Why Smart Warehouses Pay for Output—Not Overhead

Ask any operations leader—warehouse labor costs are getting harder to control. Between overtime, downtime, turnover, and onboarding, you’re often paying for time… not results.

That’s why more businesses are moving to an output-based model with Acción Insource—where you pay for what gets done, not for hours on the clock.

The Problem with Traditional Labor Models

Hourly labor comes with real risks. When demand drops mid-shift, you’re still paying. If productivity slows, your labor costs don’t. And when overtime kicks in, margins shrink fast.

Add in recruiting costs, onboarding time, and turnover—and the overhead becomes massive. A recent Supply Chain Dive report shows warehouse labor costs are one of the fastest-growing operational expenses in supply chains today.

A Smarter Way: Cost-Per-Unit (CPU) Models

Our insource model changes the game. Instead of paying for hours, you pay for output—like packed orders, kitted products, or fulfilled shipments.

No overtime. No downtime. No surprise costs.

Just clean, transparent pricing tied directly to the work completed.

This model gives businesses the ability to:

• Lock in labor costs per unit, not per hour.

• Guarantee ship dates without runaway overtime.

• Scale labor up or down as demand shifts—with no long-term contracts.

• Eliminate the stress of hiring, training, and also turnover.

Need extra hands during peak? Our team arrives fully trained. When peak ends, we step away—no strings attached. Learn more about how this works in our guide to seasonal labor solutions.

Why This Works So Well

We’re not just managing labor—we’re also running the floor. Our supervisors handle training, onboarding, safety, and production management. We’ve managed our own facilities, so we know exactly what it takes to deliver output efficiently.

Think of us as your operational safety net. When demand spikes, we jump in. When it slows down, you’re not stuck paying for idle hands.

Curious how insource models compare to traditional outsourcing or temp labor? Check out Insourcing vs. Outsourcing in 3PL. 

The Bottom Line

Paying for output protects your bottom line, keeps costs predictable, and certainly removes the stress of labor management. When the floor runs smoothly, your team can focus on serving customers and growing the business.

Let’s Talk About Your Floor

Stop paying for overhead. Start paying for results. Connect with our team today and let’s build a smarter labor strategy for your warehouse.