One hundred percent security is impossible

A simple truck tarpaulin often does not offer enough protection against theft. © BlackMediaHouse/stock.adobe.com

The fact is that major incidents can only be completely ruled out in theory, but not in practice. In reality, however, the probability of damage occurring can be reduced to an unavoidable minimum if site safety is an established function within the company. The requirements for maximum site security can only ever be assessed on the basis of the location in question. From a risk perspective, the storage location itself plays a key role, as the risk situation is different in every country, for example in terms of damage due to realized earthquake or flooding risks.

In many cases, the causes of major incidents are due to human error because existing safety equipment was not used, as the case above illustrates. This makes regular training in site safety all the more important, especially for new logistics employees.

Audits as a worthwhile precaution

In addition, every company in industry, trade and services should critically scrutinize its processes from time to time. Insights gained by the internal or external audit team can make a positive contribution to changes in the area of site safety. On the one hand, the audit team knows the documented target processes. On the other hand, audits help to determine the extent to which the processes are being implemented in practice, i.e. are being adhered to by staff. In practice, it often turns out that defined processes do not work or no longer work, which can have a negative impact on site safety and must be remedied in order to at least reduce the risk potential.

Sometimes it is unavoidable to leave loaded trucks on the factory premises at night or over the weekend. For criminals, this is often an invitation to theft if certain precautions are not taken. © Farida/stock.adobe.com

Practical example: If trucks have to be parked loaded at the warehouse location over the weekend, for example because they could not be unloaded by warehouse staff before the end of the working day due to delays, there should be a documented process for such events in order to ideally eliminate the risk of theft at the weekend. An effective process could be that in such a case, loaded trucks may only be parked on company premises that are monitored by cameras. The cameras should be connected to an external security company that sends a signal if people are present in this area during defined time windows.

The role of logistics real estate

Many industrial, retail and service companies do not have their own warehouse locations or have contractually subcontracted parts of their warehousing to third parties. This is often done for cost reasons based on the results of a make-or-buy decision by management. Companies that have decided to purchase logistics services should audit the location security of the service provider to rule out the possibility that the location is a risk location from a location security perspective.

In principle, the higher the value of the goods to be stored, the more important site security is. Every warehouse location should at least be fully fenced in, monitored by cameras and illuminated, and also have secure entrances and exits. An alarm system that integrates all doors and gates of the warehouse. In many cases, the involvement of an external security company is an important cornerstone in successfully preventing major damage caused by theft. The above points sound obvious, but the reality is often different.

Include insurance

The warehouse customer from industry, trade and services should always invite his insurer to inspect the warehouse. This approach has at least two advantages. Firstly, property and warehouse insurers have a lot of experience from which all parties involved can benefit: For example, pointing out existing deficits or opportunities for improvement. In addition, in the event of a major loss, the insurer cannot easily accuse the policyholder of having breached an obligation if the insurer had previously approved the warehouse location. In the event of a demonstrable breach of obligation, the policyholder runs the risk of losing cover or only receiving a certain proportion of the contractually agreed sum insured.

More security for logistics properties

If you pay attention to the six points on the following checklist, you can considerably increase the security of your company and have a good chance of receiving financial compensation in the event of damage:

- Site security is an important management task that requires a permanent focus, as the risk situation can change quickly and result in a major loss event.

• In many cases, major losses could have been avoided if functioning processes had been in place before the loss occurred, which often require no additional budget.
• Human error can trigger a major loss event. Regular training reduces this risk.
• Regular site audits and necessary measures reduce the site risk.

- Each storage location should be inspected by the insurer in order to virtually rule out any breach of obligation - before the claim occurs.

• Companies from industry, trade or the service sector that tighten their financial belts too tightly when it comes to site security run the risk of paying a higher price once the damage occurs.