Protect your assets: a guide to warehouse security systems

Common warehouse security risks

Warehouses can be complex environments filled with valuable assets and equipment, making addressing security issues a challenge. While implementing warehouse security solutions like CCTV technology, locks and alarms will help protect assets from criminals, understanding common risks will help teams configure systems appropriately. 

Inventory shrinkage 

Inventory shrinkage refers to any loss of inventory that’s not accounted for, including losses related to damage, operational errors, theft and vendor fraud. The impacts of this risk can be measured by comparing inventory records to actual stock levels, but this can be difficult and time-consuming in larger facilities. Shrinkage rates over 2% indicate a serious security issue.

Internal theft

Internal theft involves employees with intimate knowledge of a facility intentionally stealing company assets or data for their gain. One study found as many as 75% of employees admit to stealing from employers at least once during their time with a company.

External theft 

External theft concerns acts of theft committed by persons without affiliation to the targeted company. External theft accounted for 36% of total loss events in the retail sector during 2023, with unsecured warehouses being a prime target for theft by organized criminal gangs.

Cargo theft

Cargo theft refers to stealing valuable assets and raw materials from commercial shipments, including those in transit and those contained in storage facilities. Cargo theft is estimated to cost the U.S. between $15-$30 billion per year, with 26% of cargo thefts known to occur at cargo facilities such as warehouses, storage facilities and distribution centers.

Vandalism

As warehouses are often situated in low-traffic areas, they can be a popular target for vandalism. The presence of warehouse security cameras and physical security guards can help deter vandalism by demonstrating that sites are being monitored at all times. 

Cyber-attacks

Alongside valuable physical assets, warehouses often contain large amounts of sensitive data like financial information, client details and employee records. Warehouse security devices like cameras and access systems can also be vulnerable to cyber-attacks if they’re not properly-secured, breaches of which could expose facilities to physical security threats.

8 methods for improving warehouse security 

No matter the size or scope of a facility, all warehouses are vulnerable to security breaches. Saleable goods, machinery, vehicles and even company data can all be sold by criminals for a profit, meaning warehouse security must be considered a top priority. To help deter and address common threats, consider pursuing the following warehouse security best practices.

1. Implement perimeter security measures

Environmental and technological warehouse security measures positioned outside active facilities are the first defense against criminal activity. Should an intruder see evidence of warehouse security systems before attempting to commit a crime, they’ll likely think twice about proceeding, and the harder it is to access a site, the less attractive it will be as a target.

A secure warehousing facility will be surrounded by fences positioned to restrict access only to one or two entry points, with bright lighting used at night to remove areas of cover. Teams should also install warehouse security cameras around the perimeter to provide coverage of key areas and act as a visible deterrent by advertising active security systems.

2. Secure entrances using access controls

Access control security for warehouses should begin at all vehicular entrances, with barriers and some credential-reading system in place. Warehouse security guards should be stationed at access points and asked to oversee access requests, with token-based access readers and ALPR cameras used to help ensure that only authorized vehicles are granted entry.

Access to the main facility should also be locked behind traceable credentials, with systems in place to grant temporary access to authorized guests. Mobile credentials can be beneficial here, enabling warehouse security teams to issue personalized credentials directly to users’ smartphones, with high-risk internal areas locked behind further keycard and biometric locks. 

3. Develop robust video security solutions

Video security cameras that cover entrances, exits and high-risk locations provide security teams a holistic view of unfolding threats and act as a visible crime deterrent. Secure warehouse storage centers will utilize multiple types of CCTV cameras capable of securing high-quality footage in different conditions, with feeds viewable via a unified control platform. 

Effective warehouse security cameras will be robust and feature hard-wearing weather and impact-resistant cases to protect against accidental and intentional damage. Cameras with night vision capabilities should be used to secure footage of outdoor areas ²⁴⁄₇, with active devices linked to a cloud management system to enable live alerts and remote accessibility.

4. Install warehouse security alarm systems

Bespoke arrays of sensors and alarms can help to improve safety and security in warehouse environments. Audible alarms can be installed to cover primary access points, entrances to storage areas and other high-risk areas, with systems linked to motion, sound and pressure sensors configured to activate alarms and alert security teams to the presence of intruders.

Warehouse security systems may also contain silent alarms to cover high-security internal areas like offices, stock rooms and vehicle storage areas. Once triggered, security staff and local authorities are notified and sent instant requests to respond, with options to view nearby camera feeds and activate relevant access locks to perform quick responses.

5. Hire and train physical security personnel

Warehouse security systems will only be truly effective if managed and operated by trained security professionals. Warehouse security management teams should have access to all active devices continuously, with personnel able to view and analyze security data associated with cameras, access systems and alarms via a secure management portal.

Physical warehouse security personnel should also be stationed at access points to oversee entry requests and act as a physical deterrent to would-be intruders. When the warehouse is closed, trained security guards should perform on-site patrols, with live alerts from cameras and sensors used to inform patrol routes and real-time incident responses.

6. Use sensors and analytics to track assets

Specially designed environmental sensors and analytics software can be deployed inside stock rooms and storage areas to improve inventory control. Motion sensors and AI-powered security cameras equipped with video analytics software can continuously monitor items in storage, alerting staff to suspicious activities and activating integrated alarms in response.

Employees may also leverage RFID tags and scanners to register inventory as items enter or leave the facility. Scanners can automatically register stock as items pass through secure facilities, with warehouse and distribution center security systems integrated into inventory management software to help staff identify potential shrinkage issues quickly and efficiently. 

