What does a 'supply chain audit' involve?

A 'supply chain audit' fundamentally involves a comprehensive review of the supply chain processes to identify areas for improvement. This audit assesses the various components of the supply chain, including sourcing, procurement, production, distribution, and delivery to ensure efficiency and effectiveness. The goal is to understand how well the supply chain is functioning and to pinpoint any weaknesses or inefficiencies that could be optimized.

By conducting a thorough investigation, organizations can gather insights that help streamline operations, reduce costs, enhance service levels, and ultimately create a more robust supply chain. This aligns with the strategic goals of improving overall supply chain management that supports business objectives.

While evaluating employee performance, analyzing customer feedback, and conducting financial reviews are all important aspects of supply chain management, they are not encompassed within the primary definition of a supply chain audit, which focuses specifically on overarching processes rather than individual components or performance evaluations.