Pilferage

Pilferage is the systematic theft of small quantities of stock, a few packets here, a couple of bottles there, that individually seem insignificant but collectively drain lakhs from the supply chain. Unlike large-scale theft, pilferage is insidious because no single incident triggers an alarm. It is the single largest component of shrinkage in Indian FMCG distribution, estimated to account for 40-60% of total inventory loss in typical godown operations.

Pilferage hotspots in the Indian distribution chain include: the loading bay (loose units taken during vehicle loading), delivery vans (driver skims 1-2 units per stop and sells them privately), distributor godowns (warehouse boys pocket high-value SKUs), and return processing (good stock classified as damaged and diverted). High-value, small-size SKUs like premium chocolates, cosmetics, and health drinks are the most pilferage-prone.

Technology is the most effective deterrent. Scan-based dispatch that counts every case onto the vehicle, photo-based POD at delivery, sealed crate delivery with tamper-evident tags via crate management, and random cycle counts all create a culture of accountability that makes pilferage harder to execute and easier to detect.