How to Conduct a Logistics Audit to Cut Costs Before Peak Season
Before the peak season rush, conduct a logistics audit to find and fix hidden costs. Our 7-point checklist for Nigerian businesses helps improve efficiency and profitability.
The "ember" months are just around the corner. For Nigerian businesses, this period represents the biggest sales opportunity of the year. But it's also when operational weaknesses, minor inefficiencies, and hidden costs are magnified under the pressure of high order volumes, leading to what should be a profitable season becoming a chaotic scramble.
What if, instead of waiting for the rush to expose your problems, you could find and fix them now? This is the power of a logistics audit. It’s a comprehensive health check for your entire supply chain—from your storeroom to your customer’s doorstep.
Conducting a thorough logistics audit in Q3 is the most strategic move you can make to ensure your operations are lean, efficient, and ready for the profitable chaos of Q4. This guide offers a straightforward, 7-point framework to help you achieve just that.
What Exactly is a Logistics Audit?
A logistics audit is a systematic review of every component of your logistics process. Its goal is to move beyond assumptions and use data to identify specific areas of waste, inefficiency, and excessive cost. It’s about finding opportunities for logistics process improvement and getting your business in fighting shape for its most important season.
Your 7-Point Logistics Audit Checklist
Set aside a few hours and honestly assess your business against these seven critical points.
1. Carrier & Courier Performance Audit
Your delivery partners can be a major source of either strength or weakness. It's time to check the numbers.
- Key Questions: Are you getting the best possible rates from your current partners? What is their actual on-time delivery percentage over the last three months? How many customer complaints are related to your couriers?
- Action: If you don't have this data, it's a red flag. A proper audit might reveal it’s time to renegotiate terms or even review how to choose the right courier service in Nigeria.
2. Inventory & Warehouse Flow Audit
Your storeroom is where profit can leak away silently. This part of the logistics audit focuses on stock and speed.
- Key Questions: How accurate is your inventory count right now? How much capital is tied up in products that haven't sold in over 90 days? Critically, how long does it take your team to pick, pack, and prepare an order for dispatch?
- Action: Slow processing time is a major bottleneck. A deep dive here often reveals the need for a better SME's guide to inventory management to improve layout and processes.
3. Packaging & Weight Audit
Shipping costs aren't just about distance. They're heavily influenced by package size and weight.
- Key Questions: Are you using boxes that are too big for your products, leading to you paying for "dimensional weight"? Could you use lighter packaging materials without compromising safety?
- Action: A simple change in box size or a switch from cardboard to padded mailers for smaller items can lead to significant savings across thousands of orders.
4. Technology Stack Audit
The software, or lack thereof, that runs your operations can be your greatest asset or your biggest bottleneck.
- Key Questions: Is your team still operating out of WhatsApp and spreadsheets? Does your software provide the real-time data you need to make smart decisions?
- Action: If your answer involves manual data entry and constant phone calls, your technology is failing. It's a clear sign your business needs delivery management software to automate and centralize your operations.
5. Reverse Logistics (Returns) Audit
Handling returns is a necessary part of business, but it can be incredibly costly if not managed efficiently.
- Key Questions: What is your true cost per return, including shipping, staff time, and repackaging? Is your returns process convenient for customers but cost-effective for you?
- Action: A confusing or inefficient returns process not only costs money but also damages customer loyalty, a key element of your overall e-commerce delivery management strategy.
6. Fleet & Vehicle Performance Audit
If you run your vehicles, this is a critical part of your logistics audit.
- Key Questions: What is your average fuel cost per vehicle? How much downtime have you had for maintenance in the last quarter? Are you tracking driver behaviour to identify fuel-wasting habits?
- Action: Having a robust fleet management and driver management practice can provide clear, actionable data to improve vehicle health and reduce costs.
7. Customer Feedback & Satisfaction Audit
Your customers will often tell you exactly where the leaks are, for free.
- Key Questions: What is the most common delivery-related complaint you receive? Are customers asking for faster shipping options or more communication?
- Action: Review customer service emails, social media comments, and product reviews. This qualitative data is invaluable for pinpointing the issues that matter most to the people who pay you.
Using Technology to Fix Logistics Leaks
Completing this logistics audit will give you a clear diagnosis of your operational health. But a diagnosis is useless without a prescription. The findings will likely point to a need for greater visibility, more data, and better control.
This is where a centralized logistics platform becomes essential. It’s the tool that allows you to:
- Track courier performance with real data.
- Get real-time inventory-level alerts.
- Optimize routes to cut fuel costs.
- Automate customer communication.
It's the engine for logistics process improvement and the foundation for true supply chain optimization.
Prepare Now, Profit Later
The time to strengthen your operations is now, during the relative calm of August and September, not in the middle of the November sales frenzy. By taking the time to conduct a thorough logistics audit, you are moving from a reactive to a proactive mindset and giving your business the best possible chance to thrive during the peak season.
Ready to turn your audit findings into action?
Discover how Dellioo’s all-in-one platform gives you the visibility and control to fix operational leaks and prepare your business for peak season. Schedule a free consultation with our experts today.