Pilferage

Definition

Pilferage is the theft or unauthorized removal of small items or quantities of goods from a shipment, warehouse, or retail store. It is a common issue faced by businesses involved in the storage and transportation of goods. Pilferage can lead to financial losses for companies, disrupt the supply chain, and harm customer relations due to incomplete or damaged shipments.

— sennder Team

FAQ

What is pilferage?

Pilferage refers to the theft or unauthorized removal of small items or quantities of goods from a shipment, warehouse, or retail store.

How does pilferage affect businesses?

Pilferage can lead to financial losses, supply chain disruptions, and damaged customer relations due to incomplete or damaged shipments.

At which stages of the supply chain can pilferage occur?

Pilferage can occur during loading, unloading, storage, and transit of goods.

Who can be responsible for pilferage?

Pilferage can be committed by employees, contractors, or external criminals.

How can businesses minimize the risk of pilferage?

To minimize the risk of pilferage, businesses can implement security measures and loss prevention strategies, such as inventory control systems, surveillance, access controls, and employee training.

Example or usage in road freight logistics

A logistics company discovers that several shipments have been delivered with missing or damaged items. After investigating the issue, they determine that pilferage is occurring during the loading and unloading process at one of their warehouses. To address the problem, the company increases security measures by installing surveillance cameras, implementing stricter access controls, and providing additional training to employees on loss prevention strategies.