Inquest Global

AUDIT Case Study

A large logistics and distribution company ran five warehouses across Northern and Central India. Read More

We met the operations, warehouse, HR, IT and client-servicing teams to understand how goods, people and vehicles moved through each site, and where the highest-value inventory was stored and handled. Read More

Every site had security equipment in place, but the measures weren’t working together to manage the actual risks.
Read More

A full review of access rights, with role-based permissions and quarterly reviews. Read More

The Concern

  • A large logistics and distribution company ran five warehouses across Northern and Central India. The sites handled high-value consumer electronics and pharmaceutical consignments for major clients, with round-the-clock operations, large contract workforces and heavy daily vehicle movement.
  • Over the previous year, inventory shrinkage had risen at two sites, and a key client had raised concerns during a supplier review. Every warehouse had cameras, access control, perimeter fencing and a contracted guarding team, so on paper security looked comprehensive.
  • In practice, security had been built up site by site over several years, with different vendors, guarding agencies and local practices at each location. Leadership had no consolidated view of how well any of it was working. It wanted an independent assessment of where the real vulnerabilities were before losses grew or client contracts were put at risk.

What We Did

  • Understood the operation. We met the operations, warehouse, HR, IT and client-servicing teams to understand how goods, people and vehicles moved through each site, and where the highest-value inventory was stored and handled.
  • Assessed risk at each site. A site-specific risk assessment identified critical assets, likely threats and client contractual requirements. It covered internal theft, collusion, cargo diversion and unauthorised access.
  • Audited security in practice. Through day and night site visits, record reviews and observation of operations, we tested perimeter security, access control, video surveillance, guarding, vehicle and goods movement, and incident management.
  • Connected findings across sites. We compared the results across all five warehouses to separate site-level issues from organisation-wide patterns.
  • Prioritised the response. Each site received its own audit report, and leadership received a consolidated view. Urgent risks were kept separate from longer-term improvements.

 

What We Found

Every site had security equipment in place, but the measures weren’t working together to manage the actual risks.

  • Access rights were out of date. More than 140 active access cards belonged to former employees and contractors. Several staff also had access to high-value storage areas unrelated to their roles.
  • Cameras recorded, but no one watched. Footage was kept but rarely reviewed. Several cameras covering loading bays were obstructed or poorly positioned, or had low-quality night images.
  • Blind spots matched the losses. At both sites with rising shrinkage, key areas between storage zones and loading docks had little or no camera coverage.
  • Gate checks were inconsistent. Vehicle inspections and seal verification were often skipped during peak dispatch hours, and gate records didn’t always reconcile with dispatch documents.
  • Guarding standards varied by site. Each site used a different agency, with different post instructions, supervision levels and reporting formats. Night patrols were frequently missed.
  • Incidents weren’t tracked centrally. Each site handled its losses locally, so there was no consolidated reporting that could reveal patterns across sites.

The Outcome

Working with the site and operations teams, the client implemented:

  • Access clean-up: A full review of access rights, with role-based permissions and quarterly reviews.
  • Better coverage: Cameras were repositioned and added to cover loading bays and transit areas, and footage is now reviewed on a schedule.
  • Standardised gate procedures: Seal checks and dispatch reconciliation became mandatory at every shift.
  • Consistent guarding: All guarding agencies now work to common post instructions, supervision standards and reporting formats.
  • Central incident reporting: A single system gives leadership visibility across all five sites.

Most of these improvements came from changing processes and reconfiguring existing systems, not from buying new equipment. Within six months, reported shrinkage at the two affected sites had fallen significantly, and the company passed its next client supplier audit without major observations.

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