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Operational Audit
An Operational Audit answers the questions, "How are we doing?" and "What should we be doing better?"
An Operational Audit provides an independent view of your logistics operation and a thorough report of Issues and Observations from an experienced operations and systems consultant. Usually, an audit reviews every facet of an operation and recommends action items to address each of the identified issues. It also benchmarks your operation with other similar distribution centers.
A complete Audit Report is prepared by Distribution Design. It defines the issues that are limiting the operation's effectiveness. It describes the operational impacts of the issues, and it prioritizes the issues based on the most severe operational impact. The Audit Report also offers recommendations. This is not "cookie-cutter" with most of the contents "boiler plate" from some other operation. It is 100% specific to your operation.
While a few of the recommendations will require additional data and analysis before implementation, many of the recommendations can be implemented in the short term. You'll be surprised what can be done in a relatively short period of time! Distribution Design has saved some clients hundreds of thousands of dollars in operating expenses and millions in cost avoidance with an Audit. In a recent audit, the operational improvements defined by Distribution Design will save the client over $1.5 million in the first year. The Return on Investment for the fees paid to Distribution Design were over 10,000%.
Operational Audit Areas of Review
Each functional area, receiving through shipping plus inventory control
Facility capacity and throughput (current and optimum)
Operational layout and material flow
Systems functional capabilities and performance
Productivity and benchmark comparisons from Distribution Design's database of comparable operations
Storage and handling equipment
Inventory accuracy
Customer service performance metrics
Safety, security, and housekeeping
Recommendations are provided for all areas needing improvement!