According to the United States Department of Labor’s Bureau of Labor Statistics there are currently more than 691,000 warehousing and storage workers on the job in the United States, and that’s probably a low number, given that many factories and other commercial facilities have warehouse or restock areas that may not be classified that way.

With that many people constantly working in or around potentially hazardous materials, forklifts, near storage areas, and around machines, safety concerns and strategies are a primary issue for warehouses, factories and other industrial operations. Where do you start when you’re working toward a safer operation? Is training enough? Will equipment and systems work on their own?

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One of America’s groundbreaking marketers, John Wanamaker, once famously said “half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

Those who run warehouses, factories and other industrial facilities are hopefully not quite as in the dark about our expenses as Wanamaker was when it came to his ad budget, but there is definitely room for improvement when it comes to understanding hidden costs and fruitful expenditures.

For most of us, the coin of the warehouse is time and how it is expended.

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Most companies who implement surveillance programs and other security measures do it because they want to address employee related theft. In industries like warehousing, it’s a common problem,  and it costs up to $15 billion in lost inventory every year. It’s been known for years that companies with excellent security measures can also expect to be more productive, but that’s always been correlation, and the two haven’t been linked by cause. That may have changed based on a recent study.

“Cleaning House: The Impact of Information Technology Monitoring on Employee Theft and Productivity,” takes a look at how firm investments in technology – based employee monitoring impact both misconduct and productivity. The study makes a persuasive case that pilferage is an issue that hinges on management style more than individual ethics.

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