Warehouse and distribution centers (DCs) needing to outsource warehouse and shipping operations have a lot of options.
Of course, they can hire, train and support an in-house labor force to do it all. But in an era of supply chain optimization where everyone’s feeling the pressure to keep labor costs low, a common option is to expand operations by contracting with a managed labor/lumper service like Costa Solutions.
To begin a successful relationship with an outsourced dock scheduling or freight unloading partner, you’ll need an agreement that details the responsibilities of all parties. What will the vendor provide for you? The services might include unloading, packaging, production support, and various warehousing services, which might include:
- Janitorial Service
- Pallet sorting
- Tote sorting
- Corrugated bailing and recycling
- Truck check-in/check-out
- Trailer striping
- Salvage returns
- Trailer washing
- Inventory management
- Parking lot striping and maintenance
You have outsourcing options available, and they all come with different pricing models. Here, we will cover a few of the basics so you’ll be better prepared.
Set-up: Depending on your product and the warehouse size, the vendor you choose, and the services you need, the initial setup costs can vary widely.
Receiving: After the set-up, the lumper service will begin to handle your product: sorting, labeling and packaging product in your warehouse. They will also enter your inventory into their system. Receiving can be handled on a per-unit basis or on an hourly rate.
Employee Payroll: Some providers pay warehouse labor a flat rate; others pay based on performance. Costa Solutions, for example, uses incentivized compensation, citing studies that show efficiency and productivity are much better when incentivisation is in play. Incentivized pricing could include pricing based on piece rate, weekly volume, daily volume, output without error, productivity per hour goals, and team pay.
Specific information about pricing requires knowing a little more about your business and its needs. Contact Costa Solutions today and we’ll be in touch. We want to earn your business, so let us take a look at how we can help improve your warehousing operations!