Four WMS security concerns for pharmaceutical warehouses

Today’s pharmaceutical supply chain is complex, and the warehouse may be its most intricate and dangerous location when not properly monitored.

In addition to longstanding physical risks, digital and supply-chain cyber threats (such as ransomware, phishing campaigns targeting cold-chain partners, and third-party vendor breaches) now rank alongside theft, contamination, and spoilage as top security concerns.

Your management system will need robust security protocols to address a wide range of safety risks. The primary threats include theft, spoilage, and contamination; fraudulent products; cyber threats to the pharmaceutical industry, including attacks on logistics, cold-chain monitoring devices, and third-party partners; and the management of the end-of-life for drugs, where new regulations come into effect.

This guide highlights the four most critical concerns as you manage goods made from ingredients that travel around the world to create some of the most profitable, compact products.

1. External and internal theft

When your products are in motion, they have a reduced risk of theft and other threats because it is harder to access them. After arriving at your warehouse and then moving to storage, thieves know more about a potential target and have fewer variables to account for, increasing the threat of large-scale theft of your pharmaceuticals.

Pharmaceutical warehouses can be easy targets for theft, especially when products are stored for long periods and left unattended. Thieves may also exploit equipment like forklifts to carry out large-scale thefts.

Enhance your WMS security with:

• Strict access control
• Role-based permissions
• Two-factor authentication
• Audit trails
• Physical security integration (CCTV, badge readers, motion detection).

Your system should detect motion, verify activity against work schedules, and confirm whether assets are in use to ensure tighter security.

Identify and prioritize your system security requirements with our customizable WMS requirements template

Treat insider threat and vendor collusion as high-probability risks: limit who can view or change order picks, require dual-release for high-value shipments, and log both human and system actions with immutable timestamps.

The $80 million theft from an Eli Lilly pharmaceutical warehouse in March 2010 was traced to a group of thieves who allegedly got security blueprints from an insider.

Not only were they able to avoid some security measures, but they also used on-site equipment to speed up the collection and removal of the drugs. (Prosecutions and investigations later tied multiple suspects to the Enfield theft.)

2. Environmental controls

Pharmaceutical storage areas must accommodate volume and protect sensitive products from temperature, humidity, shock, and contamination. Post all drug and storage area requirements.

Maintain proper cooler temperatures and prohibit unauthorized food storage or consumption, as this risks direct contamination and attracts pests.

Your WMS should integrate with environmental monitoring systems (sensors, alarms) to track product conditions and chain-of-custody.

Secure IoT endpoints by updating credentials, segmenting networks, and regular patching to prevent tampering. A secure pharmaceutical WMS also ensures proper drug storage, temperature control, and a clean, vermin-free environment.

3. Mislabeled products

For pharmaceutical warehouses, WMS security must cover vendors and track products from lab to door. If wholesalers use multiple providers, they risk "salting"—fake drugs mixed with legitimate ones.

Salting uses proper labels, endangering your company. Packaging may mimic manufacturers, but batch numbers often won't match records, though advanced printing could replicate them.

Use serialization, electronic track-and-trace (DSCSA compliance where applicable), and GS1 standards to reduce the risk of mislabeling and counterfeits. Require item-level scanning on receipt, reconcile serial numbers to manufacturer records in your WMS, and establish a documented vendor qualification and audit program.

Proper tracking through your WMS security portal can help mitigate this risk. It can also ensure you’re working with manufacturers who have distribution agreements with specialized pharmaceutical wholesalers, but not those who deal with secondary wholesalers.

Note: the Drug Supply Chain Security Act and related global initiatives push the industry toward interoperable, electronic verification of product identity; make serialization and secure data exchange part of your roadmap.

The National Center for Biotechnology Information warns that small, secondary wholesalers are not only the weakest point in the current supply chain, but they may be breaking multiple licensing and distribution laws, willfully and unknowingly, which can put your operations at risk.

4. Proper disposal

Pharmaceutical warehouses inevitably face drug expiration or damage. Proper disposal is a major WMS security concern due to strict local, state, and federal regulations.

Beyond regulations, your WMS security team must continuously monitor these drugs. Even expired drugs with street value are targets for theft.

Ensure proper storage, keeping expiration dates visible, and follow a modified FIFO rule for first-to-expire drugs. Implement automated WMS expiry alerts, quarantine damaged or near-expiry stock automatically, and log all destruction or return actions with auditable records. Failing to do so significantly risks patient harm and your company.

Takeaways

We don’t normally think of these issues as part of WMS security, but the major threats and potential litigation that a pharmaceutical warehouse could face make them a top priority for any safety team. Combine physical security, inventory controls, cGMP warehouse practices, and cyber hygiene into a single risk register that the warehouse manager (and their IT/security counterparts) review regularly.