Logistics audit and Control

Logistics Audit

The logistics audit is framed by the answers to the following questions

1. Are current logistics strategic objectives consistent with current corporate marketing and production strategies?
2. How is the company performing with respect to customer requirements and preferences?
3. What is the true total cost of the logistics function and how do those costs compare with others in the same industry or market segment?
4. Is the company using its logistics resources and capacity effectively?
5. Is the company managing its material flow effectively through the supply chain?
6. Are the information systems and technologies meeting the needs of the users, the business and the customers?

Process

1. Consistency of logistics strategic objectives
2. Determine customer requirements and preferences and obtain performance targets
3. Detail current logistics operations and practices
4. Analysis of logistics data
5. Identify and prioritize projects and initiatives
6. Prioritizing projects
7. Develop an Implementation plan
8. Implement and Audit
9. Monitor and corrective action

Logistics Control

The control activity intense to reduce performance alteration in a planned process. That is reducing the gap between the planned and actual performance. The control process is a function which monitors changes in the internal operations and external conditions and provides useful pointers for effective organizational management in future. Therefore logistics control aims at monitoring planning activities so as to decrease variance between benchmark and actual output. There are three types of logistics control systems;

1. Open loop
2. Closed loop
3. Modified loop