WAREHOUSING [ INSIGHT ]
by Nick Rakovsky CEO, DataDocks nick@datadocks.com | 647-848-8250
How to Thoroughly Audit a Warehouse Supply chains are getting more complex and margins tighter. If you’re responsible for warehousing, odds are you’re feeling the pressure for more detailed reporting. Senior execs and customers want proof your operations are both efficient and resilient. A comprehensive audit is the key to
The human element matters most here. Watch those user access rights and password policies; most breaches start with basic credential issues. Build incident response plans for everything from storms to cyber attacks. Don’t forget your vendors—their security gaps can soon become yours. 4. Operational performance. Here’s where granular analysis translates to bottom-line improvements. Map your warehouse’s flow from receiving through shipping. You’ll spot connections that daily operations obscure. Time studies and error tracking show exactly where your processes stumble or shine. Equipment usage often surprises. Look beyond basic runtime stats to see how well each asset pulls its weight. Check your vertical space too, as there’s usually room to grow upward. Take a hard look at picking and packing—small movements add up to big inefficiencies. Industry benchmarks matter, but context matters more. A process that looks efficient on paper might mask real problems underneath. Your floor staff know this best. Their daily experience cuts through the numbers to show what really needs fixing, and often how to fix it. MAKING YOUR AUDIT COUNT Turn your findings into action. The best audit in the world means nothing until you use it to drive real change. n
Start with the basics. Permits and licenses must be current and within reach. Walk your facility with fresh eyes, taking extra care with hazardous material handling areas. Document everything you see, photos included. You’ll appreciate this evidence during external audits. Training records need special scrutiny. Check every certification and training log, as gaps here can spiral into serious liability issues. The same goes for safety procedures and incident reports. Keep a clear paper trail that shows how you run a tight ship. 3. Risk and cybersecurity. Modern warehouses face threats both old and new. Walk your facility methodically, noting every vulnerability in your security perimeter. Your access controls should catch all movement, and your surveillance system needs to cover every corner. Digital security demands its own rigor. Run penetration tests to spot weaknesses in your IT systems before someone else does. Test your data backups; they’re worthless if they fail when needed. Keep your network security tight, from firewalls to encryption.
earning the confidence of stakeholders. Done well, it demonstrates both control over operations and a commitment to accountability. A warehouse audit should cover four critical areas: 1. The financial aspect. Start with inventory. A full physical count during your slowest period works best, especially if you can freeze inventory movements. This count typically surfaces discrepancies, so be ready to document them and understand their financial impact. Your valuation methods need solid grounding. Work with accounting to verify consistent application of your chosen method, whether FIFO, LIFO, or weighted average. Documentation matters just as much. Keep purchase orders, invoices, and transaction logs organized and accessible. Pay attention to labor costs—the split between regular and overtime pay reveals where your operation could run leaner. 2. Regulatory compliance. A solid regulatory checklist keeps you out of trouble. Cover the essentials: OSHA standards, environmental regulations, labor laws, and industry-specific mandates.
22 Inbound Logistics • February 2025
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