Warehouse inventory shrinkage either due to missing stock or theft of stock, is a very real problem faced by businesses the world over and is hard to spot and even harder to stop. In this article we take a look how a WMS can help you Spot and Stop Warehouse Theft. While there’s no ‘magic wand’ or simple one-step solution to the problem, we know, from experience, that having a warehouse management system (WMS) in your arsenal in the fight against internal theft is key to winning the battle.
Reducing the cost of losses incurred due to theft is not impossible to achieve. With a combination of an excellent WMS backed by robust processes, security systems, staff education programmes and stringent hiring procedures, you can significantly reduce the occurrence of theft in the business and thereby reduce the cost incurred.
Warehouse theft-prevention – how to spot and stop theft
Your first line of attack is being able to identify warehouse theft. Once you know it’s happening you can then take additional measures to stop it.
How can you make sure you are able to spot warehouse theft?
The secret lies in accurate inventory tracking – the only way you spot it is if you are accurately tracking your stock which will also enable you to tell what type of losses are occurring and this is where implementing a good WMS can save the day.
With a WMS you can say goodbye to the notion of trying to keep track of stock manually – a frustrating process often filled with errors and with stock takes feared and dreaded to such an extent that are avoided and thus done infrequently, leaving managers and owners in the dark, ‘unarmed’ and vulnerable to the threat of warehouse theft.
Knowing exactly what stock you have on hand and where that stock is located in your warehouse helps you identify missing stock immediately and ultimately reduces warehouse theft. Doing regular stock takes is also key as with the accurate inventory data on hand you’ll pick up on theft faster. Without regular stock takes, picking up on inventory levels shrinking suspiciously may only happen months down the line – a journey during which you may have been bleeding cash.
All of the above is made much simpler, faster and easier and way more accurate with a WMS which gives you THE most accurate, real-time data all at your fingertips. The less accurate your inventory tracking the faster your business becomes a target for theft.
Take the target off your back with the help of a QWIX warehouse management system.
In addition to spotting theft thanks to a great WMS, what else can you do to prevent it?
- Educate – educate employees about company policy on theft and emphasise consequences of theft, not just for perpetrators but for the entire business and its long-term sustainability.
- Take swift action – one of the many advantages of having a WMS is that you are able to pick up on any discrepancies quickly. This gives you the golden opportunity to look into them and deal with them immediately. The longer stock discrepancies go unnoticed or the longer you leave it, the harder it is to determine whether missing stock items are lost or stolen.
- Be visible – get up from your desk, hit the warehouse floor and spend some time there. Having a strong managerial presence on the warehouse floor will deter theft. Having a WMS with a mobile component gives managers the opportunity to work ‘desk-free’ – just another reason why you should consider implementing a QWIX WMS
- Be smart when it comes to access – limiting access to stock in the warehouse can reduce the opportunities for theft. Have a look at the physical layout of your warehouse and see if you can form barriers to prevent opportunity for theft. For instance, having separate receiving and shipping areas can avoid new stock about to be received from disappearing straight into am outbound vehicle before it’s even ‘set foot’ in your warehouse or by providing a specific, totally separate rest area for inbound truck drivers you can limit access to the warehouse and distribution area to your staff only.
- Ensure your records are less ‘corruptible’ – digital record-keeping and tracking is far more secure than a “paper trail” which allows ample opportunities for ‘editing’ and changing or for things to mysteriously disappear – another advantage to WMS which reduces the chances of theft.
- Beef-up security – security systems such as CCTV camera systems or even Access Control systems in the warehouse can play a deterrent role and also provide key evidence of theft taking place.
We hope we have given you some food for thought in terms of how a warehouse management system (WMS) can help you spot and stop theft in your business. Start your warehouse theft prevention process by contacting QWIX – find out how our expert Supply Chain Consulting team can help you formulate a plan and how you can implement our world-class QWIX Warehouse Management System(WMS) and enjoy comprehensive inventory and asset tracking.
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