A new warehouse inventory report points to a challenge distribution leaders know well: product can arrive much faster than it moves out. In data reported by Supply & Demand Chain Executive on October 26, 2026, SC Codeworks found that inbound inventory for August and September was 113% higher than the average for those months in 2023–2025, while outbound shipments increased approximately 20%.
For distribution center operators, the immediate question isn’t whether every facility is seeing the same increase. It’s whether their unloading, receiving, put-away, replenishment, and order selection capacity can adjust when inbound and outbound demand move at different speeds.
What Does the 113% Warehouse Inventory Increase Actually Mean?
The figures come from SC Codeworks data reported by Supply & Demand Chain Executive. The reported 113% increase compares August–September inbound inventory with the average for the same period across 2023, 2024, and 2025. It is not a claim that every U.S. distribution center received 113% more inventory, or that each facility needs 113% more labor.
The report also shows why operators should not assume one predictable holiday fulfillment pattern. SC Codeworks found that fourth-quarter outbound shipments, compared with the third quarter, rose 55% in 2025, fell 29% in 2023, and were nearly flat in 2024.
That variation matters. Inventory can arrive early, remain in storage longer than expected, or move out suddenly when customer orders accelerate. A distribution center needs a plan for all three conditions.
The management question is simple: Is your operation designed around how much freight arrives—or how efficiently inventory moves through the building?
The Risk Isn’t Just More Trailers. It’s Inventory That Stops Moving.
A busy receiving dock is visible. The downstream consequences are sometimes harder to spot.
When inbound inventory outpaces outbound movement, freight may occupy receiving lanes and temporary staging areas longer than planned. Put-away teams can fall behind. Product that has physically arrived may not yet be available for picking. Additional touches and relocations can increase labor requirements without increasing sellable output.
The effects can spread across the facility:
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Unloading: Concentrated arrivals strain doors, equipment, and labor coverage.
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Receiving and put-away: Backlogs extend the time between trailer arrival and system-available inventory.
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Replenishment and selection: Inventory can exist in the building without being available where pickers need it.
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Space and safety: Congested staging areas increase handling complexity and create avoidable operational risks.
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Costs: Overtime, rehandling, detention exposure, and inconsistent units processed per labor hour can erode margins.
The goal isn’t simply to unload each trailer faster. It’s to keep freight moving all the way from the dock to an available inventory location—and eventually to the customer.
For more on this end-to-end measure, see FHI’s guide to dock-to-stock time and how to reduce it.
Five Ways Distribution Centers Can Respond to an Inventory Surge
1. Translate inbound forecasts into work, not just volume.
A forecast showing 40 inbound trailers does not reveal how much labor the next shift will need. A floor-loaded trailer may require a different operating plan from palletized freight; SKU mix, sorting, restacking, labeling, and receipt requirements can change productivity substantially.
Build a rolling forecast that connects expected arrivals to cases or pallets handled, processing complexity, equipment availability, door capacity, and labor hours by function. Compare that workload with actual productive capacity—not just the number of people on the schedule.
2. Manage the entire dock-to-stock handoff.
When unloading improves but receiving or put-away cannot keep pace, the bottleneck simply moves. Set clear handoffs among unloading, verification, staging, system receipt, and storage. Identify who owns exceptions and how long unresolved freight can remain in each stage.
A coordinated inbound operation protects both dock availability and inventory accuracy. FHI’s managed distribution services can support unloading, receiving, put-away, replenishment, and other connected warehouse functions.
3. Protect staging space and expose inventory aging.
A full staging area is not evidence of strong throughput. It may signal that freight is waiting for a process, equipment, system confirmation, or labor that is unavailable.
Separate ready-to-put-away inventory from exceptions, identify aging pallets or cases daily, and set escalation thresholds for freight that remains unprocessed. Use physical space intentionally rather than treating open floor area as unlimited overflow capacity.
4. Plan for more than one outbound scenario.
The SC Codeworks report illustrates that fourth-quarter shipping activity can differ sharply from year to year. Build scenarios for a fast outbound ramp, uneven demand, and slower-than-expected inventory drawdown.
