Businesses nationwide seek effective strategies to prevent warehouse theft. The rising price of goods puts companies at risk of significant losses, and warehouse theft has broad implications for businesses and consumers alike.
Thieves continue to find increasingly creative ways to access cargo stored in warehouses and distribution centers. It’s only a matter of time before your business becomes the next target. Despite the rise in cargo theft, you can take measures to secure your assets. Robust, layered security can prevent the financial ramifications of a security breach.
The Importance of Warehouse Theft Prevention
Cargo theft spiked over 57% in 2023 compared to 2022, and continues to rise. The average stolen shipment value in the first quarter of 2024 was $281,757, and 776 theft events were recorded in the third quarter. A single breach of your warehouse could have devastating consequences. Cargo theft costs businesses as much as $30 million annually as thieves develop innovative strategies that companies are not prepared for.
Many cargo thieves target warehouses and distribution centers. They can steal valuable goods and sell them online, for example. Everything is a potential target for thieves, especially in facilities with outdated or nonexistent security. With many moving parts and constant foot traffic, these properties are prone to both internal and external theft.
There has been an unprecedented evolution in cargo theft tactics, and thieves are adopting increasingly sophisticated methods to breach warehouse security. These thefts can have far-reaching consequences for your business and the industry overall. Supply chain disruptions and delivery delays can impact your profitability and reputation. You may also incur additional operating costs as you try to recover.
Criminals also endanger your employees. They could experience theft of their personal assets or even physical violence. Businesses can no longer afford to take a reactive stance on theft. Instead, a proactive and robust security plan is the only way to protect your assets.
The Financial Impact of Warehouse Theft
Warehouse theft means more than the loss of assets. It can impact the financial health of your business. Warehouses that are a victim of theft can experience a rise in insurance premiums. A single claim can raise your deductible, and repeated incidents could cause your insurer to drop your coverage entirely. Your business may also incur legal fees if you pursue recovery of stolen assets.
The loss of customer trust and supply chain disruptions can lead to decreased sales and long-term damage to your reputation. In essence, the financial burden of theft can far exceed the costs of implementing integrated security.
11 Tips for Better Warehouse Security
Warehouse theft represents a significant threat to businesses. A stand-alone solution is unlikely to provide the necessary protection in the current climate. Preventing warehouse theft requires robust security systems, processes, and physical barriers to eliminate external theft effectively. The following steps can help you take a proactive approach to warehouse security:
1. Evaluate Your Risks
The first step in enhancing your security is identifying weak points. Conducting a threat assessment on your property can identify weaknesses in your existing security plan. Threat assessments should cover the following aspects of your operation:
- Internal risks: Risks that originate inside your organization, like employee theft, infrastructure, and operational procedures.
- External risks: External risks include any dangers that originate outside your organization. Part of this risk assessment can involve surveying your risk environment, including crime data and local theft trends.
This assessment should also look at risks associated with training your team to provide a complete overview of where to focus your security efforts. This result is a customized and proactive approach to preventing and deterring theft.
2. Implement Access Control
Controlling access is a challenge in warehouses given the sheer number of people coming in and out. It’s easy to lose track of who’s supposed to be where, which can lead to theft. Access control systems allow you to manage and record who comes in and when.
Many warehouses are equipped with RFID tags to track people and goods as they move through. This data can help maintain security for your assets and employees. It also enables you to monitor individuals who shouldn’t be in certain areas. Depending on your budget and setup, you can opt for several access control options, including:
- Physical barriers: Your first line of defense is a physical barrier. They provide a deterrent while controlling pedestrian and vehicle entry.
- Role-based access control (RBAC): A RBAC system grants people access based on their roles. For example, only managers can access inventory areas.
- Identification tools: Credential readers, badges, IDs, and PIN codes can streamline entry and help you record entry and exit. They can also be used to implement an RBAC system.
- Electronic access systems: One challenge with access control is making it impossible for the wrong people to enter and making it easy for the right ones to do so. Electronic systems like key cards and scanners allow authorized personnel to move freely while providing a layer of security. You can also update these systems to maintain detailed records and reflect role changes.
3. Leverage Inventory Management Technology
Inventory management technology helps you document what items are coming and going. An effective inventory management system lets you uncover missing items faster. Enter every item into your system as it arrives and track it as it moves through. RFID tracking is proving particularly useful in conjunction with inventory management technology. Use unique identifiers for each item to help pinpoint which goods may have been involved in a theft.
You can also use RFID trackers to track stolen shipments of palletized goods when shipping and receiving them. These systems make inventory tracking more accurate. In turn, they make it easier to identify discrepancies. The more awareness you have over your inventory and workflows, the quicker you can act if something is amiss.
4. Invest in Proactive Property and Equipment Maintenance
Your security features must be reliable. You never know when thieves will strike. Any investment must be maintained regularly, or you risk failing at a critical time. If you have video surveillance systems, test them daily. Put a system in place to test every aspect of your security infrastructure, from your perimeter fence to your access control system. Train your team to be able to spot signs of tampering, as it could alert you to an ongoing security issue.
5. Design a Security Awareness Program for Employees
Preventing warehouse theft requires a team of people who are on the same page. A security awareness program and regular training create a proactive organizational culture. Your team must know how to operate physical security devices and computer systems to avoid security issues and promote safety in warehouse operations.
