You’ve probably seen this situation happen at your warehouse dock before. A truck pulls into the bay right on time, but no one is there to receive the cargo. At this point, the clock starts ticking. The driver calls dispatch to learn more about the situation. Maybe they didn’t get the right address or arrival time? Nope, the driver did everything correctly.
Half an hour later, the cargo is still sitting on the truck. Another 2 hours pass before employees unload the cargo.
Does that sound like a minor inconvenience or a serious problem? The truth is that you just wasted a lot of time and money. In some situations, that one shift gap could cost more than a full day of dock labor.
The Dock Is Where Costs Hide
It’s easy to overlook the high cost of warehouse dock labor, but it adds up quickly because understaffed docks create chokepoints that affect everything downstream. When you don’t have enough staff, you slow down receiving, putaway, and order fulfillment. You lose much more than unloading time.
Given the many negative repercussions, it seems logistics workforce planning at the warehouse dock would receive more attention. Unfortunately, the costs go unnoticed because they don’t always fall under “staffing.” Instead, you end up with:
- High detention fees (often $30 to $50 per hour, or even $150 with some companies)
- Missed service level agreement (SLA) credits
- Overtime that roles over into the next shift
When you step back, it’s easy to see that poor dock staffing solutions can cost a lot of money. On top of that, they strain relationships with carriers. Nothing good happens when trucks sit idle.
The Labor Shortage Is Already at Your Dock
Labor shortages at the dock are more widespread than you probably think. A recent survey shows that 73% of logistics companies experience labor shortages. Nearly 60% of those companies say the shortages significantly impact operations.
Unfortunately, your company isn’t immune to this problem. It’s a systemic issue that affects hubs across the country.
If your warehouse doesn’t have effective dock staffing solutions, you create a weak point in operations and safety. When you’re understaffed, employees have to work harder and faster, putting them at risk of injury and lowering the chance that they can keep up with ongoing demands.
Even if your warehouse has managed to eke by without any major disruptions, you’re one injury away from falling behind.
What Reactive Dock Staffing Actually Costs
Let’s look at downstream expenses to get a better understanding of how understaffed docks can affect businesses.
When a truck waits for dock workers to unload cargo, detention fees start to accrue. Expect to pay $75 to $300 for demurrage. You can try explaining to the carrier that your staffing agency didn’t send enough people for the day, but that doesn’t change anything. You still have to pay the fee.
The problem only gets bigger from that point. Now that you have a truck sitting at one dock, you start missing appointments and forcing other carriers to wait. Now you’re paying rescheduling costs and carrier penalties.
Once workers get the cargo off the truck, you need someone to put it away. The first shift crew, however, is clocking off. That means the second shift has more work to do, which often turns into overtime lines.
It’s hard to see the accumulation because the costs are scattered across numerous invoices. Even when you spot the problem, it’s hard to find a solution.
Reactive vs. Proactive: What the Difference Looks Like
Often, the solution requires taking a proactive approach to workforce planning logistics. With a proactive approach, you account for changes in volume. For example, you plan to have more workers at the dock during seasonal peaks. Ideally, you find a staffing partner with enough logistics experience to assess your needs and maintain a roster of vetted workers ready to go.
A reactive approach doesn’t flow as seamlessly because no one plans for the future. At best, you might know how many dock workers you need 24 hours before the trucks arrive. That isn’t enough time to arrange for important orders. To make things worse, the workers who come to your location might not even know your processes or schedule. It turns into a hectic, chaotic mess.
What a Staffing Partner Built for Logistics Brings
The good news is that finding the right staffing partner resolves these issues by leveraging logistics to predict incoming cargo volumes and the number of workers needed to process the items.
Connect with HireQuest Direct today to learn more about how we can put our logistics and staffing experience to work for you.
