HOW TO PREVENT INVENTORY LOSS OR THEFT IN WAREHOUSES.

1. Implement functionable internal control procedures and standards to curb theft and fraud for example use of CCTV cameras in both production areas and marshalling area.
2. Limit access to the warehouses i.e., ensure only authorized staffs access where products are stored and have sign in and sign out and discourage use of personal bags in the premises.
3. Ensure bin cards and inventory systems are always up to date to easily track stock movements for example use of batch numbers for tracking purposes.
4. Ensure you employ competent security personnel and have in house informative briefings on their expectations and have incentives plan or motivation to the security personnel if they catch a thief.
5. Minimizes storage of the raw materials on the production areas and produce as per the demand. i.e., discourage overstocking and overproduction.
6. Implement transparent employment processes which emphasis on merit and have background checks such as good conduct certificate. i.e. During the hiring process, a business must screen all applicants for criminal records or other red flags.
7. Introduce proper production records and utilization of the ERP to capture all products produced, wastages and work in progress and discourage overproduction.
8. Provision of capacity building and trainings on the staffs such as professional ethics trainings thus empowering the staffs through informative measures.
9. Pay staffs standardized salaries through job grading and introduce bonuses, incentives for Zero stock variance.
10. Regular stock takes after every intake, dispatch or disposal and account for discrepancies. i.e., Cycle counts and Spot checks on daily,weekly, Mid-month and end month closure.
11. Keep records of donations, promotions, returns and disposals since this is the major loophole for inventory loss thus ensure you have quarantine store for disposal.
12. Proper documentations such as Invoices, delivery notes and LPO to ensure matching.
13. Restrict storage of products near the dispatch bays. These can be stolen without you noticing.
14. Regularly inventory auditing and especially the slow-moving inventories with proper tagging/labelling.
15. Have a centralized warehouse store to avoid loss of inventory during inter- warehouse transfers 16.Never process requisitions which are not stamped or authorized by user departments and the finance office and also discourage issuances of goods on Lunch breaks and closing hours, someone staffs may take the advantages.