Increased Profit through Decreased Loss
“Since installation, our video surveillance solution from United Security Alliance has easily generated over $1,000,000 in savings,” says Allen Bowdler, General Manager at Pratt Industries, a paper recycling plant in Conyers, Georgia.
His story began in a way you might expect, but the actual results are staggering. Four years ago, Bowdler didn’t have a video surveillance system in place for security and safety.
He was intrigued by the claim that partnering with professional systems integrator United Security for safety and security solutions, could increase his profitability. After an on-site analysis, it was clear his company could benefit, so they moved forward.
What they would soon record and uncover was never anticipated, however.
Recorded Proof of Fraud
If employees don’t think they will get caught, many will take what is not theirs to take. It is a proven fact in the psychology of workplace theft.
Once Bowdler suspected an ongoing internal fraud situation, he expanded the surveillance system to cover another area of the plant called the “scale house” where incoming and outgoing trucks are weighed.
Thanks to recorded video proof aided by forensic accounting, Pratt Industries was able to put together a case against two employees who created bogus scale tickets for incoming materials. The false tickets generated unearned payments to small vendors who never delivered the materials. Pratt executives were able to track the fraud back 15 months and will recoup lost earnings of almost $750,000 in this situation alone.
This manufacturing company also employs temporary workers they call “road hands” to conduct maintenance on equipment every six weeks. They have recorded the movement of spare parts to outside locations and caught those trying to pick them up after business hours. Bowdler says a brass block sitting on a shelf could have a scrap value of a few hundred dollars, but a replacement value of up to $20,000.
“The disappearance of inventoried spare parts exposed us to potential extended downtime,” says Bowdler. “By putting the cameras in place, we’ve eliminated it altogether.”
Everything from screws, hand tools, and dollies were also disappearing. They don’t anymore. Those that do, are found. Sometimes it’s a simple misplacement, but when they’re stolen, the thieves are found and released from employment.
Even trespassers interested in stealing stainless steel parts and other valuable equipment, have been viewed on property through video and have been caught by police on their way out.
“We’re keeping honest people honest. That’s how the system is saving us money now,” says Bowdler.
Management has used recorded video as a training tool, as well. People walking under cranes with suspended loads, crew members driving forklifts in an unsafe manner, and even accidents have been recorded. The video is often used in training exercises to discuss how certain situations could be avoided in the future.
“We ask what the safety violations are, and what we should do instead,” says Bowdler. “Then, we pause, rewind, and play it again to reinforce.”
Video recordings aid the process of workers compensation claim proceedings, as well.
After Hours Office Security
Video surveillance combined with video analytics is being used to monitor and signal movement inside the office after hours. These alarms typically signal unauthorized activity or visitors. Foul play is also recorded.
This type of security was the original objective of the system, and the system is fulfilling that objective.
However, as any good employee will, the system has gone above and beyond the call of duty.
For More Info
Bowdler says he stays with United Security for the quick response to service requests, the ability to lease equipment, the expertise and collaboration to meet his goals, and the quality of the equipment that is installed.
For an on-site, comprehensive analysis of common areas of loss related to security, safety, and productivity at your facility, please call (866) 620-0505 to schedule your first visit by a United Security representative.
About Pratt Industries
Pratt Industries is America’s 5th largest corrugated packaging company and the world’s largest, privately-held 100% recycled paper and packaging company, with more than 4,000 highly-skilled, green-collar employees dedicated to the environment and sustainability.