Fulfillment Warehouse Security

Fulfillment warehouse security is a hot topic. And it should be. All fulfillment warehouse security priorities are not equal.

One of the biggest concerns company executives have about outsourcing fulfillment is security. You’re trusting a third party with your inventory, proprietary company information and confidential customer data. That is a tremendous responsibility – and a potential nightmare if something goes wrong. The fulfillment warehouse you choose must be able to protect you from:

• Shrinkage
• Product damage or deterioration
• Data theft
• Breaches of industry and/or governmental compliance requirements, if applicable

The right fulfillment warehouse will offer three “proofs” that your workload is safe with them.

1. Level 1 PCI certification.

You can sell the finest products available anywhere, but if your customers cannot trust you to keep their personal information safe, you’re out of business. And you feel the same way about company information. Requirements for Level 1 PCI certification have changed recently due to the myriad of credit card breaches with major retailers. There are two things you should ask when evaluating data security of your fulfillment partner:

1. Are they certified or are they compliant? Only a certified partner has your best interest in mind. Anyone can claim compliant until they have a breach.
2. Are they committed to remaining certified for the long term? Being certified by a third-party is a costly and time-consuming endeavor, but something the top fulfillment houses will do to ensure your data is protected.

A Level 1 PCI certification assures you that credit card and related data is protected behind high-level systems and protocols.

2. FDA registration.

If you sell health-related products such as dietary supplements, packaged foods or beauty products, working with an FDA-registered facility is nothing short of critical. The condition and efficacy of your products takes quality control to an entirely new level. Mistakes could be harmful to your customers, not just annoying.

Your fulfillment warehouse must be registered as a food grade facility with the FDA to hold your inventory. Don’t take their word for it, ask for confirmation of their registration.

OK, you say, but we don’t care. We sell books. (Or shoes or some other non-perishable product.) You may not have to meet the same stringent product protection requirements, but knowing your facility pays this much attention to warehousing should give you extra confidence that they’re paying extra attention to your inventory, too.

3. ISO 9001:2008 certification

For decades, ISO has been the standard by which manufacturers and vendors around the world judge each other. It’s not easy to achieve ISO certification, and it’s not easy to maintain and upgrade it. This ongoing improvement process demonstrates your fulfillment warehouse management and employees are 100% committed to being the best. Isn’t that the team you want handling your fulfillment?

Security starts with the fulfillment warehouse itself.

These protections are only viable if the entire fulfillment facility is fully secure. Look for a company that uses keycard access and live, monitored video surveillance 24/7. These systems should be redundant. Ask about their disaster recovery plan, because things happen. If you sell pharmaceuticals or perishable products, you cannot underestimate the importance of security when choosing a fulfillment warehouse (Read our blog post on this Choosing A Fulfillment Company here).

Facility security is an important issue when considering fulfillment companies but there are more issues to consider when examining whether you’re performing at the top of your game.

Take a free Fulfillment Needs Assessment to score your current state of fulfillment services.

Agree that fulfillment warehouses are important? Great! Now choose the correct Fulfillment Warehouse and Fulfillment Center for you.