Beau Knows: Employee Theft

November 4th, 2016 -

According to a study from Deyle and Checkpoint Systems an inventory management company, employee theft accounts for $18 billion dollars annually. How can we make a dent into that number?

Hire right – Do your due diligence before hiring; background checks and interviews are the first (and perhaps best) line of defense.

Scrutinize shipping & receiving procedures –The receiving area is one of the most likely places a theft will occur. There is so much activity going on that goods can be lifted and concealed easily. Implement loading/unloading practices that limit opportunities for employee collusion with outsiders and each other at the dock area.

Focus on access – Review the building’s layout to tighten access to craveable inventory and tools. Store valuable goods behind lockable cages or in secure racks. RFID tagging or other electronic tag technologies are also good options for instant inventory tracking.

Defend the perimeter – Evaluate perimeters to reduce external opportunities. Check for anything a thief can hide product in, under, behind or on top of as concealment point.

Get your people involved – Institute security awareness programs so that employees can participate in reducing theft. By developing a security awareness program and a creating a culture of honesty; thieves will know they are being watched and they will think long and hard before attempting to steal goods.

In the end it all comes down to basic deterrence:

• Hire the right employees

• Improve loading and unloading processes and procedures

• Increase security measures facility-wide

• Implement security awareness programs

When you take these steps you reduce theft opportunities, you empower honest employees,

increase productivity, and slash the high indirect costs of theft.

If you have any questions reach out to us at 423.267.1203 or online at Kencotoyotalift.com

Stay tuned for next month’s topic: Inhalants.