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Supply Chain Audit Checklist
Section 1: Supply Chain Strategy
1. 1. Does your company have a documented supply chain strategy?
Yes
No
N/A
2. 2. Does your supply chain strategy clearly support the overall business strategy?
Yes
No
N/A
3. 3. Is your supply chain strategy supported by clear and understandable functional, team, and individual performance objectives?
Yes
No
N/A
4. 4. Do you have a set of key performance indicators (KPIs) to measure performance against strategic supply chain objectives?
Yes
No
N/A
5. 5. Are your supply chain KPIs aligned across all functions touched by the supply chain?
Yes
No
N/A
6. 6. Are employees' incentives and compensation linked to your strategic supply chain objectives?
Yes
No
N/A
Section 2: Customer Service
1. 1. Does your supply chain strategy include objectives for customer service improvement?
Yes
No
N/A
2. 2. Does your company use customer-focused KPIs such as "Perfect Order" or DIFOT?
Yes
No
N/A
3. 3. Is each customer-focused KPI cascaded down to each supply chain function and tailored to measure functional customer service performance?
Yes
No
N/A
4. 4. Are supply chain employees trained to understand the concept of internal and external customers?
Yes
No
N/A
5. 5. Do employees in all supply chain functions receive customer service-related training?
Yes
No
N/A
6. 6. Does your company regularly gather feedback from customers to assess their current and future needs?
Yes
No
N/A
7. 7. Does your company seek feedback from customers who stop placing orders or defect to other suppliers?
Yes
No
N/A
Section 3: The Supply Chain Network
1. 1. Has your company ever performed a review of its distribution network design with a view to optimization?
Yes
No
N/A
2. 2. Has a distribution network design optimization project ever been completed?
Yes
No
N/A
3. 3. Has a network design review taken place within the last 5 years?
Yes
No
N/A
4. 4. If your supply chain has been impacted by a merger or acquisition, has a distribution network review since been conducted?
Yes
No
N/A
5. 5. Are your company's customers satisfied with product availability and service lead times?
Yes
No
N/A
Section 4: Inbound Logistics Process
1. 1. Are items checked for quality, quantity, and condition upon arrival of each inbound shipment?
Yes
No
N/A
2. 2. Do you have a booking-in process for suppliers, with a time slot allocated to each inbound delivery?
Yes
No
N/A
3. 3. Does your company insist on the use of advanced shipping notifications by all suppliers (as far as practicable)?
Yes
No
N/A
Section 5: Inventory Management
1. 1. Has your company implemented a cycle-counting program in all its DCs/warehouses?
Yes
No
N/A
2. 2. Is all inventory included during counts, even those items set aside for repackaging or other reasons?
Yes
No
N/A
3. 3. When counting, is every discrepancy between "counted stock" and "stock on record" double-checked and investigated?
Yes
No
N/A
4. 4. Is your inventory categorized and segmented by the ABC inventory system or similar?
Yes
No
N/A
5. 5. Does your company actively collaborate with customers and suppliers to develop inventory strategies?
Yes
No
N/A
6. 6. When stock becomes obsolete or is discontinued, does your company move quickly to write it down or sell it off at a discount?
Yes
No
N/A
7. 7. Has your company implemented a Sales and Operations Planning (S&OP) process?
Yes
No
N/A
Section 6: Warehouse Layout
1. 1. Has your company modeled and optimized the layout of its warehouse space/s?
Yes
No
N/A
2. 2. Are warehouse layouts reviewed on a regular basis?
Yes
No
N/A
3. 3. Are your fastest-moving SKUs stored close to the shipping areas/loading doors in your warehouses?
Yes
No
N/A
4. 4. Are warehouse spaces clearly segregated into areas for receiving, storage, picking, dispatch, and where applicable, cross-docking?
Yes
No
N/A
Section 7: General Warehouse Management
1. 1. Do your warehouse operations include a structured system for pick-face replenishment?
Yes
No
N/A
2. 2. Is warehouse health and safety managed using a proactive system (near-miss and hazard reporting)?
Yes
No
N/A
3. 3. Do warehouse managers practice a fully documented handover during shift changes?
Yes
No
N/A
4. 4. Is a rigorous housekeeping policy and process in place in each warehouse?
