September Surges: How On-Demand Labor Keeps Inbound Shipments Flowing Without Overtime
As September hits, logistics and warehousing operations nationwide face a predictable yet punishing surge in inbound shipments. Trailers back up at the docks, pallets overwhelm crowded facilities, and teams stretch thin just to stay afloat. The data doesn’t lie: according to DC Velocity, warehouses see inbound volumes spike sharply starting in Q3, with early September marking a critical peak as companies load up for the holiday shopping season.
For operations leaders, the challenge is urgent and unavoidable: How do you handle these surges without exhausting your workforce or bleeding margins by overstaffing?
Overtime and Overstaffing: Expensive Band-Aids
The common playbook leans on overtime or overstaffing to manage surges. On paper, it makes sense: more hours, more people, faster flow. But in practice, these tactics inflate costs, drain teams, and keep leaders stuck in firefighting mode.
Overtime:
- Skyrocketing labor costs: With overtime wages at least 1.5x normal pay, having to constantly rely on OT during surges can quickly erode profit margins.
- Fatigue and mistakes: Overworked employees burn out, productivity dips, and costly errors rise, precisely when accuracy and precision are non-negotiables.
- Reactive by design: Overtime kicks in only after bottlenecks appear, leaving leaders constantly chasing problems instead of staying ahead.
Overstaffing:
- Inefficient utilization: Maintaining extra employees “just in case” may ensure surge coverage, but it also leads to underutilization during normal volumes. Additionally, staying slightly overstaffed might still not provide sufficient capacity during spikes, forcing costly overtime reliance.
- Fixed labor blot: Permanent labor adds wages, benefits, and overhead, whether even volume justifies it or not.
- Workforce rigidity: Overstaffed teams can create misalignment elsewhere in the operation, slowing overall throughput.
Relying on overtime or overstaffing treats the symptom, not the cause. These approaches drive up costs, reduce flexibility, and leave teams chasing yesterday’s bottlenecks instead of controlling today’s flow.
Precision and Flexibility: A Smarter Approach
This is where on-demand labor changes the game. Instead of locking into permanent hires or wearing down your core team with overtime, you gain a flexible workforce that deploys exactly where and when it’s needed. The payoff: a controlled, efficient operation that responds in real-time, before problems cascade.
How on-demand labor neutralizes September surges:
- Dock congestion: Trailers arrive in unpredictable waves, overwhelming dock teams. With on-demand labor, unloading crews can be deployed instantly to clear trailers before backups ripple downstream, eliminating the need to lean on overtime or overstaffing.
- Pick zone replenishment: Empty slots can stop fulfillment cold. On-demand labor ensures inventory is staged for pickers, keeping throughput steady, reducing errors, and taking the strain off core employees.
- Outbound surges: Once inbound stabilizes, outbound demand often spikes without warning. A dynamic labor pool pivots seamlessly from dock work to pick-and-pack, adding instant capacity without costly temps or extended hours.
Supporting Peak-Season Success Beyond the Docks
On-demand labor isn’t just a solution for inbound surges, it can support every stage of your operation during Q4.
Here's how:
- Packing and shipping support: As order volumes spike, on-demand labor can be deployed to packing, labeling, and staging outbound shipments, helping ensure on-time delivery without overloading your permanent team.
- Returns processing: When holiday returns surge, on-demand labor can assist with inspection, restocking, or reverse logistics to keep inventory flowing efficiently.
- Seasonal inventory prep: Preparing promotional kits, holiday bundles, or special displays can strain resources. On-demand operators can step in for assembly and staging for the exact duration needed, helping complete projects quickly without long-term staffing commitments.
- Overflow coverage for absenteeism: Cold and flu season often coincides with peak demand. On-demand labor can fill gaps immediately, keeping operations running smoothly despite unexpected absences.
- Cross-functional support: On-demand operators can pivot across roles—dock, picking, packing, or staging—allowing leadership to respond in real-time to shifting bottlenecks and changing priorities.
By leveraging on-demand labor across multiple functions, companies gain end-to-end peak-season resilience, keeping orders moving, protecting permanent staff from burnout, and reducing reliance on overtime.
Real-Time Impact on Metrics
On-demand labor doesn’t just improve operations in theory, it delivers measurable, quantifiable results.
Rate of Inbound Shipments Processed On-Time:
When unloading crews are deployed in real-time to handle inbound surges, trailers spend less time waiting at the dock. This prevents inbound congestion from cascading into downstream delays, keeping orders on schedule. One of our partners, Customized Distribution Services, increased the rate of inbound shipments processed on time by 35.7% in just a few months.
Pick Zone Throughput:
Proactively replenishing pick zones with flexible labor ensures that inventory is always available for order fulfillment. Operations that implement on-demand support routinely see double digit increases in picking throughput while reducing the likelihood of stockouts or errors. This directly improves order fulfillment rates and minimizes customer-impacting delays.
Overtime Utilization:
By addressing bottlenecks with flexible, real-time support instead of overloading the core team, facilities can significantly reduce overtime hours. One of our partners, ShineOn, was able to reduce Q4 overtime expenses from $350k to $30k by building a labor pool, freeing funds for other operational needs while protecting core employees from fatigue and burnout.
On-Time Delivery:
Surges at the dock don’t just cause internal headaches, they put customer commitments at risk. When inbound trailers sit idle or pick zones aren’t replenished quickly enough, outbound orders inevitably fall behind schedule. On-demand labor eliminates these delays by ensuring that each step of the process—from unloading to picking to packing—has the capacity it needs in real time. This helped Core Mark increase on-time dispatches by 10% while facing 27% higher demand than normal.
Labor Efficiency and Cost Per Unit:
On-demand labor allows operations leaders to right-size headcount to real-time demand, avoiding the costs and risks of both overstaffing and understaffing. This improves labor efficiency by ensuring that every hour worked contributes directly to throughput, while minimizing wasted costs associated with idle staff or unnecessary overtime. For example, Scentsational Soaps and Candles, one of our partners, reduced Q4 labor costs 15% by taking this approach.
The Bottom Line
September surges don't have to mean chaos at the dock. By leveraging on-demand labor, operations leaders can:
- Maintain consistent inbound and outbound flow, preventing bottlenecks before they cascade.
- Reduce reliance on costly overtime, and save on peak season labor spend.
- Boost key performance metrics, including dock-to-stock cycle time, picking throughput, order fulfillment accuracy, and more.
- Increase workforce flexibility and morale, protecting core employees from burnout while scaling capacity in real time.
In modern warehouse operations, Q4 success belongs to those who can flex and adapt, not just hire. On-demand labor turns labor into a strategic advantage, giving operations leaders the ability to tackle surges proactively, maximize throughput daily, and deliver world class service under any demand scenario.
To Learn More About How On-Demand Labor Can Help You Maximize Q4 Peak Season Performance, check out these articles:
- Capitalizing on Q4 Opportunities: How Forward-Thinking Business Leaders Are Scaling Smarter
- Outperform When It Counts: How Ops Leaders Are Owning Peak Season With On-Demand Labor
- How 3PLs Can Crush Peak Season KPIs Without Overstaffing or Overtime
- The Key to Q4 Peak Season Success in Consumer Products - Labor Flexibility
- Scaling For Peak Season: Why On-Demand Labor is a Game-Changer for E-Commerce, Logistics, and Packaging
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