If you've ever wondered what third party labor providers really do — and whether they're right for your warehouse or distribution center — you're not alone. In 2025, more supply chain leaders than ever are exploring this option to solve staffing challenges, stay competitive, and drive consistent productivity 📈.
Let’s break it down.
🤔 What is a Third Party Labor Provider?
A third party labor provider (3PLP) is an outsourced partner that supplies trained, reliable labor to support your warehouse or logistics operation. Rather than hiring all workers directly, you engage a company like FHI to handle recruiting, onboarding, training, and workforce management — often with on-site supervision.
Think of it as a plug-and-play labor solution, with built-in expertise and scalability 🔌.
💡 Why Warehouses Are Embracing 3PL Labor in 2025
More warehouses are choosing third party labor providers because they bring agility, accountability, and operational clarity. When peak season hits or demand suddenly shifts, 3PL labor partners can scale your workforce up or down without missing a beat. And since they manage recruitment, background checks, and training, your operations team gets precious time back — no more scrambling to fill shifts or train new hires on the fly.
Providers like FHI go far beyond simply sending people to work. They integrate deeply with your operations, using performance-based incentives and real-time tools like FHI INSITE™ to track productivity and ensure teams are meeting your KPIs. Safety isn’t an afterthought either — reputable third party providers lead the way in OSHA compliance, safety audits, and ongoing training.
And unlike revolving-door temp staffing, third party labor providers focus on building cohesive, reliable teams that reduce turnover and deliver long-term results.
🚧 What Makes Them Different from Temp Agencies?
This is a common question 🤯. While temp staffing agencies are built for short-term fixes — often sending untrained workers with little oversight — third party labor providers operate as strategic partners. They’re accountable for performance, safety, and retention, often managing labor more effectively than in-house teams.
When FHI deploys labor, it’s not about filling a gap. It’s about enhancing your entire warehouse operation from day one 💪.
🧠How Do You Know If It’s Time to Consider a Partner?
Ask yourself: Is your team stretched thin? Do you face recruiting or retention headaches? Does productivity dip during volume surges? If any of those sound familiar, it might be time to evaluate your labor model.
🟩 The Right Partner Changes Everything
Not all labor providers are created equal. At FHI, we’ve spent over 30 years helping warehouses and DCs operate more efficiently, safely, and profitably.
Partnering with the right third party labor provider isn’t about giving up control — it’s about gaining a trusted, scalable workforce that performs like your own.
Let’s connect for a complimentary operations review.
👇📅 We're here to help. There's no pitch - just a conversation. 📅👇