Logistics Audit – monitoring performance, detecting frauds
Audit controls are an integral part of any business, and no different in logistics. The availability of regular audit reports in the logistics information system will help the business owners to access daily operational data, compare and monitor variations in parameters such as tonnage, dispatches, inventory, trips, fuel consumed, driver attendance, spares inventory, workshop job cards, tyre tracking etc
- Thefts of cargo in transit remain the highest proportion of the total, all through the 71% share is a decrease from 2019 (87%)
- Losses from warehouses and other storage facilities increases to 25%
- An atypical year due to supply chain threats from the pandemic. These likely to be of continued concern well into 2021
- New high-value targets created such as PPE, face masks, and anti-bacterial gel. Vaccine supply chain to come under threat as roll out expands
- Food & beverage sector remains the largest target at 31%
Logistics audit can be done with the assistance of internal and external auditors, for which a disciplined report verification and action-oriented culture will have to be introduced in your logistics business.
As an example, a perpetual, weekly inventory count of workshop spares will help in reducing potential theft. Similarly, a weekly random check on the cargo inventory will ensure that cargo theft is minimized. Theft in transit represents the largest share of missing cargo globally, as per a global report.
A robustly designed information system with machine learning ability will help in detecting trends in cargo inventory.
Tagging of high-value cargo with reusable Bluetooth tags for inventory tracking will ensure minimal loss of cargo due to theft.
Restricting visitors in warehouses and yards, providing them with tracking tags will ensure logistics audit traceability.
Bring large scale automation into the logistics operations aspects
With the help of 3G / 4G enabled tracking devices, it is now possible to spot the location, opening, and closing of cargo latches, the conditions under which the cargo gets handled.
Cold chain monitoring with data loggers will ensure the longevity of perishable goods and live-saving vaccines.
Fuel theft in running trucks can be reduced by fitting special locks on the outlets.
Introduce digital self services in logistics customer touch points.
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