NCJ Number
96740
Journal
Security Management Volume: 28 Issue: 7 Dated: (July 1984) Pages: 24-27,29
Date Published
1984
Length
6 pages
Annotation
A case shortage reporting system, guards, key control, closed circuit television monitoring, and other techniques have reduced employee theft substantially at New Balance Athletic Shoes in Boston Mass.
Abstract
Because security problems accompanied New Balance's rapid growth, management decided to create a security department and hired Gary Palefsky, a young ex-police officer with a degree in criminology and experience in crime prevention. He now heads a department of about 15 people, largely contract uniformed guards. The biggest factor in stopping internal theft has been Palefsky's case shortage system. In the factory, every style of shoe is made in 12-pair lots which progress through the production line. If a pair is missing, the foreman will not accept the lot unless a case shortage report is attached explaining the ommission. Copies of the report go to the accounting department, the plant manager, and the security department. To cut losses while shoes are in transit, New Balance has security officers count the cases and seal the truck. Only officers at the other facility are authorized to break the seal and unlock the truck. Closed circuit television monitors access in the factory and outlet stores. Key control is strict throughout the facility, and door locks with interchangeable cores are used so locks can be rotated. Employee awareness is another key to security. New employees are told of policies concerning termination and prosecution if caught stealing from the company, and workers know there is a problem when they see Palefsky with a case shortage report in the factory.