Warehouse
Warehouse
Security Tips
Security Tips
an e‐Book from RSI Insurance Brokers
to Help Prevent Cargo Loss
www.rsiinsurancebrokers.com/warehousesecurity
Chapter 1 – Inventory Protection Measures
Chapter 2 – Warehouse Layout For Better Security
Chapter 3 – Security Tips for Docks
Chapter 4 – Responsibilities of Management & Drivers
Chapter 5 - Available Technology
“Cargo
theft
is
an
ever
‐
increasing
problem
in
the
transportation
industry.
It's
estimated
that
cargo
theft
costs
shippers
and
trucking
companies
up
to
$30
billion
a
year
– and
it's
only
getting
worse.
A
recent
study
showed
the
frequency
of
cargo
theft
claims
is
increasing
13%
percent
per
year.”
‐
Sentry
Insurance
CHAPTER 1:
Inventory Protection Measures
VISUAL
HERE
With
people
in,
out
and
around
your
inventory,
it's
difficult
to protect
it
from
pilferage...but
there
are
ways.
Retailers have long understood that they have more to fear from dishonest
employees than they do shoplifters. In 2002, retailers lost over $15 billion to
employee theft and fraud. For your warehouse, the losses are almost entirely
internal; there are no customers to shoplift, and external thieves often work with
an employee to gain access or information.
The threat to your inventory and profitability is significant. It costs you in lost
inventory, higher insurance premiums, and personnel turnover.
A recent study at the University of Florida reveals that security managers attribute
more than 48 percent of theft to employees.
Hire
the
Right
People
It starts with hiring the right people—which is easier said than done. You can
reduce your risks with personnel steps like checking references and backgrounds
of your applicants. Look for felony records, especially for those you’re going to
trust with access to areas with highly desirable inventory. Even mundane
inventory will be pilfered at surprisingly high rates if you have the wrong people in
place.
Utilize
Warehouse
Equipment
that
Secures
Areas
Equipment solutions are possible, as well. You can look at such items as security
mirrors that give you visibility into closed areas, around corners, and into
hallways. Wire Partitions and Security Cages will tightly control access. You can
also limit access to an area with Folding Security Gates, if you need flexibility and
door coverage.
Lockable wire cabinets and lockers can provide pilferage deterrence and
protection in the right situation. There are other products that can lock a pallet
rack bay or a shelving unit down, allowing you to combine security and storage
into the same process.
Security‐focused storage equipment is not the sole answer, of course, but its role
is often understated.
Inventory Protection Measures
WAREHOUSE
SECURITY
TIPS
Monitor
and
Check
Frequently
Look toward your inventory monitoring
processes to also provide some relief.
If you know what inventory you have and
what you’re supposed to have at any given
point, identifying a source of theft is much
easier. If it goes on for weeks or months
before you know about it, the damage has
already been done and you probably won’t
recoup the losses. It’s best to check early
and often. For extreme cases, there are
companies that specialize in undercover operations and surveillance. You can find
many of them by searching Google or Yahoo under the term “warehouse security
system”.
Often, they will discover problems that undermine productivity as well as
pilferage. For instance, Florida‐based Internal Intelligence International discovered
a significant illegal drug selling operation in the plant of one of its clients. This is an
extreme measure, but if you need it, you need it.
Focus
Security
Systems
and
Processes
Internally
as
well
as
Externally
Sufficient monitoring systems should be considered for high‐risk areas, too.
Camera and surveillance systems are good, but something as simple and
inexpensive as unscheduled walk‐throughs are very effective theft deterrents.
Unpredictability is the key. Your information should be timely, but your walk
throughs in the warehouse should be something that you do frequently and without a fixed schedule. Watch your loading docks and platforms—they’re very
easy places for a thief to remove stolen property, often in partnership with an
outsider. Your security system is typically designed to protect your facility from
outside thieves. How much emphasis does it put on employee theft?
Read
and
Update
your
Knowledge
The U.S. Customs department has published warehouse security information for
companies dealing with Customs issues on its website. Many of its
recommendations are common sense, and apply to general warehousing as well as
One common‐sense recommendation is that you separate shipping docks from
employee parking lots, making it much more difficult to remove items from the
warehouse.
No single thing will reduce theft, but a combination of processes, hiring standards,
security systems, and equipment can combine to help you improve your operation
and eliminate losses associated with internal inventory pilferage.
