Context of the phenomenon in warehouse fraud
During the closing of the fiscal year, which for many companies takes place on December 31 of each year, the problem of inventories (stock) arises, their value and shortages related to possible fraud.
We will see below a short list of best practices to contain the phenomena related to inventory shortages and, above all, how to prevent such phenomena.
Managing stocks in an informed and safe way means knowing what you own, where it is located (internal warehouses, external warehouses or goods in transit) and the correct value, therefore clear tracking and accounting registration is essential. High-value and easily transportable goods, because they are small in size, or do not bear the company logo, are easy to sell and therefore particularly at risk.
Thieves and shoplifters
A thief who enters the company premises from the outside is a real threat.
In this case it is necessary to check the safety around the premises to minimize the risk. In a shop, thieves can organize into multiple people to steal, some provide a distraction while others steal the goods. Employees must be taught to be attentive and to recognize behaviors of this type.
It is necessary to establish a clear policy and make sure that staff are trained to recognize when such illegal phenomena are about to occur.
Protect the warehouse
Above all the protection of the goods contained in the warehouse represents a fraud prevention activity that must be managed according to clear and simple rules.
The following are the main indications:
- Identify and mark expensive portable equipment (such as computers). If possible, equip valuable inventory with security tags, such as radio frequency identification tags, which will sound an alarm if moved;
- Do not leave goods and equipment unattended after delivery. It is necessary to stow and place them in safe places, register the goods receipt. It is useful to dispose of the packaging safely: leaving the boxes in sight could be a call to the bad guys;
- Regularly carry out inter-annual inventories;
- Install cameras (CCTV) in perimeter walls, parking lots and other key locations.
Theft by internal staff
Employee theft is a problem. To avoid this it is necessary to proceed according to these guidelines:
- Train personnel on safety systems and company regulations, disciplinary policies and procedures;
- Train the staff on the economic damage suffered by the company in the case of warehouse thefts by employees and the possible risk of maintaining the job;
- Establish procedures to prevent theft. For instance personnel with economic / financial responsibilities should not be responsible for inventory accounting.
- Restrict access to warehouses to authorized personnel only, and to cabinets containing goods and equipment;
- Change inventory staff regularly to avoid collusion or bad practices.
Stock control management
There are many administrative tasks associated with stock control. Depending on the size and complexity of the business, they can be carried out as part of the functions of an administrator or by a dedicated Stock Controller.
For all cases in which you want investigative advice aimed at analyzing stock shortages and how to manage this phenomenon, do not hesitate to contact Michael Slim International and we will be happy to help you.