Yes
No
N/A
5. 5. Has your company implemented a warehouse management system (WMS) in each of its warehouses?
Yes
No
N/A
6. 6. Do warehouse management systems include hands-free transaction recording (bar-code scanning or RFID)?
Yes
No
N/A
7. 7. Has your company eliminated paper-based warehouse processes?
Yes
No
N/A
8. 8. Does your warehouse management team operate a continuous improvement program (Lean, Six Sigma, PDCA, or similar)?
Yes
No
N/A
9. 9. Are your warehouses managed in a way that directly supports your company's supply chain strategy?
Yes
No
N/A
Section 8: Warehouse Material Handling Equipment (MHE)
1. 1. Is MHE utilized to the maximum?
Yes
No
N/A
2. 2. Is MHE adequate for a balanced operation?
Yes
No
N/A
3. 3. Do you have MHE of the right types and sizes for each activity and environment within your company's warehouses?
Yes
No
N/A
4. 4. Is all MHE maintained according to manufacturers' recommended programs, including preventative maintenance schedules?
Yes
No
N/A
5. 5. Does your company enforce a strict policy regarding the authorized use of MHE by qualified operatives?
Yes
No
N/A
Section 9: Transportation/Distribution
1. 1. Has your company's decisions regarding insourcing/outsourcing of (road) transportation been based on a balancing of the costs and benefits?
Yes
No
N/A
2. 2. If insourced: is your fleet effectively utilized?
Yes
No
N/A
3. 3. If insourced: does your company have people appointed to ensure all applicable legislation is adhered to regarding vehicle roadworthiness, driver hours, and other operational responsibilities?
Yes
No
N/A
4. 4. If insourced: does your company have vehicles of the right type and capacity for the transportation activities performed?
Yes
No
N/A
5. 4. If insourced: does your company have vehicles of the right type and capacity for the transportation activities performed?
Yes
No
N/A
6. 6. If outsourced: do you monitor and measure the performance of 3PL partners using agreed KPIs?
Yes
No
N/A
7. 7. If outsourced: do you have a dedicated person (or team) employed with responsibility for managing the outsourcing relationship?
Yes
No
N/A
8. 8. If outsourced: do you and your outsourcing partners have a clear and aligned understanding of how risks and liabilities are apportioned?
Yes
No
N/A
9. 9. Is your transport/distribution operation managed in a way that directly supports your company's supply chain strategy?
Yes
No
N/A
Section 10: Supplier Performance/Relationship Management
1. 1. Has your company implemented a supplier performance management program?
Yes
No
N/A
2. 2. Are supplier performance KPIs used as part of supplier performance management?
Yes
No
N/A
3. 3. Are supplier performance KPIs focused on value for your end-customers?
Yes
No
N/A
4. 4. Does your company capture the reasons behind suppliers' missed KPI targets?
Yes
No
N/A
5. 5. Does your company use the performance management process to drive forward-looking, added-value opportunities?
Yes
No
N/A
6. 6. Does the process include regular face-to-face meetings between suppliers and key stakeholders from your company?
Yes
No
N/A
7. 7. When there is a need for performance improvement, is there a clear action plan identified, with specific dates for delivery?
Yes
No
N/A
8. 8. Are action plans followed up regularly until objectives have been achieved?
Yes
No
N/A
9. 9. Are suppliers chosen on the basis of the value offered, rather than the lowest price?
Yes
No
N/A
Section 11: Supply Chain Performance
1. 1. Has your company benchmarked supply chain performance against other supply chains with similar characteristics?
Yes
No
N/A
2. 2. Does every supply chain-related function manage employee performance according to an objective structure of measurement?
Yes
No
N/A
3. 3. Is employee performance measurement aligned with functional goals that support the supply chain strategy?
Yes
No
N/A
4. 4. Are your company's supply chain KPIs straightforward and easy to understand for employees at all levels?
Yes
No
N/A
5. 5. Is the range of KPIs balanced across a range of criteria, including financial, operational, and customer service?
Yes
No
N/A
6. 6. Do your company's functional managers brief their teams face-to-face on a daily basis, informing employees of key performance achievements and issues, and capturing qualitative feedback?
Yes
No
N/A