WAREHOUSE
SECURITY
TIPS
WAREHOUSE SECURITY TIPS
For
more
information
to
help
you
prevent
cargo
theft
in
your
operation,
please
contact
a
Safety
Consultant
at
RSI
Insurance
Brokers.
We
also
encourage
you
to
visit
1:
Trash
Dumpsters
and
other
Containers
It's a poor idea to place a dumpster or other bins, large containers, scrap vessels, or
cans near an accessible door. They can become ideal places for thieves to stow stolen
inventory for later pickup and removal to cars. If you cannot position your dumpster in
a way that discourages thievery, consider making it lockable so that access is difficult to
unauthorized personnel, searching it frequently, and letting people know it is
monitored.
2:
Total
number
of
Doors
This warehouse has far too many doors. There should only be one that is open, and
there should be a guard or other employee in charge of watching this door. If fire
regulations require more than one door, use bars that set off an alarm if the doors are
opened. You can secure these doors with equipment such as folding security gates or
man‐trap cages if they are already in your facility (but be certain to follow all local fire
codes).
3:
Staging
Area
This staging area may be too close to the loading docks. If no one is around to keep an
eye out, it would be easy to take something and put it in a truck.
“Lay
out
your
warehouse
for
security:
how
your
warehouse
layout
can
deter
inventory
theft,
pilferage,
and
shrinkage.”
CHAPTER 2:
4:
Shipping
and
Receiving
Doors
The receiving dock and the shipping dock are too close together, and there is no barrier
between them. It would be easy to take things from one truck and put them into
another. Erect a barrier between the doors if they are in place already with easy cross‐
access between them.
5:
Employee
Parking
Lot
This parking area is too accessible to an
employees who might steal inventory.
The door is very close to the parking lot,
making it easy to take things from the
warehouse out to cars. It's best to have parking separated by a comfortable
distance from the warehouse doors,
making it more difficult to transport
pilfered items. Best case scenario is to
have a fence separating the warehouse from the parking lot, as well.
6:
Trucker's
Lounge,
Break
Room,
etc.
To get to this lounge area, the truckers have to walk all through the warehouse. Look at
the tracks (light blue arrows) to see where they might walk. Everything along these
routes is at risk. It is important to restrict movement in your warehouse. Don't let
people just go wherever they want. If possible, lay out your warehouse to move visitors
or guests to a lounge area without any access to inventory. If not, strictly instruct them
on where they are expected to walk through your facility (and make sure they stick to
it). Consider "man trap" dock area cages that let you admit truckers and other visitors
at your convenience, within your restrictions.
7:
Restroom
Location
This is a bad spot for the restroom. To reach it, the truckers have to walk through the
warehouse. This puts your goods at risk of being stolen. Just because people are
dropping off or picking up shipments doesn't mean they are free to wander around. It's
best to keep unauthorized people out of the warehouse, or within a strictly limited path
if they must be inside. There is usually no reason for someone other than your
employees to be in your shelving or storage racks with access to stored items.
WAREHOUSE
SECURITY
TIPS
8:
Bushes
and
Foliage
Bushes, shrubbery, and foliage are a
good hiding spot for things stolen
out of the warehouse, especially
when they are near a door. Remove
the bushes or lock the doors to cur‐
tail this avenue for thieves.
For
more
information
to
help
you
prevent
cargo
theft
in
your
operation,
please
contact
a
Safety
Consultant
at
RSI
Insurance
Brokers.
We
also
encourage
you
to
Avoiding Cargo Theft at the Point
of Loading & Unloading
$10
billion
a
year
is
stolen
at
shipping
&
receiving
docks
in
the
U.S.
How
can
you
protect
your
operations?
CHAPTER 3:
Cargo
theft
occurs
in
freight
forwarding
yards,
warehouses
and
during
transportation
in
trucks,
airfreight,
and
ships.
Worldwide, the direct cost of cargo theft
exceeds $30 billion annually and $10 billion in the
United States alone, with indirect costs many times
higher. On top of the cargo costs, losses are amplified
by double or more due to investigative and insurance
costs.
For a business operating on a just‐in‐time basis,
freight loss can be an extreme problem that
threatens profitability and viability. According to a
study done by the Australian Institute of Criminology,
87 percent of these losses are inflicted at the road transport level, where
warehousers, shippers, and receivers of goods are most at risk.
Almost any warehouse has something people want, although items such as
electronics, footwear, clothing, prescription drugs, computers, jewelry, tobacco,
and media such as DVD discs are especially coveted. But nearly anything can be at
risk.
