When deciding to form a strategic partnership the book recommends performing an audit of needs and overall strategies with regard to logistics operations. What is the goal of the audit, and what types of information should come from the audit?

Answer 1

This audit provides a perspective on the firm's transportation and logistics activities, as well as developing a wide range of useful information that will be helpful as the opportunity to form relationships is contemplated. Some of the types of information that may become available as a result of the audit include:
• Overall role of transportation and logistics in support of business goals and objectives
• Needs assessment to include requirements of customers, suppliers, and key logistics providers
• Identification and analysis of strategic environmental factors and industry trends
• Profile of current logistics network and the firm's positioning in respective supply chains
• Benchmark, or target, values for logistics costs and key performance measurements
• Identification of "gaps" between current and desired measures of logistics performance (qualitative and quantitative)

Given the significance of most transportation and logistics relationship decisions, and the potential complexity of the overall process, any time taken at the outset to gain an understanding of one's needs is well spent.