Warehouses are, by definition, cavernous storage places for bulk goods and not intended for eye appeal. They are, by design remote and spacious, allowing for cheaper facilities than those in commercial or retail districts. Both these factors contribute significantly to the potential for loss through theft.
Many warehouses also lack modern security and technology features and are staffed at low levels.
They may house a variety of unrelated goods if the warehouse is a shared facility. They also have limited outside visibility (which, in turn, reduces risk of break-ins) and limited door egress, other than a couple of man-doors and a receiving area usually away from street traffic.
Warehouses may have low inventory turns and high dollar value of assets inside. Interior layout is designed for efficiency rather than loss prevention. Losses, because everything is in bulk and often in large containers, may go undetected for a year or so, when managers rely on case count rather occasional container inspection.
In the movie series, The Sticky, starring Margo Martindale and Jane Fionda, a bumbling security guard shows how easy it is to steal from poorly monitored bulk warehousing.
Open cases
Check shelves regularly, looking for open or resealed cases that likely are behind full cases. By concealing partial cases behind full stock, thieves can go undetected for prolonged periods.
FIFO
First In, First Out inventory management ensures the oldest product is rotated out of stock before it expires. However, stock that is not in rotation may be hiding missing or partial products.
Accuracy of content
To avoid detection, thieves may substitute low end goods in cases marked as higher priced. Look for swapped cases or cases that are disposed of in garbage without explanation.
Stack outs of goods in inappropriate locations
In order to create a secure location with obstructed view in which to conceal goods, employees may place pallets in improper places, in such a manner that they create a “fortress” wall obstructing direct or camera views.
Camera views
Employees who plan on stealing or relocating goods will watch cameras and move to areas that are not properly monitored.
Goods near exits
Look for goods that are out of place near exits, as this may indicate that a theft is about to occur and the product has been staged for removal.
Employee vehicles near remote exits
Check to see that employees are parking in assigned spots and not near exits. One employee of a grocery warehouse worked half days on Saturdays. When he arrived, he parked in his designated spot, but an hour or so before the end of his shift, he moved his vehicle to near a remote exit, where he loaded his truck with stolen merchandise in less than ten minutes. (He was the Saturday supervisor)
Items out of proper order in category
Items that are warehoused are placed in specific areas for easy identification and access. Items that are targeted for theft often are relocated to other areas, so that the high-end merchandise, which is often monitored, does not get flagged as at risk.