Over the past few months
we have been running out of stock of certain components. This held up production
and cost us a great deal of money. No one seemed to know why this was happening
so we had an audit.
What we found was
shocking. We were running out of stock because someone was stealing the key
components. The invoices showed they were delivered, the internal stock systems
said they were on the shelves, but when went to the shelves, they weren’t
there. There were only two people in the warehouse. We didn’t know what to do
because we couldn’t accuse someone without evidence.
We installed security
cameras but didn’t see anything suspicious. We were still missing stock- in
fact we lost over $10k of components. We couldn’t figure out what was going on
so we finally called the police. They sent someone from the fraud squad who
looked at all the records. She said nothing was stolen. The fact was it never
arrived at the factory. The invoices were false and one of the warehouse men,
who was in on the fraud, recorded them as real and then entered them into the
The warehouse man was
arrested as was the sales rep at the supplier. It turns out they were cousins
and had done this at other companies.