One of the main challenges for a warehouse manager is to match labor hours with work content. Handling a product in the least amount of time possible leads to reduced labor hours and, as a consequence, reduced cost. Depending on the operation, labor can be the single biggest cost within a warehouse. It can be between 48 and 60 per cent of the total warehouse cost depending on the amount of automation utilized. It is also the most difficult cost to control. In-handling makes up approximately 20 per cent of the total direct labor cost within a retail warehouse.
In the case of temperature-controlled goods, it is important to consider how the handling activities are managed, particularly when loading vehicles that are compartmentalized and thus capable of transporting goods at different temperatures. For example, loading the vehicles at three different loading docks (eg at ambient, chill and frozen temperatures) may be very time-consuming, whilst loading at a single loading dock will require close control to ensure that the temperature chain is maintained.
