What is a Logistics Audit Checklist?
A logistics audit checklist is a document that lists the things, actions, or procedures that a company must regularly evaluate for an effective and efficient logistics operation. It helps auditors maintain a record of the necessary data and have a comprehensive overview of the processes to easily identify areas for improvement. Logistics audit checklists are typically customizable to meet a business’s specific needs.
Importance of Logistics Audits
The main purpose of logistics audits in organizations is to assess the organization’s operational efficiency. Logistics audits are great opportunities for organizations to spot and correct weak points in the supply chain such as the following:
- Order of operations
- Bottlenecks in processes
- Issues in item receiving and dispatching
They empower everyone in the organization because they provide knowledge and insight into the organization’s performance. By analyzing the information collected from these audits, members gain a better understanding of how a team or a department is contributing to or hindering the organization’s success.
Logistics audits also ensure all proper processes are being followed. As each organization has different logistics practices to work with based on their budget, capabilities, and goals, conducting regular logistics audits can help you better inspect if your organization is working sustainably and realistically with what you have, thus driving in more profit and productivity. Subsequently, logistics audits also help ensure quality is maintained and achieved in all processes and products.
What is a Transport Audit?
Logistics audits are used for many business processes, but they are often associated with the transportation of goods and the transportation industry as a whole. This is because the transport industry has multiple logistical needs to consider for a successful trip, delivery, and the like.
While a transport audit can be part of a logistics audit, a transport audit focuses more on the individual vehicles within a fleet. A logistics audit is aimed at the organization’s overall management of goods, while a transport audit is aimed specifically at the organization’s fleet management. As such, a transport audit is primarily focused on vehicle inspections. A transport audit helps in:
- capturing vehicle defects and damage before service;
- early detection of issues to reduce repair costs; and
- ensuring deliveries are quick and accident-free
Transport audits help build a roadworthy and efficient fleet by encouraging drivers to take responsibility for their vehicles. Conducting transport audits frequently trains drivers to immediately identify issues and take steps to resolve them. Transport audits also help fleet managers enforce compliance with safety standards and improve operational efficiency by uncovering common weaknesses.
Scope of Transport and Logistics Audits
Following the description of a transport audit and a logistics audit, a transport and logistics audit is an in-depth evaluation of a company’s transportation, warehousing, and supply chain operations. It encompasses a thorough assessment of every facet of these operations, from the moment goods leave a supplier’s facility to the point they reach the hands of the customer. The primary aim of such an audit is to identify areas where improvement is necessary, where costs can be reduced, and where performance can be enhanced.
The scope of a transport and logistics audit depends on the supply chain’s structure and complexity. While it may differ for each organization, it will most likely include a fleet inspection and a warehouse inspection. Since mobility is a key component of a logistics business, fleet inspections are critical to reducing vehicle downtime. Warehouse inspections are also important because improper storage can result in damaged goods.
However, a transport and logistics audit can be conducted together, depending on your organization’s needs and processes. For this, considering having a dedicated checklist for your transport and logistics needs.
What to Include in a Transport and Logistics Audit Checklists
A typical transport and logistics checklist would ideally have fields for the following:
- Vehicle information such as:
- Vehicle type
- License plate number
- Model
- Current mileage before or after use
- Presence and status of insurance for both personnel and vehicle
- Status of the following:
- Vehicle breaks
- Steering systems
- Windshields and wipers
- Fuel systems
- Lighting devices
- Exhaust systems
- Suspension
- Tires
- Cargo to be transported
- Procedures to follow for transportation of goods
- Logistical procedures during the trip that can cause risk, if any
- Recommendations
- Sign-off
Here is a sample transport and logistics checklist in use for reference:
FAQs about Transport and Logistics Checklists
The most common vehicles used in transportation and logistics are trucks, ships, trains, and planes. Thus, these vehicles are the most commonly audited and inspected. However, other modes of transportation are also audited and considered in logistic planning, depending on the organization.
Typically, there is a dedicated logistics manager who will be responsible for all logistics activities, sometimes including transport concerns. In other cases, transport and logistics checklists can be managed by operations managers and transportation planners and managers.
Some ways you can effectively perform audits on your transport and logistics include the following:
- Empowering all workers on-site to report issues by providing them the necessary forms and checklists
- Centralizing all documents in one place for easy access
- Training workers on proper auditing procedures
All these can be done with a digital solution, particularly with one that has mobile capabilities and real-time syncing.
Jona Tarlengco