When it comes to workforce staffing for distribution centers, the age-old tomayto/tomahto controversy also applies to “managed services” vs. “insourcing.” Both terms apply to New-Era’s staffing option that provides less cost and more flexibility than full 3PL outsourcing and delivers more knowledgeable, better trained workers and managers than a staffing firm.
No matter what you call it, there should be no debate that managed services/insourcing is a viable staffing alternative for many distribution centers. With managed services, your company has access to a high performance workforce, plus proven experience in engineering and process improvement, performance management consulting, productivity software, and training and organizational development.
How does it work? The managed service approach provides distribution center employees in much the same manner as a staffing firm, but the workforce is “pre-enabled” with core process and technology experience. The approach is scalable from a single work cell to an entire facility and can help transition your existing workforce into a skilled, productive team.
Our experience has shown that managed services can out-perform a staffing firm by 30% or more. So whether you say managed services or insourcing, for many companies this is a pretty compelling option from a financial and operational perspective…providing most of the value of a sophisticated 3PL at the cost and risk profile of a staffing firm. Check out our new white paper to find out how managed services could fit into your distribution center.
In the meantime, the tomayto/tomahto debate rages on…