In this first part of our Theft Series, we will be looking at the delivery and receiving process and how and when theft can occur.
It’s important to pay close attention to the quality checking of your items before the receiving process. It may seem paranoid, but delivery personnel can lend a hand in the theft process of your inventory before it even makes it to the warehouse.
Internal theft can lend up to 35% of inventory shrinkage so it’s important to know where your inventory is coming from, where it’s going, and who is handling it at all times. The shipping process can be broken down into 5 stages. Problems can occur at any time during this process so it’s beneficial to know any and all possible solutions to prevent and resolve this.
Stage 1: Order Picking
Problem:
- During the picking process, the picker takes an item from the shelf and stashes it
Solutions:
- Screen your pickers before hiring
- Only allow one door to enter and exit the warehouse
- Keep employee parking a distance away from the warehouse
- Keep an eye out for any empty packaging laying around
Stage 2: Checking the Order In Staging Area
Problem:
- Items are being stolen before they are loaded
Solutions:
- Keep a close watch on the staging area and restrict access to only required personnel
DID YOU KNOW? 87% of losses happen in freight yards and warehouses.
Stage 3: Truck Arrival
Problem:
- The driver is left unattended and has opportunities to steal items
Solutions:
- Always monitor outside personnel to make sure they don’t wander around the warehouse
- Don’t allow the driver to open the truck door until unloading is ready to begin
DID YOU KNOW? In the U.S. alone, freight transit theft loses $10 billion annually.
Stage 4: Goods are loaded on the truck
Problem:
- The shipper and driver overload the truck
Solutions:
- Don’t allow the same person who counts the order to sign off on it
- Do a final count before the truck leaves
Stage 5: The truck is sealed
Problem:
- A faulty seal is used allowing easy access for the driver to steal items.
Solutions:
- Double check the seal number with the one on the paperwork
- Don’t let the driver put the seal on themselves.
