It’s the beating heart of your supply chain. It ensures your products get to customers on time, keeps inventory flowing, and can directly influence your profitability and reputation. But too often, businesses underestimate the sheer complexity — and true cost — of running a warehouse in-house.
From high turnover and training demands to safety compliance, productivity targets, and liability exposure, managing your own warehouse staff can drain critical resources that might be better used growing your core business.
That’s why more companies are exploring partnerships with warehouse management companies, especially through a strategy known as a warehouse takeover in place.
A warehouse takeover in place isn’t about shutting down or starting from scratch. It’s about bringing in specialized experts to step into your existing facility, processes, and workforce — and elevate them.
A takeover in place allows you to leverage the infrastructure and people you already have, while injecting proven best practices, technology, and performance-driven management. There’s no need to relocate, and no costly downtime. Your operation keeps humming while behind the scenes, it becomes smarter, safer, and more efficient.
Many companies believe keeping warehousing in-house is the most cost-effective approach. After all, why pay a provider’s bill rate when you can hire your own people at a lower hourly wage?
But that’s only half the story.
When you tally up the true costs, in-house operations are rarely cheaper — and often come with additional headaches.
A typical associate’s hourly wage is just the start. Layer on:
Health, dental, vision, and life insurance benefits
401(k) and retirement contributions
Paid time off and sick leave accruals
Payroll taxes and unemployment insurance
Workers’ compensation premiums
Recruitment, onboarding, and annual turnover costs
Ongoing training to keep up with best practices
The Bureau of Labor Statistics routinely shows that benefits add 30-40% on top of base pay.
Meanwhile, turnover in warehouse environments can run 40-60% annually, meaning you’re paying heavily just to keep roles filled.
When you outsource to a warehouse management company like FHI, these costs and administrative burdens are absorbed by your partner. You get one predictable bill rate, covering fully loaded, well-trained associates managed on-site — all while reducing your exposure to compliance and liability.
Warehousing is inherently high-risk. OSHA reports tens of thousands of injuries in the warehouse sector every year. Each incident isn’t just a human cost; it also comes with lost time, potential fines, and rising insurance premiums.
Managed warehouse providers bring rigorous safety programs, proactive coaching, and accountability systems that drive injury rates far below industry averages.
At FHI, for instance, safety isn’t an add-on — it’s foundational. That translates to fewer disruptions, fewer claims, and a stronger bottom line for you.
A takeover in place isn’t just about plugging holes. It’s about unlocking strategic advantages that fuel your growth.
No need to build a new facility or uproot your operation. A takeover in place respects the investment you’ve already made in real estate, racking, equipment, and even your people — while still unlocking efficiency gains.
Takeovers in place allow for a rapid deployment of new technology, performance standards, and lean methodologies without halting your operation. That means you can start seeing improvements in throughput, accuracy, and on-time performance almost immediately.
In today’s market, customers expect rapid fulfillment, flawless accuracy, and total transparency. By partnering with a warehouse management company that specializes in takeovers in place, you’re not just fixing problems — you’re building a high-performing distribution engine that can scale with demand and set you apart from competitors.
When your internal leaders spend their days dealing with labor scheduling, chasing down productivity issues, or managing workplace injuries, they’re not focusing on strategic growth.
They’re firefighting.
By outsourcing your warehouse operations through a takeover in place, your leadership team can redirect attention to core priorities like expanding into new markets, enhancing customer experience, or driving innovation.
It’s about letting experts handle the warehouse so you can concentrate on growing your business.
For more than 30 years, FHI has specialized in turnkey managed warehouse solutions, including seamless takeovers in place. We bring:
Dedicated on-site leadership to keep your operation running smoothly.
A production pay model that directly ties associate compensation to performance, increasing throughput and engagement.
Proven safety programs that exceed OSHA standards.
Transparent reporting and analytics so you always know your KPIs.
And perhaps most importantly: we make your warehouse not your headache.
Running a warehouse in-house might look cheaper on paper. But when you factor in the full costs, risks, and distractions, the math changes quickly.
A warehouse takeover in place by a dedicated partner like FHI can help you unlock the true potential of your operation — improving efficiency, reducing costs, and freeing your team to focus on what they do best.
Is your warehouse holding your business back?
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