What is the purpose of a supply chain audit?

The purpose of a supply chain audit is fundamentally to assess the effectiveness of supply chain operations. This involves a thorough examination of various components within the supply chain, including processes, systems, and practices, to ensure they are functioning optimally and aligning with the organization's strategic goals. By conducting an audit, firms can identify inefficiencies, bottlenecks, and areas for improvement, allowing for better decision-making and more effective resource allocation.

This process also helps in ensuring compliance with regulatory standards and industry best practices, fostering resilience and agility within the supply chain. By understanding the operational state through an audit, companies can enhance performance, manage risks, and ultimately provide better service to their customers. It serves as a foundational tool for continuous improvement and strategic planning in supply chain management.