Integrate security checks into staff workflows, including processing, sending, receiving, and storage. Your security awareness program should stress the importance of on-site security. It must outline a process for reporting security incidents to sharpen your team’s threat detection capabilities. Training should also emphasize accurate inventory management. Employees who work with your warehouse management system (WMS) would also benefit from cybersecurity training to recognize the signs of malicious attacks.
6. Consider Hiring Security Personnel
Security guards can add an extra layer of security to your warehouse, especially after hours. Their physical presence is often enough to deter would-be criminals. They’re also trained to identify and handle suspicious activity. Many are licensed to carry weapons and can respond immediately to incidents since they’re already on-site. Their immediate action can minimize the potential damage caused by intruders.
Security guards are most valuable when used in conjunction with other security measures. They only offer a partial solution, and many businesses opt for integrated solutions instead.
7. Improve Interior and Exterior Lighting
In addition to illuminating your perimeter as an effective deterrent, it’s important to implement the right interior lighting. Improving your lighting promotes safety and security in the warehouse environment. When thieves have nowhere to conceal their activities, they cease altogether. High-quality warehouse lighting can deter or even help identify criminals when combined with other security strategies like video surveillance and access control.
You can also illuminate access points, parking lots, and dark areas outside your warehouse, leaving intruders with nowhere to hide. Floodlights are a versatile option that deters them from attempting access.
8. Choose Your Team Wisely
Even when theft is external, having a team you trust significantly affects your warehouse operations. Each employee’s approach to warehouse theft prevention can elevate your entire security posture. Making the right hires is crucial. Start with comprehensive background checks on each applicant. You can speak to their previous employers and look for criminal records to eliminate people who pose a threat.
Once you’ve hired someone, constantly check their performance. Assess performance weekly, narrowing your focus to those most likely to facilitate theft or neglect security protocols.
9. Implement Zoning Throughout Your Warehouse
Zoning is a layout strategy that involves splitting tasks into strict zones. You can separate each zone with physical barriers and access control systems. Zoning is ideal for the interior and exterior of your warehouse. Create distance between pick fences, storage areas, and cargo doors. Give visitors and drivers a separate rest zone so you have better insight into the operations on your premises.
You can also have separate parking areas for visitors. It prevents them from roaming your warehouse at will. Implement a zone in your cross-dock area and limit each worker to their area.
10. Start at the Perimeter
Effective security systems take a proactive approach, deterring thieves from attempting entry. Perimeter security is the bedrock of your defense. It keeps people off your property, stopping attempted breaches. Criminals look for easy targets — but electric fencing will make them think twice. Some electric fences are solar-powered so they stay on even during power outages, when most crime occurs.
Despite being an effective deterrent to opportunistic thieves, your electric perimeter fence must be medically safe through the use of pulsed electricity. A high-voltage pulse is sent through the wire at safe intervals. When someone touches it, they receive a safe but memorable shock — enough to deter them from further attempts. A professionally installed electric fence can form part of your integrated perimeter security solution.
Perimeter detection systems are an excellent addition to your warehouse security. They deploy detection sensors at critical points along the perimeter, alerting you if anyone enters the area. You can also add alarm-based security lights along your perimeter when your system picks up unauthorized activity. The built-in alarm triggers a rapid response, which activates the lighting system to illuminate the area. It ensures intruders are immediately visible, providing detection and deterrence.
11. Enhance Your Security Posture With a Layered Security Approach
A layered security strategy is based on the fact that a stand-alone approach is ineffective. It involves integrating different layers of security, delaying or deterring criminals in stages. There are four steps — detect, deter, respond, and mitigate. In a reality where criminals are increasingly creative, layered security offers distinct advantages, including:
- Safeguarding your employees, visitors, and assets
- Deterring intruders
- Reducing liability
- Enhancing business continuity
Enhancements you can add to your perimeter security include:
- Video surveillance: Commercial video surveillance is a deterrent and allows you to capture criminal activity in real time. You only need internet access to capture theft before it happens and alert law enforcement. In many states, video proof is required to dispatch police to your location.
- 24/7/365 remote video security monitoring: With remote video monitoring, you can view real-time camera footage from anywhere, staying proactive even when you’re not on-site. Cloud-based software and a mobile app for reviewing live feeds or recorded footage can increase the chances of identifying criminal activities. You can then send this surveillance footage to local law enforcement.
- Perimeter security solutions: Electric fencing inside your perimeter fence is an effective physical deterrent for intruders.
- Intrusion detection systems: After securing your property with an electric fencing solution, you can protect highly sensitive areas from unauthorized entry with intrusion detection. Wireless motion detection and door contacts enhance security inside the perimeter.
Protect Yourself from Warehouse Theft With AMAROK
Comprehensive security for warehouses is no longer optional — it’s non-negotiable. An integrated security approach is best to protect your employees and assets from criminals. AMAROK is an industry-leading, award-winning perimeter security solutions provider. After installation, 99% of our customers report no external theft.
The average AMAROK customer saves about $120,000 annually when they replace 24/7 security guards with our system. The Electric Guard Dog™ Fence is at the heart of our security strategy. Implement a layered security approach with FORTIFEYE™ — the country’s first fully integrated perimeter solution.
Our medically safe solutions are enough to deter even the most determined criminals. Find your perimeter security expert today or call us at (800) 432-6391, and see how you can stop warehouse theft in its tracks once and for all.
