ConFiDenTial

Khanh
[Company name] [Company address]
INTERNAL MEMO
DEPARTMENT SUPERVISOR AND ABOVE ONLY
DO NOT COPY OR REDISTRIBUTE
Recent spot checks of the warehouse inventory indicate that inventory shrinkage

has increased at an alarming rate. The items missing are all small-sized, high-value

items. A full physical inventory count and transfer audit has been scheduled. The

value of the missing inventory is currently estimated at over $500,000.00.

The following actions are being taken to attempt to resolve this problem:
 Frequency of guard patrols of the warehouse and warehouse perimeter are being
increased.
 Additional low-light capable security cameras are being installed inside the
warehouse. All employees must scan their card key individually when entering or
leaving the warehouse or warehouse break room.
 Retinal scanners are being installed at the high security area of the warehouse.
 An armed guard is being permanently posted at the high security area of the
warehouse. All outgoing shipments will be staged in the loading area by the
overnight crew. NO ITEMS WILL BE PULLED FROM THE WAREHOUSE
AND DIRECTLY LOADED FOR SHIPMENT.
 Lunch boxes, bags, briefcases, or other containers may not be taken anywhere in
the warehouse. Items left at the guard station can be taken to the break room for
employees. The frequency of inspections of personal vehicles leaving the parking
lot will be increased.

The legal department has reviewed the actions being taken and has verified that the actions

are in line with the security agreement signed by all employees when they are hired. Copies of

the security agreement will be posted on all employee bulletin boards as a reminder of their

responsibilities.

You are not authorized to discuss the inventory shrinkage or the actions being taken with

your employees. If asked about the changes, you are to say that the company is increasing
its security profile. That is the only statement you are authorized to make.

Unauthorized removal of any item from the warehouse will result in immediate when no

longer needed. Labs will be selected at random each week for secure item inventory.

"Internal use" refers to items removed from inventory for use in a lab. No other
removal or use is authorized unless approved in writing at the division level and
witnessed by a member of the security staff The authorization must be prominently
displayed on or near the item at all times.

Discussions about this issue are allowed at the departmental supervisor or above level, or
with employees of the security department. Discussions are allowed in the security
department offices or the secure conference room only. Open discussion of this issue may
be interpreted as grounds for termination.