Make your warehouse secure inside and outside

UK figures for the cost of warehouse theft are not easy to find, although data from the US and elsewhere indicate that such losses could run into thousands of millions of pounds annually. Figures from Australia show that what it euphemistically called “shrinkage”, or employee theft, may well account for up to half of all warehouse losses. What is not in doubt is that theft in all its forms is without doubt a significant factor in a sector where margins are under ever-increasing pressure.

Making life more difficult for miscreants need not cost the earth however, according to Steve Lamb from warehousing property specialist sbh, particularly if the right decisions are taken at the planning stage.

“High value raids on warehouses make the headlines, but those involved in the security industry see the insidious daily loss of goods from smaller scale operators - as well as internal theft by both staff and those on site for legitimate business - as equally corrosive.

While there is no sure 100% cure, there are a number of simple, often low cost steps that can be taken at the design stage that will help to make life far more difficult for anyone planning to steal from your business. Together with the use of modern security technology including strict access control and surveillance technology, they should prevent or strongly deter any criminal attacks on the business.

Security consultant Barry Vincent advises starting with a risk assessment, taking into account such factors as the type of products and stock to be held, the value of any assets and an evaluation of the surrounding physical environment. He adds that a useful guide to understanding high risk or vulnerable products is that they are likely to be similar to those that are stolen and contribute to shrinkage in the retail environment - such alcohol, small electrical and electronic items, batteries, razor blades and cosmetics.

Your motto should be ‘No Hiding Place’, making sure that there are as few places on the premises where activities can be carried out unobserved or unobtrusively. Most internal theft is likely to be opportunistic so the greater the evident risk of detection, the less the temptation will be.

Goods are at their most vulnerable when they are already on the move, which makes the goods receipt and dispatch areas prime targets. When planning the warehouse, make sure that these two key functions are well apart and do not provide an easy cross-docking function for thieves. Carefully placed security partitions will also help limit access to authorised and controlled staff.

If staff parking is close to the warehouse, it makes it far easier for stolen items to be quickly transferred between vehicles. Having to walk several minutes in the open on full view carrying stolen goods is a strong deterrent to most opportunist thieves.

Any social area where visitors and staff can mix freely, such as a canteen, should also be located well away from both goods receipt and dispatch areas, with access through controlled corridors and separated from the warehouse.

Most warehouses will have several access and exit points, but the more doors that allow free and unchecked movement in and out of the warehouse, the greater the risk. While fire exit doors need to comply with regulations, they should not be regarded as alternative entrances or exits and should be secure and alarmed.

Inside the warehouse, the layout of racking, shelving, offices and other facilities should avoid creating hidden corners and provide clean lines of sight for supervisors and others. Good lighting wherever staff are likely to be working or have access will likewise act as a deterrent.

By designing the facility to provide such first level deterrents, modern technology can be more effectively deployed. PWP Building Services, who operate a specialist Fire and Security Division and have worked with sbh on a number of warehousing projects, have considerable experience in the most suitable access and control technologies.
Established CCTV systems act as a major deterrent and enable staff to keep a watchful eye on key areas. There are a number of different types of CCTV devices including fixed, zoom and dome designs to provide both visual monitoring and image recording. Infrared cameras provide additional security at night.

As well as image recording, CCTV systems are increasingly being used for Number Plate Recognition in the warehouse and surrounding areas. Fibre optic power supply over an Ethernet means cameras can be located hundreds of metres away, far beyond the practical reach of traditional power cables.

Systems to detect and inhibit traditional external theft include beam detection, PIR sensors, ‘open or closed’ detectors for doors and windows and CCTV with the option of a link to motion sensors. Status monitoring systems recognise any activity or movement beyond pre-set limits and send a signal to any contact point – a remote PC, a mobile phone, a nominated key holder or the Police.

The innovative SmokeCloak® system releases an opaque but harmless fog to confuse the intruder and reduce the opportunities for theft or damage to virtually zero – and acts as a powerful deterrent to others. Its large vapour generating capacity makes it ideal for protecting large volume areas such as warehouses.

Prudent warehouse design and the use of the most suitable technology will without doubt contribute to a significant reduction in losses. However their value will be all the more impressive when backed by sound, professional and vigilant management. Simple steps such as walking round the warehouse unannounced at different times, insisting on a neat and tidy environment and taking a strong line on dishonesty will not cost a penny. Savings in lower “shrinkage “ and theft rates will go straight to the bottom line and may even mean the difference between profit and loss in these difficult times.”

August - 2008