How to Keep Freight From Walking Out the Door

Q: Every year, around this time, our claims based on freight pilferage go way up. What can we do to stop it?

A: Cargo theft jumps markedly around November and December, not coincidentally when freight levels rise and people feel “needy.” Rarely are these random acts: thieves know exactly what they’re taking and where the freight is going to be parked or stacked.

How do they know? Often there’s an individual inside the company who may be feeding information out to them and others.

A lot of employers are surprised to hear that, because they’ve bought into any number of myths about theft and their workers: that honest and loyal employees will report others who are stealing, that seemingly happy or well-paid workers are less likely to steal, that senior employees are more honest (they’ve been around the block and know how to work the system), and so on.

The reality is that workers will steal to the degree that your system allows. They may do it because they feel the company owes it to them; that management does not care about theft because the inventory-management system creates gaping opportunities for theft; or that the company makes it easy to steal because there is not set policy against it.

And they’re confident they won’t be reported by other workers because of that “snitch” attitude in the workplace that unfortunately so often prevails over honesty.

If you want to prevent theft around your docks, warehouses, and terminal yards, here are some points to ponder:

o Start by conducting a security audit of your operations. It’s a two-step process: first, consider the areas on your property where you’re most vulnerable-unsecured areas, fencelines that run along railroad tracks or are obscured from view, even your receptionist. You’d be surprised how easy it is to wander past the front desk with a wave and an, “Oh, I’m here to see so-and-so”: receptionists are rarely included in security matters.

Next, review and formalize the practices of your security guards. How often do they physically check each unsecured area? How do they track people, equipment, and shipments moving in and out of your terminal?

o Look for goods that aren’t where they’re supposed to be: near exits, in washrooms or dumpsters-places where they can easily walk out the door. Beware of key employees who refuse to take even minimal vacation (fearing that a disruption in their “system” will expose their activities); inappropriate photocopies (of manifests of loads coming and going, for example); or deviations from normal shipping and receiving practice.

o Develop a written company policy against cargo theft. It doesn’t have to be complex or full of legalese, nor should it sound accusatory and confrontational. But it must clearly state the company’s position against it and define consequences that are fair. Verify that every worker has read the policy, and take time to answer their questions.

o Communicate negative impacts of theft. It takes about $20 of sales to offset every dollar lost to theft. Employees need to know how that affects them: additional claims-or worse, lost business-may rob workers of pay increases or profit-based bonuses at the end of the year.

o Solicit input and support from your employees. Tell them when you suspect theft in your shop. Put in an anonymous tip program: people will rat out the bad guys-given the opportunity to rat without anyone knowing.