fastlane
An ounce of prevention …
CONVENTIONAL WISDOM HOLDS THAT CARGO IS MOST
vulnerable to theft when it’s on the road, which is why so many security protocols focus on trucks and other vehicles. But lately we’ve seen an
uptick in cargo thefts—including the disappearance of entire trailer
loads—on distribution center property. In some instances, the thefts
have occurred at what were thought to be secure facilities. In others,
however, they took place at warehouses that hadn’t bothered to take
even basic security precautions.
Securing a distribution center can be both difficult and expensive.
But failure to take precautions is nothing short of reckless, particularly if the company is a logistics service provider and is responsible
for property belonging to others. While no manager can totally eliminate the risks to a facility, its contents, and its
employees, there are steps he or she can take to
minimize risk.
Security begins at the property line. Ideally, a
distribution center will be completely surrounded
by a fence, with guard service to check all vehicles
and persons entering and leaving the property.
When this isn’t possible, there should be adequate
lighting and a network of closed-circuit television
cameras that provide a clear view of the perimeter
of all buildings. Cameras should be monitored 24
hours a day, seven days a week. Parking against the
building should be prohibited except in the receiving and shipping areas to ensure lines of sight aren’t blocked.
When there is no guard, every vehicle or person entering the property should be required to check in with a live person or at the very
least, be recorded by a video monitoring system. It’s important that
these individuals be seen (or filmed), not just heard.
Security experts often recommend using closed-circuit cameras
inside the facility as well. Beyond that, all building doors, including
those to the offices, should be locked. There are any number of key
card and PIN number systems that will ensure that only authorized
persons enter the building. Truck drivers and other visitors should be
allowed to enter only through a specific set of doors that open into a
confined area. Once inside, they should be registered and then given
only limited access to the facility.
Receiving or shipping doors should never be left open without an
appropriate distribution center employee on hand. If the facility
handles products that are unusually expensive or particularly vulnerable to theft, these items should be secured in caged areas within
the building with access carefully monitored.
Securing a facility against outside intruders is
relatively easy compared with protecting a facility from the enemy within. Forty percent of all
warehouse thefts are committed by employees.
To cut down on the risk, DCs should follow a
rigorous screening process for prospective
employees. A surprising number of companies
do not run background checks because of the
expense. Yet the cost is likely to be negligible
compared with the financial consequences of
even a single incidence of larceny.
In addition to a background check, every
prospective employee should
be tested for drug use. And in
today’s environment, integrity testing is strongly recommended as well. These tests,
which are in compliance with
federal and state discrimination laws, screen for honesty,
attitudes toward customer
service, risk of drug and alcohol use, and more.
In addition, managers
should be trained to recognize unusual behaviors that might signal that
something’s amiss. Deterioration in attendance, work habits, and personal relationships
are all warning signs and should be dealt with
appropriately.
Bottom line: There is no fail-safe method for
protecting property, products, and personnel.
But a well-implemented and -managed security
program, thoughtful and careful hiring practices, good management training, and common
sense will go a long way toward minimizing
risks.
Clifford F. Lynch is principal of C.F. Lynch & Associates, a
provider of logistics management advisory services, and author of
Logistics Outsourcing – A Management Guide and co-author of The
Role of Transportation in the Supply Chain. He can be reached at
cliff@cflynch.com.
