How Warehouses Can Prevent Employee Theft

How Warehouses Can Prevent Employee Theft

In warehouses, it’s a common thing to expect inventory shrinkage and financial loss, but within certain limits. There are a number of reasons why warehouses can regularly experience these issues, but incidents involving theft of full truckloads or even a handful of pieces here and there should be detected and addressed early and often.

About $50 billion is stolen every year from businesses by their employees, and a great deal of that comes from warehouse or freight theft. Facility thefts are seeing an increase year over year and with numbers continuing to rise, it’s important for warehouse managers to invest in proactive measures to keep this limited. Here are a few ideas to keep in mind.

First, Insure Your Warehouse

It would behoove any warehouse location to get the protection it needs from things like theft and loss. Comprehensive warehouse insurance can provide the protection needed to financially restore the amount lost through theft. Warehouse insurance is specifically made to safeguard commercial warehouse operations in the event of theft, whether it’s internal jobs from employees or outside issues, such as road theft.

Keeping an Eye Out for Theft

The best way to keep an eye on theft in your warehouse is to conduct regular stock checks. This may seem laborious to some employees, but it will most assuredly keep inventory in line with the numbers that are recorded. Without these regular checks, thefts may go unnoticed, especially if they’re the kind where one or two items are taken at a time.

Conduct Background Checks

This may seem like a rule of thumb, but some companies do brush over this without giving it much thought. Having effective background screening instilled in your hiring process will help to spot discrepancies in potential employees’ past that can help you decide if you want them on your staff.

Looking at criminal records and past work experience will help to drastically reduce chances of warehouse theft. Checking criminal history of potential employees as well as checking with previous employers as to their work performance and feedback will combine for good due diligence.

Educate Employees About Theft Policy

It’s important that employees on staff be kept up to date on important theft policy notes. Make sure all employees are aware of a zero-tolerance policy when it comes to fraud or theft. Having them sign a code of conduct that transparently outlines how violations will be punished and dealt with is another way to keep everyone honest and aware.

Limit Access to Stock

Use the layout of your warehouse to your advantage in creating barriers that help to prevent theft. Separate your receiving and shipping docks whenever and wherever possible as this will help to prevent new stock from being loaded onto an existing truck before it’s unloaded into your warehouse.

About The Hilb Group

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.