Supply Chain Health Audit

 

 

The state of your inventory is critical to so many areas of your business that taking a look across your procurement & warehouse can help you to identify the root-cause of poor general business performance measures like cash flow and productivity. 

 

So, how do you start to assess the health of your inventory and optimise supply chain management processes? 

 

An audit is the first critical step to identifying inefficiencies, and opportunities for improvement in your supply chain. An audit is recommended as a part of any continuous improvement process, or when any of the following scenarios are true: 

  • You need to move the needle quickly to realise savings and defer procurement spend
  • Feedback from customers is not overly positive and you’re unsure where the issues lie
  • General operation of procurement systems are not user friendly
  • Inventory performance is unknown and cash is locked up without explanation 
  • Improvement requires investment and the investment must pay itself back quickly 

 

It’s important to note that inventory management issues aren’t problems in isolation, but hint at a bunch of bigger business problems. Amongst other issues, a sluggish supply chain can negatively impact your responsiveness to market opportunity, to asset maintenance needs and contribute to excessive costs for you and your customers.

 

What does a good audit process look like?

 

 

You’ll need someone experienced in supply chain optimisation. This will directly impact the quality of your review. An experienced consultant will succinctly identify the root cause of issues and maintain a holistic view of your supply chain functions, business needs and best practice.

The task is most effective if delegated to someone that is external to the business; impartiality and experience results in greater accuracy and avoids an unhealthy ‘blame game’ or political factors from interrupting the quality and efficiency of your audit. An external supply chain expert is most likely to have experience with different inventory management software products that can assist in improving supply chain performance.

The audit process is usually conducted onsite and focuses on providing a rigorous review of:

 

  • Supply chain functions
  • Business objectives
  • Asset Management/Maintenance collaboration
  • Organisational structure
  • People, process, tools
  • And more, depending upon your business

What do you get from an audit?

 

A good quality audit will provide you with actionable recommendations, road-mapped so that priorities are addressed in a pragmatic path of maturity to improve efficiencies, and to address corporate objectives in a process of continuous improvement.

These recommendations may involve projects such as: 

 

  • Facilities improvements are required to effectively protect your investment and make sure it’s staged ready for when it’s required
  • Process & policies that are designed to provide concise direction to employees and produce delivery and financial excellence
  • Data management: master data cleansing, cataloging, and the implementation of data governance systems like Prospecta’s MDO
  • Integration of manufacturing, asset maintenance and equipment strategies with inventory management processes  
  • Monitoring and Forecasting Demand: to build a responsive supply chain via statistical trending and analytics such as Vueterra Analytics or Xtivity packages

Next steps…

 

Vueterra’s Supply Chain Health audit process typically takes between 1 and 2 weeks and is best completed at the operation. Our experience in supply chain optimisation and its intersections with manufacturing and maintenance have delivered, on average, an improvement of 33% reduction in inventory and improvements in customer fulfillment by 91%. 

 

For more information on Vueterra’s Audit Process, our Master Data and analytics packages, check out our website, or give us a call. We’re also offering a 30 min phone consult on your inventory data and process issues to help you get in control of your supply chain. email: [email protected] or call us on 0400 955 532