One way warehouses are reducing Costs is by using less hourly workers and more piecework workers

What is Piece Work?

Piece work is when a payment is made for a each unit* produced or action* completed.

Piecework vs. Hourly Employees?

For certain jobs hourly workers may perform the best, in the warehouse these jobs would include:

  • Workers that need to wait for drivers
  • Workers that needs to wait for orders
  • Workers that need to wait for clients

So typically hourly workers perform best when a warehouse needs workers to WAIT.

On the other hand Piecework workers are best suited for:

  • Quick container turnaround
  • time sensitive loads and unloads
  • Time sensitive pallet rebuilds
  • Quick Shifted Load fixes

Typically Piecework workers are best suited for jobs that need to completed quickly as pieceworker workers are paid per unit instead of per hour, so they have the incentive to get the job done quicker.  

How much are Warehouses Saving with Piecework?

Warehouses can see a cost savings of over 50% in certain jobs around the warehouse like Container Unloading, Container Loading, Transloading and more.

How much are Warehouses Saving with Piecework

The calculator above allows you to get an idea of the costs savings associated with use piece work and a flat rate with Lumper HQ. 

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