7 Effective Ways To Prevent Inventory Theft

prevention of inventory theft

prevent inventory theft

Theft is a universal phenomenon that we need to live with. As long as humans tread this Earth we would have the incidence of theft. There would always be ample unscrupulous individuals who would indulge in the criminal activity of theft. The locations do not matter thieves who see an opportunity would not think twice if they could take something illegally that belongs to another.

Inventory theft would usually happen in a business environment where stocks are stolen when the chance and opportunity is provided. It could happen due to negligence and carelessness on the part of the authorities who are tasked to prevent inventory theft.

#1. Tighten your warehouse security


Warehouses, stores and any other location where there are stocks belonging to the company, it is imperative that the security of the area is at optimum. No loopholes should be kept to allow criminals to pilfer and creep through it. Every exit and other vulnerable areas should be well secured. Half measures would not do, every aspect should be looked into and the appropriate action should be taken. Inventory theft should be eliminated failing which you should endeavor to reduce it.

The warehouse or retail store is the heart of any organization hence ensuring its protection is paramount. Inventory theft should be eliminated and if that is difficult it should be reduced.

#2. Appoint competent personnel

improve warehouse security

It is imperative that only competent staff is taken into your security network and other frontline positions. The head of the security network should be competent to handle any complex situation that would arise. He should also command the respect of everyone under him and also others in the organization. He should be tasked with the prevention of inventory theft.

#3. Screen employees

employee check

Every personnel should be thoroughly vetted and screened for possible past misdemeanors and ensure that they have no criminal records. This is a very fickle but very important endeavor because taking one bad apple in could upset your company’s apple cart. To reduce or eliminate inventory theft is a bit tricky because it would happen all the time but with prudent controls, it could be reduced quite drastically.

#4. Delegate areas and responsibilities

stop inventory theft

Whether it is a large or small warehouse it is imperative that staff is delegated specific areas. This would bestow responsibilities and also if there is any inventory theft it would be confined to that particular area only. Having them confined with responsibilities would ensure they take it very seriously and don’t involve themselves in illegal activities.

#5. Conduct random checks suddenly

perform random checks

Conduct random checks along with the staff responsible for the area which would show the progress in the control of inventory theft. The records and physical stock should tally and match perfectly and if they do not then something which could be inventory theft. Random checks should match the stocks in the record books with the physical stocks. Even if you have a perpetual inventory system manual checks would be needed at regular intervals.

#6. Motivate staff

motivate staff

Conduct regular staff training and keep the staff on high levels of motivation. This could effectively eliminate employee induced inventory theft which is common in many organizations. Motivation is a top priority if you are to ensure high productivity from your warehouse,

#7. Ensure retail activity is well secured

secure retail activity

If your business is in the retail then you would need to plug all the possible points of exits and entry so that you are not subjected to what is often referred to as inventory theft. The incidence of customer theft is increasing and businesses are losing millions worldwide. They are doing everything within their purview but still, there is much to be done.


Every business around the world encounter the same adverse issues hence learning from your earlier mistakes and correcting them is imperative. It may be difficult to totally eliminate inventory theft but the priority would be to reduce it with stringent controls. Inventory controls should be implemented at every point where there would be a risk factor. A risk assessment report would easily identify the areas that are vulnerable so that corrective action could be taken.

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