the reason for increasing spendings. Very often logisticians hear phrases like: “Our functioning is perfect but I want to make sure with your perspective of view that we are doing everything right”
And it’s a logistic audit that lets you answer all questions. There will be described the current company status and identified vulnerabilities. Besides, there will be chosen measures for eliminating the shortcomings, outlined strategies, defined priorities.
Having conducted a logistics audit the company owner gains specific recommendations, strategies, tactics, action plans to be integrated. There are the specificities of each particular business.
Who is a logistics audit created for?
In short, it is created for “fresh” company owners as well as for experienced ones. Answering the question about who is a logistics audit created for it’s worth using the table below.
Of course, it is important to follow all cooperation phases. It is also important to follow expert advice after conducting research. Speaking about companies requiring a logistic audit it is worth noting both national companies and cooperative ventures of various ownership kinds.
It is worthwhile to initially approach the business responsibly and plan advice and changes integration that will be reached by company owners, after all, carried checks. Most people are already aware of companies requiring a logistic audit because they realize that it is required by everyone whose functioning is connected with managing a company and not only. Sometimes government departments and public non-profits apply for help.
Which are purposes of logistics audit
The purpose of such manipulations is to reduce costs and increase income. This also includes business development and international expansion. Besides, the purposes of a logistics audit may be formulated in the following way:
The opportunity to practically integrate projects that will significantly improve business results. Everything is based on recommendations by experts
Such collaboration will help you develop an appropriate strategy for transportation, purchasing, storing in warehouses, etc.
In addition, the purpose may be called automation (excluding mechanical methods of monitoring and transferring information). This will also neglect the so-called “human factor” when mistakes may be inevitable. It’s the automation after conducting checks that will become significant assistance in further development.
Among the purposes of a logistics audit, it is worth mentioning the improvement of the company’s structure, the interaction between departments and even individual employees. As a rule, experts insist on teaching staff specific skills, thinking over interaction processes, developing precise guidance. Sometimes it is advisable to eliminate some of the employees which will not affect an organization’s functioning. Sometimes, it may be conversely recommended to expand the staff and to complete it with experts.
Logistics audit phases
Functioning is subject to strict rules, working algorithms, phases. All logistics audit phases are obligatory but some adjustment is possible depending on the company functioning specifics. It all begins with preparation (obtaining general information about the company’s functioning). This will make you more objectively assess what is happening. This is also divided into sub-phases that are: collecting information about regional divisions, technological specificities of functioning and it’s also necessary to gain information of the staff quantity, their qualifications, automation, etc.
In addition, the phases of conducting a logistics audit are the following:
Planning means creating a general plan and a working program
The audit itself. This is the largest phase. It is important to be guided by regulatory papers. There is a signed agreement on non-disclosure of the company’s commercial secrets and the negotiated working terms. This is a rather difficult process that depends on the company functioning specificities, on the amount of gained information, on the role of regional divisions, other factors.
Audit results. It will provide reporting in graphs, text material, diagrams, drawings, photos as well as recommendations and a plan of further development.
As you can see, there is nothing superfluous among the logistics audit phases. And although it may seem difficult since each phase is subdivided into sub-phases, experienced experts know how to work quickly and accurately.
Logistics audit results
Perhaps someone will call this the most important phase. There are the logistics audit results in different forms including graphs and schemes. The following table will help you to make the content clear:
It is the logistics audit results that allow you to create a holistic picture of what is happening. There are checked accounting and financial records, the nuances of providing information to the general database, the specificities of processing the gained information. As a result, it is often possible not only to optimize spendings but also to avoid penalties by the appropriate authorities.
In most cases, a company reaches a new level of development and stabilizes its functioning as a result of a logistic audit. For this reason, you just need to use the auditor’s recommendations and carefully study the experts’ opinions.
Ordering a logistics audit by Kyiv Logistics School is quick and easy
If necessary, this service may be ordered all the time. If you intend to order a logistics audit by Kyiv Logistics School then you need to provide them with preliminary information and formulated questions and wishes. You can sign up for a preliminary consultation, where you will find out the price, terms, other important nuances for agreement.
Many people prefer ordering a logistics audit by Kyiv Logistics School not due to advertising but because of their established reputation. On the website, you can get acquainted with the nuances of cooperation, learn more about the working methods, stages, guarantees. It is possible to audit both the entire company and its divisions and logistics links.
Ordering a logistics audit by Kyiv Logistics School you may be sure of their accordance with international standards of cooperation. Logisticians are well acquainted with law enforcement practice and with national and international legalities regulating such functioning. It is not the first year of providing services. The work is conducted based on an official contract. In particular, the following conditions are stipulated:
Guarantees and liability for improper performance of obligations
There has been established cooperation with representatives of large, medium, small businesses and also guaranteed an individual business strategy. There are available general and functional audits, logistics audits, inventory or shipping documentation audits, planning, other audits. Effective conceptual strategies are being developed to significantly improve the company’s functioning. Moreover, this will be done not only in reports (on paper) but also in reality. Also, such an approach will make it possible to correctly prepare reports for supervisory and regulatory authorities which minimizes the risks of imposing a fine.
How to choose the right company for a logistics audit
This is one of the most common questions customers are concerned about. Someone is guided by their own experience or by their friend’s advice. Practice shows that in most cases, potential customers prefer not to focus on advertising but appreciate real customers’ reviews. As a rule, such reviews are found on independent resources. Yes, it should be considered that the competition in this market segment is great, so today the top leaders are not those companies that have been providing such services for far from the first year. It is not necessary to make a decision right away. You can first call, request additional information or order a call back at a suitable time.
It is possible to create individual concepts, as well as to conduct a logistics audit in the “express” format. This means experts calculate the efficiency potential, collect and analyze
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