Lessons learned for profit protection and improved security

The rapid growth of distribution centres has created challenges for profit protection and loss prevention managers.

Theft from distribution centres is estimated to account for up to 6% of theft-related losses. In the UK alone, theft losses from distribution centres are estimated at £1.7 billion.

Employee screening technology for distribution centres is available to address this problem. But how can distribution centre managers also balance profit protection, employee management concerns, and day-to-day sales and operations? To be effective, any employee screening technology implemented must account for these real-world concerns.

From our experience of helping top UK and European DC managers, we believe that with careful planning and the right technology, it is possible to protect profits while maintaining productivity and employee morale.

4 key lessons for implementing effective employee screening technology in distribution centres

Lesson 1: Employee screening technology must generate real world return on investment (ROI)

Earlier this year we helped a leading retailer to redesign their staff exit process, leading to an 80% reduction in their direct distribution centre losses and a 5 year profit protection ROI of over £29M.

Lesson 2: Employee screening technology must have near-zero impact on distribution centre operations

Typical employee security screening technology, which uses wands or metal detectors during entry and exit times often negatively impacts employee morale and productivity. Employees must remove all personal items before security wanding / metal detection to avoid false alarms or a time-consuming and physically intrusive secondary pat down search. This is an additional drawback for metal detectors and wands which are, of course, limited to detecting metal items only. Their detection sensitivity is often turned down, rendering them ineffective.

Lesson 3: Employee screening technology must address employee privacy and other HR concerns

A distribution centre workforce is often comprised of unionised workers, contractors and indirect labour, with a range of language capabilities. They will often view changes in screening processes with scepticism or even hostility. It’s critical that a new employee screening process and technology take these realities into account.

Lesson 4: Employee screening technology must have proven performance

When selecting employee screening technology for a fast-paced distribution centre, it is essential to use a globally deployed solution, with established customer references. Our screening technology has gained acceptance and support from leading retailers worldwide.

To read more about how the right employee screening technology can help to improve profit protection in any distribution centre environment, download our whitepaper here.