Small business owners that invest in a warehouse must be aware of the potential challenges of owning or renting one. One such problem they might encounter is inventory shrinkage because of theft. You will incur losses and additional costs because of this. This eats into your possible profit and hampers operations.
These are some of the ways you can prevent theft along your supply chain management process.
Control Access to Inventory
A rented or owned warehouse has plenty of benefits; however, it also comes with problems such as inventory theft. One of the ways to prevent the latter is to limit access to stock. Designate specific teams and areas for receiving, organising, and delivering inventory. Reduce the number of people who have keys and clearance to expensive items in your storage room. Indicate an area in your warehouse where drivers wait to load or unload items. This approach provides you with a way to immediately identify where and when the theft took place.
Manager Visibility is Important
As an owner of a growing company, you or your managers must be hands-on in managing your warehouse. Managerial visibility deters theft attempts. Have an office or at least an area where you or your manager can get an overlooking view of the entire warehouse floor. If you have the budget, invest in technology that allows the management team to monitor tasks, employee activity and interactions, track order statuses and others. Choose one that your team can use remotely.
Communicate Policies about Theft
Reduce theft along your supply chain management process by communicating company policies. Make warehouse employees aware that your company has zero tolerance regarding theft. Make rules clear in company-wide emails and documents. Mention penalties whenever an employee violates the rules. Provide staff with channels where they can report suspicious behaviour. This approach deters employees or anyone in the supply chain from stealing or committing fraud.
Improve Security Systems and Processes
As your warehouse operations increase, the more you should improve its security. Invest in equipment such as CCTV cameras, digital locks, security mirrors and others. Cameras in different parts of your warehouse provide additional “eyes” that allow you to monitor and record all activities in them. Security mirrors improve visibility in some of the corners and blind spots of a facility. Digital locks limit access to expensive inventory. Determine which pieces of equipment are within your budget so that you can allocate resources for them.
Implement Cycle Counting
This method makes sure that your inventory count is accurate. When you implement this approach, your team frequently checks the numbers of your inventory. They count small subsets of items stored in different parts of your warehouse on a regular basis, whether it’s daily or weekly. The schedule will be up to you. This enables you to identify discrepancies in inventory immediately. This then allows you to determine where and when the theft took place.
These practices allow you to identify and prevent theft along your supply chain management process. If you need small business accounting services, you can reach out to us at Robookkeeper. Our team can update your accounting books when you need it.