Warehouses today are depending more and more on using 3rd party contractors for support to utilize their warehouse operations. Many distribution centers must choose to use lumper services for on site support or use temporary agencies. There are many benefits to using 3rd parties to optimize operations. Most warehouses these days are using lumpers service as they see the repetition of having the same employees in the workplace pays off with increased productivity and also with increased through puts. Having 3rd party agencies or lumper services also cuts down on overtime hours for the warehouse as they can cover their regular staff when they are starting to reach overtime on the clock.
Many large fortune 500 companies are using contractors to handle all warehouse operations or portions of warehouse operations. Benefits have gotten so expensive in this volatile economy that the benefits outweigh the cons. Also to increase productivity most of the lumper services pay by case, pallet, or load so this almost guarantees that the freight handlers will be productive. Labor is one of the biggest costs of warehouse and distribution services expenses and anything that can cut...
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