What is a Supply Chain Audit?
A supply chain audit is the management and analysis of a set of supply chain guidelines. These guidelines are different from organization to organization, but are generally based on safety demands, legal requirements, efficiency standards, and other factors. Most supply chain guidelines also focus on sustainability.
An effective supply chain audit should identify weak links and determine how best to strengthen them — increasing operational efficiencies, improving sustainability efforts, and increasing ROI.
Benefits of a Supply Chain Audit
A supply chain audit provides many benefits for an organization. It allows an organization to get a bird’s eye view of their supply chain, and can help a company to:
- Identify weak links in the supply chain
- Improve supplier accountability
- Decrease the gap between supply and demand
- Catch fraudulent activities
- Ensure correct documentation procedures
- Minimize fulfillment mistakes
- Maintain quality control
- Strengthen safety standards
- Improve capacity issues
Each one of these benefits represents a link in the chain that could make or break an effective logistics process. Each one also represents big opportunities to improve the entire process and potentially increase the ROI of the entire system.