If orders accelerate, replenishment and selection may need additional capacity. If orders are delayed, leaders may need to reallocate labor away from outbound functions and protect productivity until shipment demand catches up. Flexible plans reduce the cost of guessing wrong.
5. Add capacity where the constraint actually exists.
More headcount does not automatically mean more throughput. The right question is which task is limiting the next stage of the operation.
If trailers are waiting, additional unloading capacity may help. If freight is staged but not system-available, focus on receiving or put-away. If product is in storage while orders are late, examine replenishment or selection execution.
For temporary disruptions or sudden demand, FHI NOW contingency labor offers experienced warehouse teams that can mobilize in as little as 72 hours, subject to the requirements of the operation. Longer-term, an onsite managed labor model can align supervision, productivity standards, and workforce capacity with the work performed.
Which Warehouse KPIs Matter Most Right Now?
Don’t let a broad industry headline substitute for a facility-level operating dashboard. Review these indicators by shift, function, and—where useful—customer or product category:
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Inbound workload versus capacity: Scheduled and actual cases, pallets, and trailers against labor-hour capacity.
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Dock-to-stock time: How long inventory takes to become accurately received and available.
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Staging age and occupancy: How much freight is waiting, where it is waiting, and why.
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Output per labor hour: Cases, pallets, or lines completed against a consistent productivity standard.
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Outbound readiness: Replenishment completion, order-selection throughput, accuracy, and shipment schedule attainment.
A daily review of these measures helps distinguish a temporary demand spike from an operating constraint that needs intervention.
Keep the Warehouse Ready for What Happens After the Surge
The 2026 inventory data is a reminder that seasonal planning is not only about peak inbound volume. Once inventory arrives, the work continues: storage, replenishment, selection, outbound shipping, and eventually returns or other post-peak activity.
Distribution leaders should be able to answer three questions: Where is freight slowing today? What workload could change next week? How quickly can we adjust people, processes, and capacity without sacrificing safety or accuracy?
FHI works alongside distribution operators to improve the execution behind those answers. From managed unloading and receiving to order selection and broader warehouse labor support, our role is to help your team maintain predictable product flow and measurable performance—even when volume is unpredictable.
Is your distribution center prepared for the next inbound-to-outbound imbalance? Talk with FHI about your warehouse’s current capacity and labor requirements.
Frequently Asked Questions
Did warehouse inventory increase 113% across the entire United States?
No. The 113% figure comes from SC Codeworks data cited in an October 26, 2026 industry report. It compares August–September inbound inventory with the average for those months in 2023–2025. It should not be treated as a nationwide increase for every warehouse.
Why is higher inbound inventory a problem if outbound orders are still moving?
Because inventory arriving faster than it leaves can increase storage, staging, receiving, and handling requirements. A facility may continue shipping orders while developing an inbound backlog that reduces flexibility and future capacity.
What is the difference between unloading speed and dock-to-stock time?
Unloading speed describes how quickly freight comes off a trailer. Dock-to-stock time covers the broader process of unloading, verifying, receiving, and putting inventory away so it is available for use or fulfillment.
Should distribution centers hire more workers when inbound volume surges?
Not necessarily. First identify the task limiting throughput and compare required labor hours with productive capacity. Better scheduling, process coordination, or flexible managed labor may address the constraint more effectively than permanent hiring alone.
Which KPI best reveals an inbound warehouse bottleneck?
No single metric tells the whole story. Dock-to-stock time, staging age, door turnaround, and units processed per labor hour are particularly useful when reviewed together to find where freight slows down.
How can contingency warehouse labor help during peak season?
Contingency labor can add targeted capacity for unloading, loading, order selection, and other functions when workloads exceed available resources. A defined scope, onsite coordination, safety procedures, and productivity measures are essential to a successful deployment.
What should warehouse operators plan for after holiday inventory peaks?
Prepare for changes in outbound orders, possible excess inventory, returns, and labor reallocation. The goal is to scale capacity with actual workload rather than assume the inbound peak and the fulfillment peak will happen at the same time.
Related reading: The Freight Has Arrived. Is Your Distribution Center Ready for What Comes Next? · Why Inbound Is the Most Overlooked Bottleneck in Warehousing
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