Preparation for the Christmas season is set to add strain to the warehouse and distribution sector according to figures released by internet retail body Imrg.
Distribution centres are expected to send more than 860 million parcels to British homes in the coming weeks, but with vast stock movement comes increased risk.
Here Sebastian Sharpe, Business Development Manager at Cordant Services explains how you can maintain your company’s integrity by reducing stock loss.
During the busiest shopping time of the year the warehouse and distribution sector is susceptible to substantial loss. Theft and shrink are a key challenge in distribution centres due to seasonal influxes of casual staff who may be tempted by the large amounts of easily accessible stock stored on site.
A lack of focus on employee vetting and training could be a major factor in controlling inventory shrinkage.
Pre-employment screening should be an essential part of the recruitment process. Background checks are the simplest way to reduce risk before placing an individual - giving you the reassurance that the new addition to your team is honest and trustworthy.
The BS7858:2012 Code of Practice, which should be implemented across all businesses, insists that employees are screened within the first 12 weeks of employment.
Fraud by employees can cost a business millions each year and could be avoided with the correct vetting procedure.
For those who make it through the vetting process, training is the next vital stage in their development. Cordant Security has identified that sector specific training for facilities staff can reduce stock loss by up to 70%.
Training by Cordant, for example the BTEC Level 2 in Criminal Law we offer to staff, highlights the key challenges employees should focus on to reduce shrink, and our regular toolbox talks ensure that staff are knowledgeable and kept up-to-date on key trends and changes.
With the support of a facilities partner and a dedicated management team areas of risk can be highlighted, methods of control can be implemented and shrink levels monitored.
Shared profit incentives with Facilities Management Companies will drive performance - yielding the best value and results, and risk performance goals such as audit programs and loss reports can ensure visibility of targeted items and associated costs.
With large quantities of enticing stock moving quickly around distribution centres over the coming months shrinkage prevention is a key objective for companies.
In order to focus on the core business strategy the pressures of shrink management should be passed to a strategic partner, trusted supplier and dedicated sector management team - who can concentrate their efforts and expertise on combating profit loss.