Fulfillment Centers Look to Mitigate the Impact of Employee Turnover
Warehouse employment is the single most expensive component of a fulfillment process. If your logistics partner does not take actions to decrease warehouse turnover, this cost can soon spiral out of hand. Consider that replacing a single warehouse employee might cost up to $10,000. Given the high turnover rate in the warehousing industry, those expenses will soon escalate into the millions for a 3PL with many fulfillment facilities. One of the primary advantages of employing a fulfillment 3PL is the transfer of responsibilities for labor management. However, your fulfillment supplier can only absorb so much of its labor costs before passing the rest on to you. So, to avoid having your rates negatively impacted by bad labor practices, inquire with your fulfillment partner about what they are doing to enhance staff retention at the warehouse. Moreover, if a 3PL provider wants to optimize employee turnover, there are few things that they can consider doing. 1. Improve App...