What Is a “Third Party Labor Management Provider”? (And Should You Be Using One?)

If you’ve been researching ways to stabilize your warehouse workforce or improve shift productivity, you’ve probably come across the term:

👉 “Third party labor management provider” 👈

But what exactly does that mean? And more importantly—should your operation be using one?

Let’s break it down in plain English so you can decide if this model fits your goals.


First—What Is a Third Party Labor Management Provider?

In simple terms, a third party labor management provider is a partner that takes full responsibility for managing a portion (or all) of your warehouse workforce. This goes far beyond what a temp agency does.

A true labor management provider will:

✅ Recruit and hire associates
✅ Train them to meet your standards
✅ Manage them onsite (with supervisors and leads embedded in your facility)
✅ Track performance aligned with your KPIs
✅ Handle turnover, coaching, and workforce scaling

👉 Think of it as having an extension of your leadership team—fully focused on delivering consistent labor results.


How Is This Different from Using Temp Staffing?

Many operations leaders mistakenly assume that a third party labor management provider is just another name for a temp staffing agency. But the difference is huge. 🚀

Here’s how they compare:

A temp staffing agency simply sends individual workers to fill your open shifts. You are still responsible for supervising them, coaching them, and driving their performance.

A third party labor management provider sends a fully managed team—complete with onsite supervisors and leads who handle coaching, accountability, and day-to-day performance.

With temp staffing, workers can vary from shift to shift, and there is little to no long-term planning. A third party labor management provider focuses on workforce stability, training consistency, and helping your facility hit its long-term KPIs. 🎯


In short:

👉 Temp staffing helps you fill seats.
👉 A third party labor management provider helps you run a high-performing operation.


When Should You Consider Using One?

A third party labor management provider isn’t the right fit for every operation. But here are some common signs it may be time to explore one:

✅ You’re struggling with turnover or inconsistent attendance
✅ Supervisors are spending too much time managing frontline labor
✅ You experience seasonal swings in labor demand
✅ You need to improve shift consistency and output
✅ You want more visibility and accountability from your labor model

If any of those sound familiar, you’re not alone. Many of today’s top distribution centers are turning to managed labor solutions to stay competitive. 💪



Benefits of Working with a Third Party Labor Management Provider

Stabilized workforce with lower turnover

Less stress on your internal leaders

Improved safety through consistent training and oversight

Aligned performance across shifts and seasons

Scalability to match labor with demand peaks


In short—you get the labor force you need, with less risk and more control.


Is It Right for Your Operation? Let’s Talk.

If you’re wondering whether a third party labor management provider makes sense for your facility, we’d be happy to help.

👉 We offer a complimentary Workforce Strategy Session to assess your current model and show you what’s possible.

No obligation—just answers. 📈

The right labor partner can transform your operation.

Let’s explore if now is the right time to take the next step.

👇📅 We're here to help.  There's no pitch - just a conversation. 📅👇