A warehouse audit is an important part of continual improvement. But what is it and how do you implement one? Plus a free sample checklist.
Any business that stores and distributes products should have a warehouse audit process. It is a type of preventative measure that helps avoid costly issues, but also a great tool to correct operational problems in a warehouse. But what exactly is a warehouse audit and how do you perform one?
In this article, you will learn the answer to this question and the means to perform one yourself. In addition, we have provided an example checklist containing samples warehouse audit points to help you get started on developing your own proper warehouse audit.
A warehouse audit is a comprehensive assessment of the operations, processes, and inventory management at a warehouse. It is designed to help identify areas for improvement within the warehouse that can increase efficiency, reduce operational costs, and improve customer service. During an audit, a team of professionals inspects the facility for potential safety concerns, verifies employee qualifications for handling tasks, and reviews the warehouse inventory data for accuracy.
Warehouse audits can be used to assess compliance with safety regulations, measure productivity levels, and ensure accurate record-keeping. They are also useful for identifying money-saving opportunities through improved efficiency or better use of resources. By conducting regular audits, businesses help ensure their warehouses remain safe and efficient while providing maximum value to their customers.
We break down the main reasons for conducting a warehouse audit into 3 main categories. While there may be plenty of other reasons do conduct one, these are our 3 reasons:
Warehouse audits should be conducted at least annually, but can be more frequent if necessary. The reason why this is necessary is that a warehouse audit is such a vital part of the “continual improvement” (LEAN) process. The frequency can largely depend on the size and complexity of the warehouse operations. At the very least, every warehouse should have a scheduled audit and regular intervals of some sort.
It is also important to conduct an audit after any major changes or updates that could affect how the warehouse operates, such as new equipment, changes in personnel, or reorganization of inventory. Smaller “sub” audits can occur more frequently such as inventory audits every quarter.
A warehouse audit should be conducted by an experienced team of professionals, such as a certified auditor or an outside consulting firm. These professionals have the experience and knowledge to properly assess the operations and processes of a warehouse. It’s also helpful to have an auditing group from outside your organization because they will look at your operations with fresh eyes. This may allow them to notice problems more readily than a person inside the organization. An outside auditing firm also tends to be less biased toward potential problems.
However, a warehouse audit does not have to be performed by an external team. It can be an internal team devoted to the task as well. They must simply be able to provide objective feedback and guidance on how to improve efficiency, reduce costs, and increase customer satisfaction. The team should include members with different backgrounds and experience, such as operations management, warehouse safety, and inventory control. This way, all aspects of the audit can be covered properly.
The benefits of a warehouse audit are numerous. A warehouse audit can help identify areas in need of improvement, such as increasing efficiency or reducing operational costs. By conducting regular audits, businesses can improve their safety practices, measure productivity levels and accuracy of record-keeping, and identify opportunities for money-saving measures.
Audits also help to ensure compliance with safety regulations, which can reduce potential liabilities. Finally, an audit can ensure that customer service is up to par and help the organization stay ahead of its competition. All of these benefits contribute to a more efficient warehouse operation and increased profitability for the business.
Warehouse audit reports are typically graded on a point ranking system. This usually breaks each item on the checklist down to either “below average”, “average”, or “above average”. However, the report is not only a point system but coexists with a detailed analysis or reason for the rating.
The report should illustrate what is good and what areas need improvement. It doesn’t matter if you only audit warehouse inventory or a broader full warehouse audit. This audit helps formulate substantial feedback on root causes and how problem areas can improve.
Once a warehouse audit has been completed, its results should be presented in a formal report. This report serves as a tool for management to evaluate their warehouse operations, identify areas of improvement, and make strategic decisions. It should provide an objective analysis of the current state of the warehouse and actionable recommendations on what needs to be done to improve operations.
The report should document all areas that were inspected and include any observations or recommendations made by the auditing team. It should also clearly state the objectives of the audit, evaluate overall performance, and recommend solutions for areas needing improvement. Finally, it should guide how to implement the recommended solutions to achieve optimal performance from the warehouse operations.
The report should be used to track progress and measure the effectiveness of improvements made. Its contents should be reviewed closely by upper management, and any decisions or actions taken as a result of the audit should also be documented for future reference. By following up with the audit results, businesses can ensure that their warehouse operations are safe, efficient, and cost-effective.
