Cleveland Warehousing & Distribution Labor Crunch Leads More to Lean on 3PL

Cleveland warehousing, distribution and fulfillment centers are grappling with a worsening labor shortage, some struggling to meet rising demands fueled in significant part by e-commerce. Nationally, it’s been a challenge that has businesses looking to launch or expand warehousing operations considering not just large consumer concentrations but an ample supply of qualified workers as well. Cleveland warehousing

CBRE, a commercial real estate and research firm, released recent analysis revealing the need nationally for an additional 226,000 warehouse workers this year and the same in 2019. That’s a 25 percent spike in the five-year annual average. Low unemployment is complicating matters. A smaller labor pool is smaller means higher wages.

Companies shopping Cleveland warehousing options soon learn this is a dynamic but mature market. Often, costs are more manageable when they team with an established Northeast Ohio third-party logistics firm. 

On Time Delivery & Warehouse’s Cleveland warehousing and distribution center is centrally-located and the network of our third-party logistics team is battle-tested and ever-evolving.

Cleveland Warehousing Workers With Experience

The U.S. Bureau of Labor reports the number of workers who have entered the logistics and transportation industries rose nearly 70 percent in a recent five-year span – more than any other industry sector. But it hasn’t been enough to meet increasing demands.

That’s made “automation” a term widely circulated in supply chain management circles of late. The CBRE estimates some industries saw productivity gains of more than 45 percent with certain automation, so the argument has merit. New technologies are incorporated here where they make financial and practical sense, though we also use tried-and-true standard technologies like goods-to-person, pick-to-light and automated storage and retrieval.

Our best asset though: Our people. Cultivation of a top-quality Cleveland warehousing team was important long before this labor shortage and will be long after. That’s why even as warehouse workers are in high demand, we’ve been able to keep pace and provide the best value to our customers.

Should I Outsource Cleveland Warehousing to a 3PL?

Those in business are likely familiar with the phrase, “Do what you do best and outsource the rest.” It’s popular especially in warehousing and distribution because often it makes the most financial sense, all things considered. Companies searching for warehouse space in Cleveland are increasingly concluding their best bet is partnering with a dedicated third-party logistics firm.

At On Time Delivery & Warehouse, we tailor our broad array of services and expansive networks to fit the needs of each customer – big and small – making sure our client gains are maximized.

The question of warehousing in-house vs. outsourcing requires careful consideration of competing and exceedingly complex factors, including:

  • Transportation costs;
  • Real estate economics;
  • Labor;
  • Speed to customer.

Keep in mind that payroll and other labor costs for a Cleveland warehousing operation is going to consume roughly one-fifth of your total supply chain costs. With final-touch distribution, it can easily gobble up three-fourths.

Companies are facing the prospect of ever-shrinking delivery windows and a shortage of resources in nearly every network. Even if they can get an order out the door in time, that may not be enough to maintain high customer confidence and satisfaction. Every order has to be perfect. That’s why many firms are increasingly turning to third-party logistics providers like One Time Delivery & Warehouse because that IS our business and what we do best.

If you have questions about Cleveland warehouse space and distribution 3PL partnerships, contact On Time Delivery & Warehouse by calling (440) 826-4630 or sending us an email.

Additional Resources:

The U.S. Supply Chain Quandary: Finding Enough Workers for an Expanding I&L Sector, 2018, CBRE

More Blog Entries:

Need Cleveland Warehouse Space? Start Searching Early!, Nov. 30, 2018, Cleveland Warehousing Blog

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