Warehouses are under more pressure than ever to do more with less.
Customer expectations continue to rise, labor markets remain tight, and volume swings are no longer limited to “peak season.” For many operations leaders, the question is no longer if labor disruptions will happen — but how prepared the operation is when they do.
That’s why contingency labor teams for warehouses have become a critical part of modern supply chain strategy.
Rather than scrambling to hire under pressure or burning out full-time teams with excessive overtime, contingency labor teams provide a flexible, performance-driven way to stabilize operations when labor demand changes fast.
Contingency labor teams are pre-planned, on-demand warehouse labor resources designed to support operations during short-term, variable, or unexpected labor needs.
Unlike traditional temp staffing — which often focuses on filling individual shifts — contingency labor teams are deployed as managed groups that are trained, supervised, and aligned to warehouse productivity and safety standards.
These teams are commonly used to:
When executed correctly, contingency labor is not a stopgap — it’s a stabilizing force.
Operations leaders typically turn to contingency labor when one or more of the following conditions exist:
Promotions, customer demand shifts, and supply chain disruptions can quickly overwhelm fixed labor models.
Recruiting, onboarding, and training take time — and time is often what warehouses don’t have.
Sustained overtime increases costs, fatigue, safety risk, and turnover.
Missed SLAs, late shipments, and backlogs can damage customer relationships quickly.
In these moments, contingency labor teams allow warehouses to respond immediately without committing to permanent headcount.
One of the biggest misconceptions is that contingency labor is simply “temps by another name.”
In reality, effective contingency labor models emphasize:
Instead of handing off responsibility to internal supervisors, managed contingency labor teams take ownership of productivity, safety, and consistency — reducing the operational burden on your core team.
FHI NOW was designed specifically to help warehouse and distribution operations stabilize quickly when labor challenges threaten throughput, safety, or service levels.
Rather than focusing on headcount alone, FHI NOW provides experienced, trained contingency teams supported by onsite leadership and proven operational processes.
This approach allows operations leaders to regain control — even in high-pressure situations.
Contingency labor fails when it’s treated as a last-minute fix instead of a strategic tool. Common pitfalls include:
The difference between success and frustration often comes down to how the contingency labor model is structured and managed.
Forward-thinking warehouse leaders no longer view contingency labor as an emergency expense. Instead, they use it to:
In today’s supply chain environment, flexibility is no longer optional — it’s a competitive advantage.
Contingency labor teams for warehouses are not about replacing full-time employees. They are about protecting operations when conditions change faster than hiring can respond.
When implemented with the right structure, leadership, and accountability, contingency labor becomes a powerful tool for stability, scalability, and long-term performance.
Contingency labor teams are scalable, on-demand warehouse labor groups deployed to support operations during short-term or unpredictable labor needs.
Contingency labor teams are typically managed, trained, and supervised onsite, while traditional temp staffing often provides individual workers without leadership or accountability.
Warehouses should plan for contingency labor ahead of peak seasons, volume surges, labor shortages, operational transitions, or expansion projects.
In many cases, contingency labor helps control costs by reducing excessive overtime, turnover, and service failures that result from understaffing.
Yes — when properly trained and managed, contingency labor teams can meet or exceed productivity and safety standards within warehouse environments.
👇📅 We're here to help. There's no pitch - just a conversation. 📅👇
If you need dependable support to reinforce your team and get you back on track, FHI NOW can help.
In any market, your supply chain can make or break your ability to compete well. Don't leave that to chance. We can help you create a stronger operation, so you never fall behind the competition.
Stop worrying about labor challenges and start enjoying a safe, lean, and rock-solid supply chain.
(800) 849-3132 | © FHI. All rights reserved.