Clearing the Shelves Faster: Accelerating Efficiency with Managed Labor

In the competitive landscape of discount retail, optimizing distribution center operations is crucial for maintaining low prices, slim margins and customer satisfaction. Managed warehouse labor solutions offer significant improvements in efficiency and productivity, critical for the operational success of discount retailers.

At FHI, we know the supply chain is struggling with labor challenges, especially during the busy summer months. We provide experienced, managed warehouse labor so our customers can focus on growing their business.

The Benefits of FHI

1. Specialized Expertise Boosts Productivity

According to a report from the Retail Industry Leaders Association, implementing managed labor can increase pick and pack speeds by up to 30%. This is essential for when rapid inventory turnover is a staple of the business model.                                                                                    

2. Scalable Labor Meets Dynamic Market Demands

Managed labor solutions allow for the rapid adjustment of workforce numbers, agility that is particularly beneficial during peak shopping seasons when labor needs can spike by over 50%, according to the National Retail Federation.

3. Cost Reduction through Efficiency

Transitioning to managed labor converts fixed labor costs to a variable model tied to productivity, enabling more effective budget management. Industry data suggests that discount retailers can achieve labor cost reductions of up to 20% annually by adopting managed labor solutions, per findings from the American Logistics Association. 

4. Minimized Administrative Overhead

Managed labor providers streamline workforce management, handling recruitment, compliance, and training. Research by the Supply Chain Management Review indicates that companies using managed services can reduce HR administrative costs by up to 15%. 

5. Enhancing Operational Metrics

A notable case study within the discount retail industry showed that after implementing managed labor, a prominent chain experienced a 40% increase in operational efficiency. This optimization led to faster fulfillment times and fewer stock-outs during critical periods, improving both customer satisfaction and store performance.

For discount retailers, managed warehouse labor solutions are a strategic asset in improving distribution center operations. The benefits—ranging from increased efficiency and flexibility to cost savings and reduced administrative burden—are supported by compelling industry statistics.

FHI, a leader in the managed warehouse labor space, brings over 30 years of experience servicing top-tier customers. With warehouse associates deployed across the U.S., FHI stands as a beacon of reliability and expertise, providing scalable and efficient workforce solutions that can drive significant operational improvements in the discount retail sector.

For additional information about FHI’s Managed Labor Solutions, visit us online at FHIWORKS.com.