Member Article

Failing to audit…means planning to fail

FM consultancies and departments are risking losing out to the competition by not regularly reviewing the efficiencies of their supply chains, according to experts at Office Depot.

The costs involved in implementing an audit are far outweighed by the benefits that can be recouped by proactively driving more efficient processes but for many, this is only a step that’s taken when a supply chain problem arises – which can end up costing even more, in terms of lost custom and reputation, as well as the audit itself.

Demand, as ever, is changeable and fast-moving, so the FM function needs to be poised to meet this head on and within a small window of opportunity.

As well as driving immediate benefits, external auditing forces specialists to constantly question the efficiency of their supply chain efforts and reach a point where this becomes second nature – resulting in the implementation of internal auditing and checks to ensure objectives are being met during the time in between external audits.

Nigel Crunden, business specialist at Office Depot, said:

“The need to maintain complete transparency is key and one of the aims of the auditing process is to get more familiar with the activities of the full length of the supply chain. This will allow firms to fully understand where potential failures might lie, outlay the risks and put contingency plans in place.

“However, it is important to remember that auditing must be considered holistically, with formal external audits that benchmark efforts against industry counterparts, triggering internal controls and checks that seek to continuously improve supply chain performance in terms of cost-reductions and efficiencies.”

Often, supply chain audits can show the need to reduce suppliers. Although this can happen (as multiple needs can often be serviced by a single provider) the audit process should primarily be seen as a chance to improve current relationships, not discard them.

Nigel Crunden continues:

“Maintaining visibility down the entire length of the supply chain is what lies at the heart of any auditing effort. Furthermore, it is something that cannot be ignored until a problem triggers action that should have been taken before an issue arose – taking this route will only end up costing more.

“It is far better to take a clear stand on pro-actively driving efficiencies out of the supply chain – leading to a better performing and longer-lasting function in the process.”

Test the strength of your supply chain here

This was posted in Bdaily's Members' News section by Office Depot .