Labor Management

Labor costs in the warehouse account for 50 to 70 percent of the average company’s warehousing budget. Some of the toughest challenges companies face relating to the management of a workforce for warehouse/distribution center operations include finding and keeping skilled, dependable and qualified workers. Also trying to increase workforce productivity and control labor costs. According to the Bureau of Labor Statistics, the turnover rate for warehouse workers is 36 percent. The Material Handling Industry reports the logistics industry will be looking to fill about 1.4 million jobs, or roughly 270,000 per year. Some of the workforce management practice companies would like to change over the next 24 months include: identifying and improving productivity gaps, refining real-time labor productivity and visibility, implementing or upgrading labor analytics, software and tools, tracking incidents and overall safety, and automation of labor management process that are currently manual.