Supply Chain Audit Checklist

Use the Supply Chain Audit Checklist to evaluate and improve your supply chain processes, including supplier performance, inventory management, etc.

Download as free PDF

Library
Logistics & Supply Chain
Supply Chain Audit Checklist

Supplier Performance/Relationship Management

Supply Chain Performance

Supply Chain Strategy

Customer Service

The Supply Chain Network

Inbound Logistics Process

Inventory Management

Warehouse Layout

General Warehouse Management

Warehouse Material Handling Equipment (MHE)

Transportation/Distribution

Is this sample what you are looking for?
Sign up to use & customise this template, or create your own custom checklist:

Checklist by GoAudits.com – Please note that this checklist is intended as an example. We do not guarantee compliance with the laws applicable to your territory or industry. You should seek professional advice to determine how this checklist should be adapted to your workplace or jurisdiction.

Easy inspection app for your digital checklists

Conduct inspections anytime, anywhere - even offline
Capture photos as proof of compliance or areas needing attention
Instantly generate and share detailed reports after the inspections
Assign & track follow-up tasks, view historical trends on a centralized dashboard

Supply Chain Audit Checklist

Use the Supply Chain Audit Checklist to evaluate and improve your supply chain processes, including supplier performance, inventory management, etc.

1. Has your company implemented a supplier performance management program?

2. Are supplier performance KPIs used as part of supplier performance management?

3. Are supplier performance KPIs focused on value for your end-customers?

4. Does your company capture the reasons behind suppliers' missed KPI targets?

5. Does your company use the performance management process to drive forward-looking, added-value opportunities?

6. Does the process include regular face-to-face meetings between suppliers and key stakeholders from your company?

7. When there is a need for performance improvement, is there a clear action plan identified, with specific dates for delivery?

8. Are action plans followed up regularly until objectives have been achieved?

9. Are suppliers chosen on the basis of the value offered, rather than the lowest price?

1. Has your company benchmarked supply chain performance against other supply chains with similar characteristics?

2. Does every supply chain-related function manage employee performance according to an objective structure of measurement?

3. Is employee performance measurement aligned with functional goals that support the supply chain strategy?

4. Are your company's supply chain KPIs straightforward and easy to understand for employees at all levels?

5. Is the range of KPIs balanced across a range of criteria, including financial, operational, and customer service?

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?

1. Does your company have a documented supply chain strategy?

2. Does your supply chain strategy clearly support the overall business strategy?

3. Is your supply chain strategy supported by clear and understandable functional, team, and individual performance objectives?

4. Do you have a set of key performance indicators (KPIs) to measure performance against strategic supply chain objectives?

5. Are your supply chain KPIs aligned across all functions touched by the supply chain?

6. Are employees' incentives and compensation linked to your strategic supply chain objectives?

1. Does your supply chain strategy include objectives for customer service improvement?

2. Does your company use customer-focused KPIs such as "Perfect Order" or DIFOT?

3. Is each customer-focused KPI cascaded down to each supply chain function and tailored to measure functional customer service performance?

4. Are supply chain employees trained to understand the concept of internal and external customers?

5. Do employees in all supply chain functions receive customer service-related training?

6. Does your company regularly gather feedback from customers to assess their current and future needs?

7. Does your company seek feedback from customers who stop placing orders or defect to other suppliers?

1. Has your company ever performed a review of its distribution network design with a view to optimization?

2. Has a distribution network design optimization project ever been completed?

3. Has a network design review taken place within the last 5 years?

4. If your supply chain has been impacted by a merger or acquisition, has a distribution network review since been conducted?

5. Are your company's customers satisfied with product availability and service lead times?

1. Are items checked for quality, quantity, and condition upon arrival of each inbound shipment?

2. Do you have a booking-in process for suppliers, with a time slot allocated to each inbound delivery?

3. Does your company insist on the use of advanced shipping notifications by all suppliers (as far as practicable)?

1. Has your company implemented a cycle-counting program in all its DCs/warehouses?

2. Is all inventory included during counts, even those items set aside for repackaging or other reasons?

3. When counting, is every discrepancy between "counted stock" and "stock on record" double-checked and investigated?

4. Is your inventory categorized and segmented by the ABC inventory system or similar?

5. Does your company actively collaborate with customers and suppliers to develop inventory strategies?

6. When stock becomes obsolete or is discontinued, does your company move quickly to write it down or sell it off at a discount?

7. Has your company implemented a Sales and Operations Planning (S&OP) process?

1. Has your company modeled and optimized the layout of its warehouse space/s?

2. Are warehouse layouts reviewed on a regular basis?

3. Are your fastest-moving SKUs stored close to the shipping areas/loading doors in your warehouses?

4. Are warehouse spaces clearly segregated into areas for receiving, storage, picking, dispatch, and where applicable, cross-docking?

1. Do your warehouse operations include a structured system for pick-face replenishment?

2. Is warehouse health and safety managed using a proactive system (near-miss and hazard reporting)?

3. Do warehouse managers practice a fully documented handover during shift changes?

4. Is a rigorous housekeeping policy and process in place in each warehouse?

5. Has your company implemented a warehouse management system (WMS) in each of its warehouses?

6. Do warehouse management systems include hands-free transaction recording (bar-code scanning or RFID)?

7. Has your company eliminated paper-based warehouse processes?

8. Does your warehouse management team operate a continuous improvement program (Lean, Six Sigma, PDCA, or similar)?

9. Are your warehouses managed in a way that directly supports your company's supply chain strategy?

1. Is MHE utilized to the maximum?

2. Is MHE adequate for a balanced operation?

3. Do you have MHE of the right types and sizes for each activity and environment within your company's warehouses?

4. Is all MHE maintained according to manufacturers' recommended programs, including preventative maintenance schedules?

5. Does your company enforce a strict policy regarding the authorized use of MHE by qualified operatives?

1. Has your company's decisions regarding insourcing/outsourcing of (road) transportation been based on a balancing of the costs and benefits?

2. If insourced: is your fleet effectively utilized?

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?

4. If insourced: does your company have vehicles of the right type and capacity for the transportation activities performed?

5. If outsourced: Does your company insist on service-level agreements with high-volume carriers?

6. If outsourced: do you monitor and measure the performance of 3PL partners using agreed KPIs?

7. If outsourced: do you have a dedicated person (or team) employed with responsibility for managing the outsourcing relationship?

8. If outsourced: do you and your outsourcing partners have a clear and aligned understanding of how risks and liabilities are apportioned?

9. Is your transport/distribution operation managed in a way that directly supports your company's supply chain strategy?