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8 Tips For Employees Theft Prevention In Your Distribution Center

employee theft

The businesses run through the in and out of the inventory. An entity earns its profits from the purchase and sale of stock that it holds. But what if your stock is getting stolen? One of the riskiest areas related to fraud and theft is inventory which an organization is holding. When I said the above mentioned sentences, I bet that most of you imagined a customer stealing your goods. However, this is a misconception among people.

employee theft

Most of the inventory theft cases tell that the inventory is taken by the employee more often than the customers. You need to keep a track on your business loss. Check whether the loss is arising due to inventory theft or any other reasons. Stocks is a material component in the distribution businesses. So set back, relax, and see the list of measures that will surely help you tackle this misappropriation problem.

  • Appoint guards at the checkpoints and site exit:

An employee will take away the inventory that he steals. In short, the stock will pass the exit point at some point in time. Employing a guard or a watchman at a proper checkpoint will help your cause. For this function's efficiency, you must give the guard authority to check the vehicles and items going out. If you are unable to build a checkpoint due to the size of your organization, then you can assign a checker or manager to the exit of your premises. Provide the manager with the record of inventory that is to be checked by him.

  • Differentiate between received goods and the goods need to be dispatched:

It is quite simple: keep the products that you've received or purchased separately from the ones that you have to deliver. This control requires you to have two different stores or warehouse at the same time. Each of the two different products that we discussed earlier. Having separate storage area for your inventory and then a guard on exit point will solve the majority of your problems.

If you run a small business and cannot have separate warehouses, then you should at least keep both the goods apart in the same store. The logic behind this control is to keep your stocks separate and make it easier for you and your staff to count the goods that just came. Another objective of this control is to prevent the staff from taking away products that just arrived.

  • Maintain distance between stores and the dispatch area:

A standard distance between the store and the dispatch area is of 10 feet. Make sure that you keep a fair distance with the above mentioned places.

The primary objective of this control is to achieve control over the movement of your inventory. The goods near your dispatching area must be the ones included in the dispatch or items received notes.

  • Location of the store manager’s office:

The office of a store manager must be at the point with the maximum level of visibility. A warehouse with proper theft controls must have a loyal manager with better observatory environment. The quality of observation depends immensely on the amount of area that a manager can see from his office.

The store must be in sight of the office. This elevation will help him observe most of the things happening in the store. This control has two main advantages. The first advantage is that the quality of manager’s observation enhances & the second advantage is that the employees know that the manager might have an eye on what he is doing. Here’s an article to help you assess the importance of store manager.

  • Not allowing the private vehicles:

The employee will never keep the stolen goods in your company’s dispatch vehicle. Instead, he will find a chance to transfer the products to his own, as soon as possible.

A different parking area for the employees must be made to keep such things from happening. This parking area must be far away from your stores. The further the two places are, the lower the chances of appropriation are.

  • Keep a check on your drivers:

The best ways to stop your drivers from the theft of inventory that you hold are numerous. Some of these measures are under discussion here. Prevent your drivers from hanging around the stores and dispatch area without any reason. Build a separate waiting lounge for your drivers where they can have tea and other refreshments.

Also, advising them not to hover around the vehicles while the store staff is loading and unloading.

  • Use the technology:


What’s better than the use of technology? The technological measures are the best when you maintain them with due care. The surveillance cameras, barcode readers, and computer systems are a few examples of what technology can do for your warehouse. The camera network can help you in the best ways.

  • Record everything:

Record each and everything happening in your stores. Enter the inventories that you just received and cancel out the dispatched items. The key to the efficiency of this measure is to record everything timely and accurately.

Hire an accounting staff with good accounting knowledge and tell them to produce the necessary documents related to dispatch and receipt of goods. Complete records help your team to reconcile the amount of physical stock with the records written in the books of accounts. A proper guide to complete document can help you organize your recording system.

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