Even after we did an audit and installed security cameras, we couldn't figure out why stock was missing

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 system.

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.