Security in the Purchasing Function

Security in the Purchasing Function16YOU SHOULD BE ABLE TO:Discuss current employee theft statistics.Describe the security problems associated with the purchasing function.Identify methods used to prevent security problems related to purchasing.Create a process to reduce theft and pilferage in a hospitality operation.SECURITY PROBLEMSKickbacksInvoice scamsSupplier and receiver errorInventory theftInventory paddingInventory substitutionsTelephone sales scamsSECURITY PROBLEMS (CONT.)E-Mail sales scamsOperating activitiesSuspicious behaviorWATCH EMPLOYEES WHO:Seem unduly friendly with salespeopleHang around storage areasNeedlessly handle keys or locksMake too many trips to garbage areas, bathrooms, locker room, or parking lotWATCH EMPLOYEES WHO (CONT.):Requisition abnormally large amounts of suppliesMake frequent trips to the storage areas for no real reasonHave relatives working for the suppliersFrequently stray from assigned workstations WATCH EMPLOYEES WHO (CONT.):Are seen stuffing boxes or packages under a couchAre seen passing packages to guestsPermit drivers to loiter in unauthorized areasHave visitors on the work sitePREVENTING SECURITY BREACHESSelect honest suppliersAsk other operators about suppliers’ honestyEmployee honest employeesProsecute dishonest employeesBackground/reference checks, integrity testsDesign physical facilities to help ensure securityPREVENTING SECURITY PROBLEMSDocument cash paid-outsNo post office box paymentsThose who buy should never pay billsCancel paperwork on all completed transactionsIndependent auditPREVENTING SECURITY PROBLEMS (CONT.)Secret shoppersIntegrity and drug testsBonding companyTrash compactorEnter/Leave through one doorParkingLocker roomsDelivery agent concernsPREVENTING SECURITY PROBLEMS (CONT.)Do not rush receiversPhysical barriersTime and heavy-duty locksGood lighting in storage areasClosed-circuit television or digital recordersUniformed guardsSee-through screens on storage facilitiesPerimeter and interior alarm systemsPREVENTING SECURITY PROBLEMS (CONT.)Separate purchasing activitiesCompare pricesApproved supplier listsSmall single-service packagesRestrict access to certain items