4 Ways to Combat Labor Shortages as a 3PL

Over the last few years, companies all over the world have experienced significant labor shortages for reasons like more flexibility, better pay, and new priorities caused by the 2020 COVID-19 pandemic. Though labor shortages have been challenging for businesses to get through, 3PLs understand that the show must go on and their priorities must shift to continuously build up their customer base. It is important that as a business owner, you consistently implement new strategies to work toward combatting these grueling labor constraints.

Consider Consolidation

Often, companies will maintain separate fulfillment channels for both retail and e-commerce. With e-commerce growing rapidly since the 2020 pandemic, many businesses have noticed that having different warehouses combined with the current supply chain crisis and labor shortages are leading to chaotic inventories which in turn, increases cost. Deciding to consolidate warehouses can ultimately improve your fulfillment by gaining more visibility into your inventory, and having all your employees in one place where you will have an easier time keeping everyone on the same page.

Increase Automation

Meeting today’s fulfillment demands while using outdated systems and technologies is challenging, and can be even more difficult during a labor shortage. Due to the ever-increasing demands, high volume of e-commerce, and labor shortages, having automated processes within your business can be crucial to your bottom line. Implementing updated automations and technologies into your supply chain can help to prepare your fulfillment center to meet the rising customer demands and labor constraints. Additionally, these technologies can ensure your employees are equipped and ready to tackle any obstacles.

Incentivize Employees

When your business builds technical skills for your employees, it is important to keep in mind that when your employees learn new technical skills and gain more certifications, they will eventually become more marketable. Combining training with incentive programs can be a great way to not only cross train your employees but keep them engaged and impacted with what is happening in your company. It is important for your managers and leaders to help design these incentives to ensure it is fair and balanced and motivates employees to keep learning new skills.

Cross Train

For your employees, it is important that your business commits to developing and nurturing their skills and talents. Cross training your employees, getting them certified, and having them job shadow are just a few strategies that will help keep your team more engaged and well-rounded to better serve your business and keep your customers happy. Cross training your employees also helps during a labor shortage as your employees will be able to jump into different roles if needed or until your company has hired labor.

Finding the best strategy to combat labor shortages as a 3PL can be a demanding task if you’re not sure where to start. As a reputable 3PL with over 30 years of supply chain management, NewStream understands the difficulties caused by labor constraints. Equipped with the proper technology, our team is ready to take on your tasks so you can focus on your employees and love your supply chain while you’re at it!

Ready to fix your labor constraints? Let’s chat, our team is ready to help!