The supply chain is perhaps the most important factor in the operational process of companies. Its correct operation can bring different advantages such as the minimization of production and logistics costs, allowing the company to control the quality of its products and also, it can have relevant information to make decisions and implement the necessary measures according to the identified needs.

In order to know the supply chain state chain and to know if its operation is being efficient, it is necessary for companies to constantly carry out a logistics diagnosis at each of its stages. It is important to set measurable goals in advance that adhere to the best known practices, in order to be compared with the results of the diagnosis.

The logistics diagnosis should help prioritize the logistics strategy. Knowing in advance that resources are limited, managers are obliged to allocate them in the best way to obtain greater benefits from operations. It is important that the diagnosis is carried out in different stages, beginning by defining the strategy that will be developed, including the administrative and demand planning spheres. Then, the production process must be clearly defined, including the supply and handling of raw materials. Subsequently, it is imperative to analyze and decide which will be the distribution channel and the product transportation, at the same time, specify the required storage mode according to the characteristics of the product. Finally, the process must be closed by establishing what will be the best method to provide excellent customer service.

It is possible to carry out the diagnosis following the guidelines defined in the good practices. This is a good method, because these standards have already been approved and guarantee good long-term results. However, there are different ways to do it, another one is to resort to financial or benchmarking reports.

As the logistical diagnosis is made, the process must be documented. At the end, it is necessary to prepare a report containing all the information acquired during the diagnosis. In addition, it is advisable to include a series of proposals to improve the logistics strategy at each stage of the supply chain. This entire process must be directly focused on generating added value that must be transferred to the client and the company’s shareholders.