Why Are More 3PL Warehouse Companies Using Third Party Labor Providers? [Top 7 Reasons You Should Too] 🤔

If you lead a 3PL warehouse operation today, you already know: labor is one of your biggest variables—and one of your biggest risks. ⚠️

That’s why more and more 3PL warehouse companies are turning to third party labor providers to strengthen operations, improve flexibility, and drive profitability. 📈

But is this model right for your facility?
And why are so many leading 3PLs making the switch?

Let’s explore the Top 7 reasons smart 3PL leaders are leaning into this approach. ✅


1️⃣ Flexibility to Match Variable Volume 📦

No one knows demand variability like a 3PL.
One month you're onboarding new clients—next month one of them pulls back.

Third party labor providers offer the flexibility to scale labor up or down without permanent hiring/reduction cycles. This lets 3PLs:

Stay lean when volume dips

Ramp up quickly when new clients come on board

Avoid paying for idle capacity during slower periods


2️⃣ Shift Consistency Across Multi-Client Operations 🏆

Managing multiple clients in one facility adds complexity—especially when each client has different SLA requirements.

Third party labor providers bring:

Trained, shift-ready teams

Consistent performance across shifts

Leadership to manage performance even during nights & weekends


This helps 3PLs deliver reliable outcomes for all clients, regardless of shift or time of day.


3️⃣ Reduced Internal Management Strain 🧑‍💼

Your ops team needs to focus on client relationships, contract execution, and value-add services—not chasing down daily labor issues.

With a third party labor partner:

Onsite leads handle day-to-day coaching and accountability

Your team gets more time to focus on higher-value work

Leadership stress and burnout are reduced


4️⃣ Improved KPI Alignment 🎯

The best third party labor providers align performance with your contract SLAs and operational KPIs:

Units per hour

On-time outbound percentages

Order accuracy

Safety compliance


This turns your labor partner into a true extension of your operation, not just a vendor filling seats.


5️⃣ Enhanced Safety and Compliance 🦺

3PL clients expect strong safety performance—and poor results can lead to lost contracts.

Leading third party labor providers deliver:

Comprehensive onboarding and safety training

Daily safety huddles

Ongoing coaching and risk mitigation

Strong safety culture built into labor teams


👉 This protects both your facility and your brand reputation.


6️⃣ Faster Peak Ramp-Up 🚀

Many 3PLs live and die by peak performance.

Third party labor partners can:

Build bench strength in advance of forecasted peaks

Deploy pre-trained teams quickly

Reduce reliance on temp staffing during crunch periods

Maintain consistency and quality even during high-volume windows


7️⃣ More Predictable Labor Costs 💲

Using a third party labor model allows 3PL warehouse companies to:

Move away from unpredictable overtime cycles

Control costs through structured contracts

Pay for performance, not just time on the clock

Reduce hidden costs tied to turnover and training


In a margin-sensitive 3PL environment, this predictability is a major competitive edge. 💪


Is It Time to Explore Third Party Labor for Your 3PL? 🤔

If you’re wrestling with labor volatility, rising costs, or inconsistent shift performance—you’re not alone. Many of your peers are solving these same challenges by partnering with a trusted third party labor management provider.

Want to explore whether this model fits your operation?

👉 We offer a complimentary 3PL Labor Optimization Briefing—zero pressure, just insights.

The right labor strategy can help your 3PL operation run leaner, stronger, and more competitively. 🚀

Schedule your briefing today. 

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