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In an Uncertain Economy, Warehouse Contingency Labor Keeps Productivity High and Costs Low

Estimated reading time: 5 minutes

The impact of the COVID-19 pandemic continues to linger over industries worldwide. An ensuing global supply chain shortage, labor shortage, inflation, and rising interest rates all threaten economic stability. Outsourced warehouse staffing can provide flexibility as well as increased productivity that will give your organization an advantage in uncertain times. But only if you work with the right warehouse management service.

The Challenges of Warehouse Labor Staffing in an Unstable Economy

While inflation and rising interest rates contribute to economic uncertainty, warehouse managers are tasked with maintaining adequate staffing while also controlling costs. A recent survey found 73% of warehouse operators are having trouble finding enough workers when they are needed. But current economic conditions are also making them wary about adding to their workforces.

The staffing challenges faced by distribution centers, coupled with surges in demand led to a $502 billion increase in inventory carrying costs in 2021, a 25% increase. The capital costs of carrying this inventory increased 33%. For warehouse managers, it can feel like being caught between a rock and a hard place. Should you invest time and money in hiring and training warehouse staff to meet surges in demand? Will that investment be wasted if a slowing economy requires staff reductions? While temporary workers can help meet fluctuating demand, it is only a partial solution. Besides the time it takes to find and onboard temporary workers, they often lack essential training. This solution can be costly and have a negative impact on productivity.

In addition, hiring temporary workers on an ongoing basis to meet fluctuating staffing needs will take a toll on valuable time and resources that could be dedicated to strategic operations.

Capstone’s Better Warehouse Staffing Solution

Capstone’s Tactical Operations (TacOps) teams provide labor support when resources are stretched. Specialized associates can be mobilized for needs ranging from a surge in growth to a special promotion to emergency response. Capstone’s teams are trained and experienced. And teams include on-site supervisors who ensure performance.

While the risk of a slowing economy increases, having access to contingency labor when you need it, allows you to keep your distribution center or warehouse staffing lean. Capstone will be ready to support you with skilled workers should you encounter a growth in demand despite the macroeconomic environment.

Four Benefits of Capstone’s Skilled Warehouse Labor Service

When you partner with Capstone, the benefits go beyond simply meeting your staffing needs.

  1. Improved Performance

Tac Ops team members can be more productive than temporary workers. This is in part due to prior training. Capstone also uses an incentive-driven “pay-for-performance” compensation model that drives high performance. The result is Capstone’s Tac Ops team members are 30-40% more productive on a per unit basis than temporary labor.

  1. Cost Savings

When you can staff up quickly as needed, you can minimize the need to recruit, hire, train, and retain warehouse labor during an unsteady economy. The ability to match your labor costs to fluctuating needs frees resources to focus on strategic operations that can also lead to cost savings.

  1. Trained Talent and Leadership

Rather than spending your time searching for skilled workers, Capstone Tactical Operations will provide trained talent, including on-site supervisors who ensure performance and outstanding customer service. Capstone’s Tac Ops team members have at least nine months of hands-on experience in addition to extensive training in their task area.

  1. Time Saved

Capstone has strategic locations across the U.S. We can rapidly deploy a hand-curated team of high-performing associates across diverse verticals. With Capstone’s Tac Ops solution, not only do you save the time you would have to spend looking for skilled workers, you will be able to meet your staffing needs within days, not weeks, compounding your savings with improved operational efficiency and productivity.

Capstone’s Tactical Operations Services

Capstone is ready to help you navigate today’s risky economy. You’ll have skilled labor when you need it, without the burden of recruiting, training, and managing your contingency labor force. Meanwhile, you enjoy increased productivity and cost savings.

Learn more or contact us to discuss your needs. We’re ready to help.