How to Prevent Theft with Inventory Control Software

by Ava Thomas Content Creator

Businesses that have warehouse components tend to suffer through a huge amount of loss due to theft, causing inventory shrinkage. It can be difficult to point out whether inventory shrinks are due to theft, waste, or breakage. Regular stock takes can help identify theft since any suspicious shrinking levels of inventory will come into notice much faster.

Red flags of theft

There are certain signs that can indicate theft that you should keep an eye out for:

A dip in sales on days where certain staff members are on duty
Stock levels and sales records don’t match up
Certain members are avoiding taking their annual leave
Rumors of theft spreading in throughout the staff
Stock is found near loading bays or exits too often
Missing documentation or duplicates instead of originals

It’s extremely difficult to find the guilty party without catching them red-handed. Prevention is always better than cure, and hence, it’s easier to have proper security measures set up to help avoid theft entirely.

Look into any discrepancies as soon as you can. It can get harder to ascertain whether items that are missing have been stolen or lost over time.

Here’s how you can prevent theft in your business:

Background checks

While it may seem like a no-brainer, too many employers skip out on doing proper background checks before hiring new staff members. Beyond basic criminal records, numerous requirements may be part of a screening service. It all depends on the nature of your business and industry, the role that you’re hiring for, its place within the corporate hierarchy, and your level of risk tolerance.

Properly done background checks can ensure the fairness, consistency, and integrity of the hiring process. It benefits both the employer and the honest candidates who portray an honest picture of themselves during the hiring process.

Check with the candidate’s previous employers to find out why they left and how long they worked there for. Always trust your instincts; if someone’s credibility seems shady, then you shouldn’t hire them.

Educate your workers about company policy

Ensure that your staff is fully aware of your zero-tolerance policy for fraud or theft. Make them sign your company’s official code of conduct which provides a clear outline for punishments in case of violations.

You can also create channels for employees to report suspicious activities anonymously. Thieves might be deterred from stealing if they are aware that their colleagues are keeping an eye out, increasing their chances of being caught.

Don’t delay dealing with thefts

In case your business has recently experienced a theft, you should take immediate action. Take a look at who was on duty when the stuff went missing and identify a pattern correlating certain staff members and missing stock. Monitor their behavior and activity for anything suspicious, and investigate further if need be.

Install a robust security system

Installing CCTV cameras and other security systems can deter thieves while also providing evidence of their crimes through video records. Place these cameras in strategic positions in high-risk areas along with security mirrors to cover any blind spots.

Team leaders or managers can also take unplanned walkthroughs through the storage area as an extra deterrent.

Implement barcode inventory management software

Inaccurate inventory records can lead to your business becoming an easy target for theft. Having proper data for all the inventory that you have on hand can help you identify any stock that’s missing, reducing the chances of theft.

Keeping manual track of stock can lead to errors, especially with stock takes that are spaced too far apart. Keeping an automated system with barcodes can ensure that all your inventory is accounted for at all times.

If you need to help to prevent theft in your business, try out AltheaSuite! This ERP for inventory management allows you to log in from any device, anywhere at all. You can keep track of your stock at all times, with up-to-date information available on any smartphone device or PC.

We offer a wide variety of features such as POS software for furniture retailers, barcode inventory management software, and barcode inventory system for restaurants, home furnishing stores, wholesale businesses.

Contact now to book a demo!