Osa Commerce
Labor shortages are a critical challenge for 3PL providers, disrupting operations and threatening growth. Discover how AI and unified commerce can turn this obstacle into an opportunity.
The Persistent Threat of Labor Shortages in 3PL
Labor shortages have been a significant issue for third-party logistics (3PLs) providers. For years, labor shortages were considered a seasonal headache. Now, they are a year-round business threat.
Why Mid-to-Large 3PLs Feel the Pinch More
Most mid-to-large 3PLs operate with multi-facility networks, high order volumes, and increasingly complex fulfillment demands. Labor shortages impact these operations in several painful ways:
- Slower order processing leads to missed SLAs
- Overtime costs eat into already thin margins
- Burnout and turnover make recruiting even harder
- Customer dissatisfaction puts long-term contracts at risk
For larger 3PLs with $20M+ in revenue, the stakes are even higher. These companies face higher fixed costs for facilities, systems, and management, as well as more complexity in coordinating inventory and workflows across multiple locations. Enterprise customers demand real-time data and greater visibility, adding to the complexity. The scale magnifies the impact of every labor gap, making it crucial for larger 3PLs to find more sustainable solutions.
Traditional Solutions Are Falling Short
Throwing more recruiters, sign-on bonuses, or temp agencies at the problem rarely solves it. Even if you find people, training takes time, turnover remains high, and costs keep rising. The solution is not just more people—it is smarter processes powered by technology.
Traditional approaches often fail to address the root causes of labor shortages and inefficiencies. They focus on short-term fixes rather than long-term solutions, leading to a cycle of recurring issues. What 3PLs need is a strategic approach that leverages technology to optimize operations and reduce dependency on manual labor.
Leveraging AI and Unified Commerce to Bridge the Gap
Comprehensive supply chain management solutions, like the Osa Collaborative Visibility Platform with artificial intelligence (AI) and unified commerce, are built to help mid-to-large 3PLs do more with less while maintaining accuracy and service levels.
The platform optimizes labor allocation in real-time, analyzes order volume, SKU locations, and carrier schedules to direct staff where they are most needed, reducing idle time and eliminating bottlenecks.
The Measurable Impact of AI-Enhanced Operations
Our 3PL partners with multi-warehouse operations have achieved remarkable results:
- 20% faster order processing with existing staff
- 3x operational savings through automation and optimization
- 99% inventory accuracy to reduce costly errors
- Lower overtime costs with improved employee retention
Why 3PLs Should Act Now
Labor shortages are not going away. Competition for warehouse and driver talent is increasing as e-commerce and omnichannel fulfillment grow.
The 3PLs that thrive will be the ones that can:
- Maintain service levels with leaner teams
- Use AI and automation to scale without proportional headcount growth
- Offer customers the visibility and flexibility that competitors cannot match
If your revenue is $20M+ and you are running at least two warehouses, Osa Commerce can help you turn labor shortages into a competitive advantage.
Protect Your Growth
You have built a strong business. Do not let a labor shortage stall it.
With Osa Commerce, you can optimize your workforce, improve efficiency, and keep your customers happy even in a tight labor market.
Book a demo with us and see how Osa can help your 3PL grow without waiting for the hiring market to catch up.
