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Pilferage refers to the theft of small, often low-value items from a shipment or inventory, typically carried out by employees or others with access to the goods.
Pilferage is a significant issue in logistics and supply chain management, involving the unauthorized removal of goods during transit or storage. It typically occurs in warehouses, during shipping, or at ports, where it is difficult to detect and can accumulate over time. Pilferage may involve items that are small enough to go unnoticed but can result in substantial losses when repeated over time.
Pilferage works when small amounts of goods are taken by individuals with access to shipments or storage areas without being detected. This can impact your business by driving up replacement costs, increasing operational inefficiencies, and affecting your customer service.
Preventing pilferage through proper security measures, surveillance, and employee training helps reduce unnecessary expenses. By safeguarding your inventory, you can maintain consistent supply chain operations and ensure customer satisfaction.
Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.
Pilferage is important because it can lead to financial losses, supply chain disruptions, and damaged customer relationships. Shipping companies and warehouses must implement tight security and monitoring systems to prevent theft, as even small amounts of pilferage can add up and hurt the bottom line.
For example, if items are consistently pilfered from shipments, the cost of replacing lost goods and managing the theft can become significant, impacting profitability. In 3PL (third-party logistics), ensuring secure storage and transportation is key to maintaining service integrity and avoiding disruptions to customers’ operations.