The most common method employed to steal cargo involves a truck driver
working with a warehouse employee. Working together, these parties can easily
break a chain of awareness that shippers and receivers put into place and obscure
exactly when the theft may have occurred.
Cargo is at its greatest risk when it’s being loaded and unloaded. It can be carted
off while a driver’s attention is diverted. “Short” orders can be loaded, or loose
cargo can be concealed for later removal, according to the AIC report. This
timeframe is particularly chaotic, involving people who are mostly concerned with
getting the truck unloaded and away from the dock, not with security at any
conscious level.
Especially since the 2004 Hours of Service working rules change, warehouses and
distribution centers are more concerned than ever with the speed at which they
load or unload a truck. Unfortunately, this focus on loading speed also makes
What
can
you
do?
Experts say that besides being thorough in your hiring process—certainly
something you should do, but something that’s not bulletproof—there are several
common‐sense steps you can take.
Harden
the
Target
Restrict access to your shipping and receiving areas: This is the point of
vulnerability, where confusion and opportunity may meet and allow thieves an
opportunity. Be sure everyone in the area has proper identification and is
supposed to be there. It’s all about access: you need to control who has it and
who doesn’t. If the trucker isn’t involved in unloading, don’t let him loiter in the
area; consider providing a lounge area away from inventory and loading docks if
possible.
Secure
your
storage
areas
Utilize security partitions, cages, secure storage lockers, or mini security cages to
lock up things that are particularly desirable to thieves as quickly as possible when
they are received. Keep them locked up until you must unlock them before
shipping.
A number of available accessories can transform standard pallet racking and
shelving into secure areas that you can control. Move cargo from receiving into
these secure devices as soon as possible. On the shipping side, move it from them
into trucks in the same, quick manner. Don't let things sit around the dock doors
unattended and unlocked.
Make sure all doors and windows have locks. Going further, consider the reason a
particular door or window exists at all. When it isn’t being used for business
reasons or safety reasons, why keep it at all? You should consult safety experts in
advance of permanently sealing a door.
Get
involved
with
the
process
*
Hang around the docks: Nothing is more effective than being there,
watching, and participating. Go to the docks, talk to people, and make sure they
know you know who they are and what they’re doing. This doesn’t have to be an
onerous process; a friendly conversation works wonders. Criminals play a
percentage game. If the percentages shift, even a little, they may be deterred. This
is particularly true in the case of casual thieves who take easy pickings but shun
WAREHOUSE
SECURITY
TIPS
among the people at the docks. The presence of a watcher can help to do that and
make them wary for days.
* Make sure merchandise isn’t left unattended for long periods of time. It’s
folly to allow valuable inventory to stack up, unwatched, in the receiving
department. Get it loaded into stock whenever possible. For those periods when
you can’t load higher risk shipments into normal storage, look to solutions such as
portable, lockable security carts that can stow it away safely wherever it sits. This
works even in shipping operations, since you can have a trusted employee unlock
it when trucks arrive. If it’s palletized, shrink wrap it so that getting at it requires
more effort and more visibility.
* Use seals that are difficult to reseal once they’ve been broken: Such tools
as self‐voiding tape and water gum tape make it hard for thieves to hide what
they’ve done. If they break a carton seal, it’s visible. In the case of a trucker
working with a warehouse employee, this can be particularly effective.
* Consider electronic security systems and surveillance.You can monitor
movements in the warehouse using these tools. Your insurance company may
provide better rates to you if you have them, and they are great deterrence.
Simple tricks such as installing a dome mirror or an opaque camera dome may
deter some people. It lets them know that you’re paying attention.
In the end, nothing is foolproof, but a combination of common‐sense tactics,
equipment, and awareness can significantly cut your chance of losses. Consider
the way people steal cars: no thief can be stopped by a car alarm or steering
wheel attachment, but they may move on to cars that don’t have these devices.
Your efforts aren’t meant to create a totally secure environment—very little can
make that happen. Your shipping and receiving area should become a “hard
According
to
most
experts,
the
vast
majority
‐
possibly
as
much
as
85%
of
cargo
losses
can
be
attributed
to
employee
theft.
Cargo security generally centers on three specific areas: at the terminal, while in
transit, and at the destination. Since in‐transit hijackings account for only a small
percentage of cargo crime, clearly the key to reducing cargo losses is to focus on
the prevention of theft and pilferage at the terminal, during delivery of the
shipment, and while cargo is being unloaded at the destination.