7. Perform thorough background checks when hiring staff

Alongside mitigating external threats, warehouse security measures should be adapted to limit risks associated with internal theft. When hiring new employees, it’s imperative that management teams perform thorough background checks to help highlight any potential issues or causes for concern associated with a candidate’s previous roles or experiences.

A thorough warehouse security background check will include reviews of the candidate’s criminal history, driving record and previous employment, as well as contact to prior employers where possible. Management and warehouse security teams may also trace the applicant’s social security number to check that no inconsistencies exist.

8. Protect data using cybersecurity technologies

Developing systems to protect sensitive financial, employee and security data is another important aspect of warehouse security. Using digital security cameras, access systems and alarms linked to a remote-access cloud-based management system provides numerous benefits in terms of security monitoring, but communications must be protected. 

Cybersecurity tools like encryption, endpoint detection and response and firewall software will help to prevent hackers from intercepting sensitive security data that could be used to inform about physical security breaches. Access to digital file storage and security management platforms must also be locked behind digital access controls to improve warehouse security.

Elevating warehouse security with Pelco’s solutions

With a broad range of security cameras and devices, Pelco solutions are suitable for any environment, including warehouse security. While advanced video security systems deliver crystal-clear images, even in challenging lighting conditions, intelligent analytics proactively detect and deter potential threats, such as unauthorized access, suspicious activity and theft.

Built on an open platform, Pelco solutions integrate seamlessly with access control systems, perimeter protection and intrusion detection technologies to create a multi-layered security approach. Video management software provides centralized control and real-time monitoring, enabling security teams to respond swiftly and effectively to any incident. This comprehensive approach safeguards warehouse operations, minimizes risks and maximizes peace of mind.

Complete warehouse security checklist 

To help facility owners, managers, and warehouse security teams implement the above best practices and evaluate existing security measures, a complete warehouse security checklist is below. 

Perimeter security measures

• Check perimeter fences are at least 7ft tall with no gaps or signs of damage.
• Use time-based lighting to ensure all areas around the property are lit at night.
• Restrict site access only to one or two entry points operated by security guards.
• Implement access control barriers to restrict vehicular access to the facility.
• Deploy ALPR cameras to detect, monitor and analyze approaching vehicles.
• Install warehouse security cameras to cover all actual and potential entry points.

Access control provisions

• Ensure vehicular access control measures are implemented at all entry points.
• Check all actual and potential egresses are secured behind lockable security doors.
• Implement token-based access control systems to restrict main facility access.
• Implement a visitor management system to grant temporary access to guests.
• Lock high-risk internal areas behind multi-factor credentials (biometric, mobile, etc.).
• Use access control models to grant permissions based on roles and seniority.
• Regularly inspect access control hardware for signs of tampering and damage.
• Ensure all warehouse security access control software is regularly updated. 
• Have systems in place to review, manage and organize records of access events.
• Have systems in place to ensure all old and unused credentials are deactivated.

Video security technologies

• Perform a security audit to identify appropriate positions for security cameras.
• Ensure all warehouse security cameras are inaccessible to the general public.
• Check all cameras are operational and that all hardware is free from damage.
• Check that live security camera feeds can be accessed by relevant security staff.
• Make sure recorded surveillance footage is appropriately stored and managed.
• Leverage video analytics software to automatically identify suspicious behaviors. 
• Make sure warehouse security camera software solutions are regularly updated. 

Sensors and alarm systems

• Ensure active alarm systems cover all main and internal access points.
• Ensure relevant security staff receive real-time alerts warning of triggered alarms.
• Integrate motion, sound and pressure sensors into warehouse alarm systems.
• Regularly inspect sensor and alarm hardware for signs or tampering and damage.
• Integrate alarms and access locks to enable automated lockdown functions.
• Liaise with local authorities to implement police and emergency response alarms.

Warehouse security management 

• Ensure security staff have on-site CCTV control rooms from which to monitor security feeds.
• Utilize cloud management systems to provide teams with remote access to security feeds.
• Pursue integrations between security devices to support automated event responses.
• Ensure security staff regularly review security data to support ongoing improvements.
• Hold regular meetings with all employees to discuss security risks and best practices.
• Provide regular security training to all employees to create a security-focused culture.

Communication capabilities

• Establish secure methods of communication between security personnel on duty.
• Check all communication systems and devices are up-to-date and working properly.
• Check all relevant personnel know how to use communication systems appropriately.
• Check all communication networks are secure and protected against cyber threats.
• Establish keywords and gestures to help communicate threats in high-risk situations.
• Form a working relationship between warehouse security teams and local authorities.

Evacuation and response plans

• Ensure emergency egresses are present, clearly labeled and free from obstructions.
• Ensure all staff safely respond to lockdown situations and active threats.
• Establish evacuation plans and meeting points for staff in an emergency.
• Establish a process for contacting emergency responders and local authorities.
• Regularly perform training exercises and drills covering common security incidents.
• Regularly update and revise response plans to cover new technologies and threats.

Conclusion

Warehouses, fulfillment centers and distribution facilities face numerous internal and external security threats, many of which can be difficult to address without technological support. To help ensure people, property and assets are reliably protected, facility owners and operators must commit to developing and continually optimizing warehouse security systems.

Effective installations will be designed to address common risks like inventory shrinkage, theft, vandalism and cyber-attacks, with advanced security technologies deployed to support incident responses. Through a combination of warehouse security cameras, access systems, alarms and sensors security staff can reliably and effectively improve warehouse security outcomes.