Running warehousing and distribution operations in Texas is already hard enough.
Finding high-quality personnel who can perform safely, efficiently, and productively in a rigorous role? That makes it even harder.
In 2016, managers at Texas warehouses and distribution centers (DCs) are under a lot of pressure. You have to source and onboard the right workers. After the interviews, background checks, paperwork and training, you have to deal with turnover and repeating the whole cycle again when an employee leaves or gets fired.
The business environment in Texas creates staffing pressures, too. The Lone Star State has an unemployment rate around 4.3%, and major players like Amazon and other big box chains that are moving into or expanding operations here will vacuum up the few available workers.
That, in turn, will have a big impact on the cost of business throughout the supply chain.
As with most business divisions, labor may be the most challenging and important component. It’s also the most expensive. The workforce represents half of the operational costs of for Texas warehouse operations and about 20 percent of total supply chain costs. Labor costs throughout Texas are on the rise due to personnel shortage, a higher wage base, and full-time employee benefit costs.
Another consideration: Warehouses face serious turnover (as much as 35%, according to the Bureau of Industry Statistics).
“There are only so many people who are willing to work in a warehouse environment,” says Frank Layo, a partner at supply chain consulting firm Kurt Salmon. “It’s become a major supply-chain risk.”
The operational impact of turnover is brutal: it drains time and focus from warehouse management and costs thousands of dollars per employee.
Many warehouses and DCs simply don’t have the manpower to staff up to meet demand or goals.
So how do you thrive in this modern business landscape?
A lot of Texas warehouse operations turn to packing companies and staffing agencies. Some agencies are better than others, and many of them can offer short-term cost savings.
But they are not a good long-term solution.
A full-service third-party supply chain labor partner like Costa Solutions can protect you from these ballooning costs for the long haul.
How Costa Saves Labor Costs
Here’s what the full-fledged supply chain management labor experts of 2016 offer that staffing agencies simply can’t:
- smart people
- smart processes
- a focus on safety
- strategic input
- reduced overhead
- increased productivity
- decreased liability
- long-term cost savings
Your goal is to hit peak performance. You need a partner that can work with your team to make it happen. You need a partner that understands your goals and truly cares about helping you achieve them.
Here in Texas, there’s a new world of supply chain labor options available to you. In fact, if you haven’t revisited the landscape of warehouse and labor outsource options recently, it’s time to take a second look.