Distribution Centres and Warehouses are more liable to employee theft than any other business. While you may focus on keeping criminals out of your warehouse, internal theft by company employees and contractors should also be considered.
I've seen many different types of warehouse and distribution centre theft, and one of the most common methods of theft in a warehouse environment involves a partnership between two employees, often a warehouse employee working with a delivery truck driver.
Sometimes, theft is committed by an employee you would never suspect, as it can be common place for inventory to go missing if employees feel under-appreciated or underpaid, or perhaps just feel that the occasional product is a fringe benefit of working in your Distribution Centre.
As you know some distribution centres are massive, and can be very challenging to monitor, therefore properly protecting your facility from internal theft by implementing the following preventative measures is a good start to reducing your internal theft risk.
- Always Limit Access to Your Warehouse. Protect your inventory by restricting the number of people who can access it. This will improve accountability among your employees and also limit the chances that a customer or unknown individual can walk in to your warehouse, and walk out with your inventory unnoticed. We recommend implementing a managed access control system to monitor who is accessing your warehouse, and at what times during the day, while restricting access outside of scheduled shifts and restricting unauthorized persons. Should an incident occur then you have records to refer to.
- Specifically Limit Access to Your Shipping and Receiving Area. Theft often occurs in the shipping and receiving area since it provides the opportunity to move product into personal vehicles, or in partnership with the driver, quickly and undetected. Protect your inventory by limiting which employees can access this area, and also by separating the shipping and receiving areas. Restrict access to personal vehicles in this area, and also ensure you do not allow employee or visitor parking close to your shipping or receiving doors.
- Always Monitor Your CCTV Surveillance. If you have already installed a CCTV surveillance system, be sure you are also monitoring it on a regular basis. Make sure you have multiple Video Screens around your facility; in the lunch room, general office etc., so there are many eyes watching what is going on around the facility. This way thieves don’t know who is watching. The value of a video system is having many people watching all the time. Thieves will be quick to discover an outdated monitoring system, its weaknesses, blind spots, or one that is not monitored often.
When your facility is closed, we strongly recommend using a verified audio and video security system with live monitoring from our central monitoring station as the solution to this problem. Not only will you be protected 24/7 without having to regularly monitor video yourself, you will also be protected from external threats after regular business hours. We also see value in having your monitoring services off site and independent of your business. - Screen All Your Employees. Conduct employee screening prior to hiring, including a criminal background check. Use a professional Company like BackChek. This will help you discover any high-risk applicants with a history that could contribute to inventory theft. It immediately takes out some of the risk. A thorough background check will also verify employment history, education and references, effectively removing any distrustful job candidates from the running.
- Secure Valuable Items. While your entire inventory is valuable, keep “hot products” or “in-demand” items of higher value, in a separate and secure area. You can also restrict access to these items by using the same managed access system in a lockable area and also ensure you are closely monitoring this area on a regular basis.
- Be Visible And Present. Becoming personally involved in the processes of your warehouse and building relationships with your employees can have a huge impact on theft prevention. Building a positive relationship with staff can lead to higher motivation and a feeling of appreciation. Being visible and present will also reduce opportunities for theft. If you are not available, ensure some level of management is on the floor. Those managers who are working with your employees should be well trained in leadership and also aware of what signs to look for that could indicate theft.
These basic security measures are great options to get you started on protecting your facility from internal threats. We can conduct a comprehensive and in-depth evaluation of your Warehouse and Distribution Centre to ensure you are effectively protecting your business from both internal and external threats. Give us a call at 1.866.766.4876 and contact us today for a free security plan!
About Sonitrol Western Canada
We're so confident in our technology and responsive service, that no one else in the industry can match our guarantee. Our unique verified audio and CCTV video business security solutions enable our operators to hear and see what is happening in your business before the criminals gain entry!! We verify the actual source of the alarm, and we get the police to attend the scene immediately. FOR A FREE SECURITY AUDIT, click here, or call 1-866-766-4876 - We are a security company with over 150 offices across North America serving clients across Western Canada in British Columbia, Alberta, Saskatchewan, Victoria, Vancouver, Edmonton, Calgary, Saskatoon.
Sonitrol Western Canada, with its Verified Electronic Security Systems, is committed to providing customers with the most comprehensive security protection. Cooperation in the elimination of false alarms is not only beneficial to the system’s user, but results in better protection of the entire community by allowing law enforcement to use their resources as efficiently as possible.