This e‐Book provides practical measures that can be used to improve the security
provided to cargo. By establishing an effective security program that provides for
the accountability of cargo at all stages of its handling, substantial reductions can
be made in cargo crime losses. Information specific to hijacking prevention is not
CHAPTER 4:
Management
Responsibilities
•Implement a cargo security program
that includes written procedures for
the proper handling of cargo.
•Establish guidelines for the screening
and selection of employees.
•Maintain liaison with local, State, and
federal law enforcement agencies.
•Enclose the terminal with a perimeter
fence and, where practical, utilize a
fence alarm system.
•Maintain adequate nighttime lighting along the perimeter fencing, around
storage structures, and in all yard and parking areas.
•Install a central station burglar alarm system to protect the facility during the
closed period. The system should protect all buildings and high‐value cargo
enclosures, as well as yard storage areas.
•Equip all perimeter entrances with secure locking devices and establish an
effective key control program.
•Provide parking for employees and visitors outside the terminal enclosure.
•Require employees and visitors to enter and exit the terminal enclosure through
one monitored door or gate.
•Require that all parcels be declared upon entry to the facility and inspected upon
departure.
•Implement a badge identification system to regulate the movement of
employees and visitors, and require employees to display their badges at all times,
•Station guards at perimeter gates to inspect and manifest all cargo upon arrival
at or departure from the facility.
•Maintain a log of all cargo seals and store un‐issued seals in a secure place with
access limited only to authorized personnel.
•Store all high‐value cargo in cargo cages or other secure areas, and assign
•Identify high‐value cargo on bills of lading by code numbers or as general freight to
conceal its identity.
•Restrict access into storage areas only to those employees so authorized.
•Separate the shipping and receiving areas as much as possible.
•Supervise the shipping and receiving operations, and utilize closed circuit television
surveillance to deter pilferage.
•Implement a program of frequent, unannounced spot‐checks, or audits, of shipping
and receiving operations.
•Rotate cargo personnel onto different shifts and locations, as practical, to limit the
opportunity for collusion.
•Supervise trash disposal and salvage activities to prevent valuable items from being
concealed in trash containers for later retrieval.
•Use kingpin locks to secure loaded cargo trailers and maintain a record of their use.
•Devise a parking arrangement for loaded trailers to prevent easy, unauthorized
hook‐up.
•Install truck alarm systems that provide for 90‐day maintenance checks and keep a
record of all service.
•Provide high‐visibility identification for trailers (e.g., paint numbers on top for easy
identification from overhead.
•Provide good locks for securing trailers during multi‐stop deliveries.
•Select a reputable company when storing cargo in‐transit, and determine
beforehand that the storage location has adequate security.
Driver Responsibilities
•Inspect the integrity of cargo
seals on departure from the
terminal.
•Check operation of truck alarm
before departure from the terminal.
•Do not to discuss the nature of the
cargo with anyone.
•Establish a pre‐planned route to
the destination and deviate as
WAREHOUSE
SECURITY
TIPS
•Keep cab doors locked while driving, and do not to pick up hitchhikers.
•Park the truck in an area where it can be observed during relief or meal stops.
•Do not park loaded trailers in unlighted or remote areas.
•Remove keys from the ignition when leaving vehicle, roll up windows, and lock all
door and compartments.
•Log‐in with the dispatcher immediately upon arrival at a destination.
•Inspect cargo seals for tampering and compare seal numbers with shipping
documents.
•Oversee the unloading of cargo.
Cargo
theft
hurts
your
bottom
line
and
your
reputation
with
shippers.
By
developing
and
implementing
strong
countermeasures,
you
can
control
this
growing
hazard.
For more information to help you prevent cargo theft in
your operation, please contact a Safety Consultant at RSI
Insurance Brokers. We also encourage you to visit
www.rsiinsurancebrokers.com
CHAPTER 5:
Take
Advantage
of
Technology
When it makes sense, install alarm surveillance systems, and respond to every
alert. Ensure the perimeter, entrances, building doors and windows are well lit.
Vehicle and cargo tracking, vehicle immobilizers, including anti‐theft heavy duty
locking devices and advanced security seals, are now available at lower costs. No
matter what you purchase and install, combine it with a viable escalation and
response plan.
•Global Positioning System tracking is available for power units, trailers and cargo.
This technology helps law enforcement locate and recover both equipment and
cargo.
•Radio Frequency Integrated Circuits can be loaded in with the cargo to assist
authorities in recovering stolen cargo
•GeoFencing can be set up to notify dispatch when a unit leaves a preset course
•Systems are also available that allow dispatch to remotely disable a power unit if
