Optimising logistics expansion with IT auditing
+$500k
from smart tech
20%
faster orders
25%
IT savings
Client
A mid-sized logistics company based in the USA specializes in providing end-to-end supply chain solutions for businesses across various industries. With a strong presence in the Midwest and rapidly expanding operations nationwide, they have built a reputation for their reliable transportation, warehousing, and inventory management services. As a company deeply rooted in the logistics industry, the client understands the importance of efficiency, timely delivery, and cost-effectiveness for their clients, and continuously strives to optimize operations to stay ahead in the competitive market.
Business vertical
Logistics
Team size
3 specialists: 1 IT Auditor, 1 Data Analyst, 1 Security Expert.
Project duration
3 weeks
Challenge
The client was aware of certain challenges hindering their operations but lacked clarity on their magnitude and scope. They sensed the need for a thorough audit to gain insights into their logistics system’s strengths and weaknesses, enabling informed decision-making to streamline processes, increase efficiency, and improve performance.
Project scope
Service Model | KPIs |
|---|---|
IT Infrastructure assessment: Evaluate the logistics company’s IT systems, including hardware, software, and network components, to ensure they meet industry standards and support operational efficiency. | Identify and document inefficiencies, vulnerabilities, and areas for improvement within the IT infrastructure and logistics processes. |
Data management practices: Review the client’s data management practices, focusing on data quality, availability, and security. | Provide actionable recommendations to address identified issues, aligned with industry best practices and the company’s strategic goals. |
Process analysis: Examine logistics processes, such as order management, transportation, and inventory management, to identify bottlenecks and areas for improvement. | Achieve minimum 15% reduction in IT-related operational costs through optimization and process improvements. |
Consulting process
Initiation and scoping
Modsen IT consulting team met with the client’s COO and IT Director to discuss project objectives and concerns. Together we outlined the project scope, setting a 3-week timeline with milestones for data collection, analysis, and report delivery.
Client requirements gathering
Over the next few days, Modsen conducted virtual workshops with key stakeholders from the client’s logistics, IT, and customer service departments. We also analyzed the results of the online surveys the client conducted earlier to gather input from employees at various levels.
Team assembly
Within 24 hours of project initiation, we carefully selected and assembled a multidisciplinary team of experts to address the unique challenges faced by the logistics company.
The team consisted of three IT auditors, each with an average of 8 years of experience in IT systems and infrastructure assessment; two security experts with over 10 years of experience in cybersecurity and data protection; three data analysts, skilled in analyzing large data sets, identifying trends, and extracting valuable insights. With backgrounds in logistics and supply chain management, they brought a deep understanding of industry-specific data challenges and best practices.
To facilitate efficient communication and collaboration among team members, we established clear channels for information sharing and regular progress updates. Team leads held daily huddles with the client to discuss findings, align on goals, and ensure the project stayed on track.
Project auditing
Initial assessment and planning
Modsen team began the audit process with a remote assessment of the logistics company’s IT infrastructure. To facilitate this, the client granted us secure, temporary access to their systems, including their ERP and transportation management software. We utilized specialized IT system inventory tools to document and analyze the various components of the IT infrastructure. This approach minimized on-site visits and enabled efficient data gathering while ensuring data security and privacy.
Data collection and analysis
With remote access to the client’s systems, the team collected data over two weeks. This data included system performance metrics, user access logs, security configurations, and process-related information from their logistics operations. We employed advanced data analysis software to process and analyze this information, identifying trends, anomalies, and potential areas of concern within the IT infrastructure and logistics processes.
Continuous monitoring and communication
To ensure transparency and collaboration, we set up a cloud-based reporting dashboard accessible to both our team and the logistics company’s management to provide real-time updates on our progress, key findings, and preliminary recommendations. Regular virtual meetings were held with the client’s stakeholders to discuss the audit’s progress, address any concerns, and incorporate their feedback into our approach.
By conducting the audit remotely and leveraging secure access to the logistics company’s systems, we ensured a comprehensive assessment while minimizing disruption to their daily operations. This approach allowed Modsen team to maintain a high level of data security and flexibility, leading to a successful IT audit that met the client's objectives.
Audit results delivery
After two weeks, we presented our findings to the client’s leadership, highlighting inefficiencies, security vulnerabilities, and opportunities for improvement. Discussions were held via video conferencing, allowing for interactive Q&A sessions.
Provision of documented recommendations
We developed actionable recommendations based on audit findings, industry best practices, and the client’s objectives. Each recommendation included a clear description, rationale, priority level, and implementation guidelines.
Additionally, we collaborated with the client to create a tailored remediation plan, incorporating:
Prioritized recommendations
Resource allocation plan
Risk assessment
Such a complex approach empowered the client to address the audit findings and improve their IT and logistics operations effectively.
Key deliverables
Executive summary
A high-level overview of the audit's objectives, scope, and key findings, emphasizing the most critical issues and opportunities for improvement.
Detailed findings
An in-depth analysis of the identified issues, organized by category (e.g., IT infrastructure, data management, security, logistics processes). Each issue includes a description, potential impact, and relevant data to support the findings.
Recommendations
Actionable, prioritized recommendations to address the identified issues, with a focus on improving efficiency, security, and alignment with industry best practices.
Remediation plan
A step-by-step plan for implementing the recommendations, including resource requirements and potential challenges.
Results and impact
The IT infrastructure audit project was pivotal in addressing the company’s IT and logistics challenges, enabling it to create a solid foundation for its expansion efforts:
Achieved a 25% reduction in IT-related operational costs, resulting in $200,000 annual savings.
Streamlined processes and reduced delivery delays by 20%, boosting operational efficiency and customer satisfaction scores by 38%.
Enhanced data security and compliance, minimizing exposure to potential financial and reputational risks.
Successfully integrated new technologies, improving overall efficiency by 10% and contributing an additional $500,000 in annual revenue.
Identified and addressed bottlenecks in inventory management, reducing order fulfillment times by 20%. The optimization led to efficient processing of increased demand and generated an additional $50,000 in monthly revenue.
25%
IT cost reduction, saving $200k annually
20%
Faster order fulfillment, fewer delays
+$500K
Revenue from smart tech integration
38%
Happier customers