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5 Critical Protocols to Eliminate Inventory Pilferage in Manufacturing and Warehousing

S. M. Joshi (Head of Industrial Audits) September 15, 2026 4 min read
5 Critical Protocols to Eliminate Inventory Pilferage in Manufacturing and Warehousing
Industrial shrinkage and warehouse theft cost Indian manufacturers billions annually. In over 78% of audited cases, inventory leaks happen during regular operational hours via compromised loading docks, forged gate passes, and unmonitored employee egress. ### 5 Non-Negotiable Protocols 1. **Three-Way Gate Pass Reconciliation**: Inward and outward delivery challans must be reconciled digitally between the warehouse management software, gate log, and physical truck seal before boom barrier clearance. 2. **Random Egress Frisking**: Implement randomized biometric metal detector checkpoints for plant workers leaving production floors. 3. **Dual-Custody Lockout**: High-value inventory, copper wiring, brass scrap, and finished micro-components must require dual authorization to open. 4. **Perimeter Sensor Integration**: Thermal CCTV cameras along boundary walls with automated tripwire sirens to prevent night fence jumping. 5. **Surprise Night Audits by Flying Squads**: AAIRA operations managers conduct unannounced nocturnal inspections across factory premises.
S. M. Joshi (Head of Industrial Audits)
Advisory Board & Editorial Contributor, AAIRA Security Services

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