Warehouse Operational Audit / Operational Assessment

inventory-&-productivity-chart: Operational Audit / Operational Assessment

A Warehouse Operational Audit / Assessment answers the questions, “How are we doing?” and “What should we be doing better?”

A Warehouse Operational Audit / Assessment 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.

A complete Assessment 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.

It is also important to understand what an Operational Audit from Distribution Design is NOT. It is not a “cookie-cutter” approach with some pre-determined checklist prepared by someone who has never seen your operation. It is not a low cost approach to identify the problems and then sell you a project for developing the recommendations. It is not a “loss leader” training exercise for junior consultants. The comprehensive Operational Audit Report is not “consultant boiler plate” tailored to fit your operation and everybody elses. An Operational Audit from Distribution Design is thorough, analytical as well as observational, process-oriented, and complete with recommendations. 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 assessment, 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%.

Warehouse Operational Audit Areas of Review and Deliverables

  • A complete set of data analyses to establish the basis for measuring continuous improvement. This includes velocity profiles, order profile, inventory profile, productivity profile, and other operating ratios.
  • Each functional area, receiving through shipping plus inventory control
  • Facility capacity and throughput (current and optimum)
  • Operational layout and material flow
  • Space utilization
  • Systems functional capabilities and performance
  • Productivity analyses
  • Storage and handling equipment
  • Inventory accuracy
  • Customer service performance metrics
  • Safety, security, and housekeeping
  • Identification and prioritization of opportunities for improvement
  • Development of recommendations for improvement
  • Comprehensive report