Lesson 3.4: Auditing Transport and Delivery
Transport connects the supply chain to customers, sites, stores, production lines and end users. A transport audit reviews whether deliveries are reliable, cost-effective, safe and suitable for the organisation’s needs.
Important areas include:
Delivery performance
The audit should review on-time delivery, failed deliveries, customer complaints, delivery accuracy and proof of delivery records.
It is important to understand how “on time” is defined. Is it measured against the customer request date, the promised date or the planned route date? Different definitions can produce different results.
Transport cost
Transport costs may include carrier charges, fuel, driver time, vehicle maintenance, premium freight, failed delivery charges, waiting time and return journeys. The audit should check whether costs are visible and reviewed.
Carrier management
If external carriers are used, the audit should review contracts, service levels, performance reviews and issue management.
Route planning and vehicle use
The audit should check whether routes are planned efficiently and whether vehicles are used effectively. Poor planning can increase cost, emissions and delays.
Packaging and handling
Transport performance is affected by packaging. Poor packaging can lead to damage, wasted space, increased cost and customer dissatisfaction.
Legal and compliance considerations
Depending on the operation, transport may involve driver hours, vehicle checks, dangerous goods, temperature control, customs documentation or security requirements. The audit should identify relevant controls.
Transport audit evidence may include delivery data, carrier invoices, route plans, proof of delivery records, claims records, customer complaints and vehicle utilisation reports.
A common audit finding is the use of premium or emergency transport because earlier supply chain processes failed. For example, poor forecasting or late ordering may create urgent transport costs. The transport team may appear expensive, but the root cause may sit elsewhere.