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
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Each
functional area, receiving through shipping plus inventory control
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Facility
capacity and throughput (current and optimum)
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Operational
layout and material flow
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Systems
functional capabilities and performance
-
Productivity
and benchmark comparisons from Distribution Design's database of comparable operations
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Storage and
handling equipment
-
Inventory
accuracy
-
Customer
service performance metrics
-
Safety,
security, and housekeeping
