Warehouse Takeover in Place, often called TOIP, is a strategic approach where a managed labor provider assumes responsibility for warehouse operations directly within an existing facility—without the disruption of moving locations or pausing production.
Instead of outsourcing to an off-site 3PL or bringing in new management structures, TOIP focuses on seamlessly embedding experienced warehouse labor professionals into the current operation. This allows organizations to immediately improve efficiency, safety, and cost-effectiveness while maintaining continuity for both the workforce and the customers they serve.
The process of implementing a TOIP model typically follows a structured path:
The rise of TOIP can be attributed to the increasing complexity of supply chains and the pressure distribution centers face to meet customer demands. Some of the biggest drivers include:
Organizations choosing TOIP often see measurable improvements within weeks of implementation. Common benefits include:
As supply chains become more complex and customer expectations continue to rise, TOIP is proving to be a reliable, scalable model for distribution centers of all sizes. The ability to embed a managed labor partner directly into existing operations offers a unique blend of stability and innovation—helping warehouses meet today’s challenges while preparing for tomorrow’s opportunities.
👉 At FHI, we’ve seen firsthand how TOIP transforms operations from the inside out. With decades of experience in managed warehouse labor, our teams help companies achieve efficiency, safety, and scalability—all without the disruption of starting over.
What is a Warehouse Takeover in Place (TOIP)?
TOIP is when a managed labor partner assumes responsibility for day-to-day warehouse operations within your existing facility—without shutting down, relocating, or switching WMS. The partner embeds on-site leadership, standardizes processes, and drives productivity, safety, and cost control in place.
How does TOIP differ from outsourcing to a 3PL?
Traditional 3PLs typically take custody of inventory and operate under their own network and facilities. TOIP keeps your facility, systems, and ownership structure intact while embedding an on-site managed labor team to improve performance inside your current operation.
Will TOIP disrupt my current operations?
No. TOIP is designed to maintain continuity. A structured transition plan phases in new leadership, labor standards, and reporting while work continues. Most facilities see steady-state performance during transition and measurable improvements shortly after.
How long does a TOIP transition take?
Typical transitions range from 2–8 weeks depending on facility size, shift structure, and scope. Discovery and planning happen first, followed by phased onboarding, standards rollout, and real-time performance monitoring.
What KPIs improve under TOIP?
Common lifts include higher cases-per-labor-hour, faster dock-to-stock, reduced cost-per-unit handled, improved on-time departures, fewer safety incidents, and tighter labor variance vs. plan.
Do we retain control of inventory, systems, and compliance?
Yes. You retain ownership of inventory, WMS/TMS systems, and compliance accountability. The TOIP partner provides on-site leadership, trained labor, standard work, and transparent reporting to meet your requirements.
What happens to our existing workforce?
Current associates are evaluated and, when appropriate, onboarded under new leadership and standards. The TOIP partner supplements with additional trained staff as needed to meet volume and service goals.
How is pricing structured for TOIP?
Pricing typically combines a transparent labor rate with performance expectations and SLA targets. Many operations adopt production or incentive pay models that align labor spend with throughput and quality results.
Is TOIP compatible with union or multi-shift operations?
Yes. TOIP models are tailored to local requirements and shift patterns, and can align with collective bargaining agreements while introducing standard work and safety practices across all shifts.
How is performance tracked and reported?
Your partner implements real-time dashboards and daily/weekly reviews covering throughput, labor hours, quality, safety, and service metrics. Leadership huddles and continuous improvement routines keep results on track.
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