Optimizing Labor Management for 3PLs and E-Commerce: Insights from iJility’s Valentine Trent

Optimizing Labor Management for 3PLs and E-Commerce: Insights from iJility’s Valentine Trent

Labor management is one of the most critical—and often misunderstood—aspects of third-party logistics (3PLs) and e-commerce fulfillment. In a recent episode of Disruptive Minds, Bill Carlin, CMO of Racklify, sat down with Valentine Trent from iJility to discuss how 3PLs and e-commerce sellers can optimize labor strategies to boost efficiency, cut costs, and scale effectively during peak seasons.

The Biggest Labor Challenges in Warehousing & Fulfillment

For 3PLs and e-commerce businesses, labor planning isn't just about adding more workers—it’s about finding the right balance between full-time staff, seasonal hires, and automation. Trent highlighted one of the most common misconceptions:

"Operators think more bodies mean more productivity, but that’s not necessarily the case. Many carry labor throughout the year when they don’t need to, paying high costs even in slower periods."

During peak season, many companies scramble to ramp up headcount, leading to massive expenses and inefficiencies. Trent explained that finding the right labor mix—including strategic use of temp labor and workforce incentives—can prevent unnecessary costs while maintaining productivity.

The True Cost of Poor Labor Planning

One of the biggest mistakes in labor management is underestimating the cost of inefficiency and rework. Trent emphasized how low-quality labor can lead to higher costs in the long run:

"If you bring in untrained labor or fail to provide proper oversight, you might see more mistakes. Those errors lead to costly rework, customer complaints, and even lost business."

For e-commerce sellers, even a small increase in return rates can severely impact margins, especially when selling through platforms like Amazon. For 3PLs, inaccurate fulfillment can be devastating due to razor-thin margins.

"A 2-3% error rate can be catastrophic because the cost of a return is significantly higher than the profit from a single pick."

This is why top 3PLs maintain a 99%+ accuracy rate—mistakes simply aren’t affordable.

How Incentive Programs Boost Productivity

One key solution discussed was implementing labor incentive programs. Rather than relying solely on hourly wages, businesses can tie productivity, quality, and attendance to performance-based bonuses.

"When employees feel like they control their earnings through performance, engagement goes up. This is a major advantage over traditional temp labor models."

Trent pointed out that incentive-based pay structures often result in higher efficiency and better retention rates, which directly benefit 3PLs and fulfillment centers.

Technology and Data-Driven Workforce Planning

Beyond labor incentives, technology plays a crucial role in optimizing labor management. Many 3PLs and fulfillment centers still rely on manual scheduling and outdated workforce planning methods. Trent shared how iJility uses industrial engineers to conduct time and motion studies to determine the most efficient labor strategies:

"We analyze operations and set a guaranteed, fixed labor rate, often saving our customers 10-20% while increasing output by up to 30%."

By leveraging workforce data, businesses can anticipate labor needs, reduce waste, and make smarter hiring decisions—especially when scaling for peak seasons.

Final Thoughts: Finding the Right Labor Partner

One of the biggest takeaways from the conversation was the importance of choosing the right labor partner. Many businesses have negative experiences with temp labor and decide to handle everything in-house, leading to higher costs and inefficiencies.

"Not all labor solutions are the same. It’s about finding a partner that understands your business and integrates into your operations, not just throwing bodies at the problem."

With the right balance of full-time staff, temp labor, incentives, and technology, 3PLs and e-commerce sellers can optimize their workforce while keeping costs under control.

Watch the Full Interview

To hear the full discussion, check out the latest episode of Disruptive Minds with Valentine Trent of iJility:

🎥 Watch the episode here