Saturday, July 2, 2011

Pilferage. Have You Checked the Areas Around Your Factory or Warehouse?

I was the Operations Manager for a Canned Fruit National Distribution Center located in the outskirts of Metro Manila.

We have gotten reports that Bad Order and Good stocks were being sold at very low prices among our neighborhood.

Bad stocks sold as Good Stocks (courtesy of freewebs.com)
Bad Orders are stocks that were delivered to the Trade (mostly Supermarkets) and subsequently returned to us as damaged goods, expired, rat-bitten and the like. Sometimes these Bad Order goods have their original shipping carton still in good condition and in the case of expired goods, even the tin cans still look in good condition.  Dented cans  will still be purchased by people especially if they are sold at a big discount.

To check it out, I had my warehouse supervisor visit the residential houses surrounding our Finished Goods Distribution Center as well as our Bad Order warehouse and to pose as a potential buyer of these damaged goods.

On his return, he reported that it was like a Home Industry as several residents were openly displaying and offering for sale said Bad Order goods.  Pretending to be a buyer, he entered one such house and was shown stocks of our products.  Holding some of the more or less good-condition cans, he noticed that they bore code-dates with long expired dates!

Source of the Bad Order cans:

1.  After delivering to the supermarkets and picking up the said Bad Order goods, our company drivers are supposed to proceed immediately to the Bad Order Warehouse to unload said Bad Order goods but instead, they would park a distance from the warehouse and offer these Bad Order goods to the residents.

2.  There is also the possibility that after receiving these Bad Order goods at the warehouse but before condemning same into the disposal dump, the Bad Order warehouse personnel would bring out these Bad Order goods for resale.

3.  Scrap buyers of the tin cans (in connivance with warehouse personnel) do not crush the filled Bad Order cans but instead bring them out as is for resale.

What would Food Poisoning do to your Brand? (courtesy of healthmad.com)
So next time, conduct periodic checks of the residents surrounding your factory or distribution warehouse for any sign of illegal reselling of your Bad Order stocks.

Imagine if an innocent buyer purchase such goods without knowing that they are Bad Order goods and his/her family suffer food poisoning, they would sue your Company!!! How about a situation wherein because of such incidents, the government will compel your Company to recall all of your products from the supermarket shelves?  How about permanent damage to your Company's Brand????





By the way, I would like to invite you to visit my Sulit Homepage as there are some business opportunities that you guys might be able to help me out with.  If you are interested, just click the Sulit Logo below:

My Sulit Homepage

No comments:

Post a Comment