Whether a warehouse is owned directly by the enterprise that uses it or is leased from a third-party warehousing provider, warehouse security is a necessity and a challenge.

Just how big is the warehousing industry?

The North American warehouse leasing market revenue was reported to have been USD 27.96 billion dollars in 2017 and is expected to see a compound annual growth rate of around 3.8% by the end of 2025.

And in this age of advanced technology along with much more sophisticated criminal efforts, warehouse security is also changing.

Warehouse Security – A Costly Option or Strategic Investment?

One of the unchanging realities of warehouse security measures is that they all cost money. And third party warehousing providers, manufacturers, and other warehouse owners must find ways to mitigate those overhead costs while providing the best security possible. 

There are many factors at play when it comes to determining the number of resources needed to ensure warehouse and cargo security. One is the value of the goods, products, or materials being warehoused. Another is the perceived level of threat anticipated. 

Consequently, not every warehouse facility has the same level of security measures in place.

As a blog article from Corporate Realty Advisors notes,

“Companies often approach security for their product in one of three different formats, depending on the value of the product:

  • No physical security measures;
  • Security fence around dock areas;
  • Security fence and adding a guard shack.

Obviously, price is a factor in choosing which, if any, security solutions you choose to implement. Some companies decide to evaluate the risk of theft occurring against the cost of the theft-deterrent. Physical security measures such as security fencing and guard shacks can cost anywhere from $200,000-$350,000, depending on the size of the property and the number of guard shifts.”

And this is not including additional, common measures such as alarm systems, access control systems, and video surveillance hardware.

Part of the problem with some warehouse owners or third-party providers is the company’s perspective on security costs: some view these as expenses that reduce profit margins, while others see them as investments that enhance the overall value of their services or minimize the costs of loss due to theft. 

Warehouse Security Problems and Challenges

There are several security threats to consider when it comes to warehousing and there are also many challenges to providing sufficient and effective security measures, as well.

Here is an overview of the most common:

Loss Prevention

Both external and internal theft are a challenge for warehouse security efforts. Strictly speaking, any cargo, product, or material that is being stored or warehoused has potential value in some type of “black market” arena. However, some cargo is more likely to be targeted than others. 

Theft by employees presents its own challenges and security countermeasures that are often addressed with access control systems, on-site security guards, and indoor video surveillance systems. 

Break-ins and Theft

Loss prevention by external parties typically involves fencing, secure gates, doors, and windows, alarm systems, external video surveillance, and even guard patrols in some instances. 

Burglary and theft can range from simple break-ins and one or two individuals removing goods, to entire shipping containers being stolen or truckloads of goods being removed by thieves. And, according to an article from Loss Prevention Magazine,

“Cargo theft statistics vary, but it is generally agreed upon that cargo theft is a $15 to $30 billion-dollar problem each year in the United States. Exact numbers are impossible to determine in that many cargo crime incidents go unreported, and the numbers related to those incidents that are reported differ greatly by agency.”

The same article goes on to note that the FBI reports that less than 20 percent of stolen cargo is ever recovered.


While vandalism is perhaps less frequent than theft, it still represents a significant expense for warehouse owners and potential safety hazards. In addition, acts of vandalism also expose the vulnerabilities of a warehouse facility’s security measures. 

Because many warehouses are located in sparsely populated and remote areas, they tend to be more inviting targets for perpetrators of vandalism. A typical security measure to prevent these acts, among others, is the use of security guards. Generally speaking, this can be an effective proactive measure for preventing break-ins and vandalism.

Access Control

Almost every warehouse facility has some system of access control to monitor who is entering and exiting the premises. The challenge is to prevent fraudulent access and provide secure and comprehensive access control.

In larger warehouse facilities, the use of security personnel in addition to electronic key card systems are often employed. More sophisticated access control measures may also include video surveillance systems with license plate recognition capabilities.

Passive Video Surveillance

Warehouses need state-of-the-art video surveillance technology to help them monitor multiple locations remotely. Owners and guards will be able to access live video surveillance from a command center, their computers, or even their phones. Additionally, the presence of video surveillance cameras will deter crime and help significantly with loss prevention.

The problem with traditional video surveillance systems is that they are essentially “passive” security measures. In other words, they can record events, but cannot engage nor intervene. As a result, they are simply static deterrents at best.

What is needed for sufficiently improved warehouse security is not simply video surveillance, but video enhanced with smart remote monitoring.

Your Ultimate Warehouse Security with Blue Eye

Installing an AI video surveillance monitoring system is a smart solution that combines live video monitoring along with active deterrence and intervention to provide enhanced security for your warehouse facility.

And Blue Eye’s AI-enhanced video system gives the ability to issue audio warnings that can prevent or deter crime and minimize false alarms. In addition, our AI technology can reduce the time needed for surveillance, and all at a cost-effective price.

A security video surveillance system is preferable to most other security measures without video. But current security video technology still falls short of an ideal solution, which is why other costly security measures are often still needed.

However, the ultimate warehouse security is a video monitoring system that gives you the best security benefits without the traditional disadvantages.

Blue Eye offers a solution that provides just that. And at a surprisingly affordable price. Our solution is an AI-empowered managed service platform that requires no up-front capital costs. 

So, give us a call today at 855.258.3662 or email us at [email protected] and let us design an effective solution for your warehouse security needs.