Hard physical labor, numbingly boring tasks, continuous deadlines warehouse workers face down stress every day. The challenge is figuring out how to keep stress from flaring up into burnout.
For the average distribution center worker, it's another day, another hefty dose of job stress. You walk in the door and your brain shifts right into overload—trailers have arrived early and the unloading's already behind schedule. Or you're assailed by a supervisor reminding you that pick times will be closely monitored today because of an unusually tight schedule. Or the trucks are late and there's nothing to do but wait for the inevitable crunch. Or you're ordered to cover for someone who's out with the flu but can't get anyone to tell you precisely what you're supposed to do.
And even if you did know exactly what you were supposed to be doing, all too often you can't count on getting the tools and help you need. Two of the four lift trucks are out of commission. Cramped aisles make it impossible to move inventory and equipment around. Vacancies and absenteeism have left the facility pitifully understaffed. You're feeling the strain—both physical and emotional—and nobody seems to care.
No wonder between 20 and 75 percent of all warehouse workers leave their jobs within one year of their hire date. Though some learn to tolerate the stress, huge numbers succumb to the work fatigue. Those burned-out employees eventually respond in one of two ways: they try to wrest more control over the situation or they leave (think fight or flight).
Filling the vacancies can be both difficult and expensive—the cost of replacing a single employee is estimated to be in the thousands of dollars. Alarmed by the high turn over, distribution center managers from Klickitat to Kittery are looking for ways to fight stress and hold on to their workers.
But to fight stress, you have to understand what causes it and who's most affected. For that, we went right to the source, surveying 667 workers in seven distribution centers (see sidebar for a look at the respondent pool). Specifically, we wanted to know the following: How bad is the stress and burnout? Do stress and burnout levels vary based upon employee job tenure, overall job experience in the industry, work shift (early/day/late), or job status (full-time, part-time or temporary)? And most important of all, what can be done about it?
As bad as it gets?
To get an idea of how much stress DC workers are under, we asked survey participants seven questions related to pressures of the workplace— how often they had "been upset because of something that happened at work," for example, or how often they "found that they could not cope with all of the things they had to do." Stress levels were measured on a scale of 1 to 7—1 = never and 7 = every day. Researchers then averaged the numeric scores for each employee's answers to compute an overall stress score for that individual.
We conducted the "burnout" survey in much the same way. Participating employees were asked nine questions such as how often they "felt used up at the end of the workday," "failed to make an effective contribution to the organization," and "felt emotionally drained from [their] work." Responses were again scaled from 1 to 7, with 1 = never and 7 = every day. The respondents' answers to the nine questions were summed to create an overall burnout score for each employee.
Overall, respondents reported feeling a moderate level of stress— 3.53 on a scale of 1 to 7, indicating that they typically experienced stress a few times per month.Most of the stress appeared to derive from what we termed demand related factors—inability to control their immediate work environment or to manage unexpected events. Workers seemed to take problems caused by a lack of resources much more in stride.
The overall burnout score didn't lag too far behind. Workers reported experiencing burnout symptoms on a regular basis (3.43 overall on a scale of 1 to 7), as well. Burnout among distribution center employees most often takes the form of emotional exhaustion—the statement "I'm emotionally drained by my work" resonated loudest among workers. Survey respondents also reported that they felt inadequate or detached on a pretty regular basis.
Feeling the burn(out)
But not every stressed worker falls victim to burnout. Some segments of the workforce continue to function normally even as their colleagues succumb to the stress. What accounts for the differences? Does job tenure, for example, affect a worker's susceptibility? How about work experience, work shift (daytime or nighttime) or job status (full time, part time or temporary)? In hopes of identifying factors that increase the risk,the research team conducted four separate analysis of variance (ANOVA) tests. What follows is a summary of the sometimes surprising results:
Job tenure. Researchers divided the respondents into three groups based on tenure in the current job—less than two years, two to five years, and more than five years. Though you might ex pect the trend line to move steadily in one direction (say, up), the results actually showed that job stress decreased significantly after two years of employment—from 4.44 for those who had been on the job less than two years to 2.78 for those with two to five years' tenure. However, as DC employees pass their five-year anniversary with the same employer, job stress levels climb again.
By contrast, burnout steadily decreased overtime. Workers with less than two years' tenure reported significantly higher levels of burnout symptoms (4.64) than those with two to five years on the job (3.66) or those with more than five years (2.21).
Why does the pattern change so abruptly at the five-year mark, with burnout levels continuing to drop while stress re-escalates? Stress may rise at that point because of added responsibility or deteriorating relationships with co-workers. As for declining burnout levels, it may be that employees develop coping mechanisms over time—they learn to handle stress or they simply decide to live with it. It's also possible that as time passes, these employees begin to feel "institutionalized"—that is, they begin to feel that they're an integral part of the organization (or the work group) and spend less time worrying about being fired, reprimanded or demoted. But it's more likely that the burnout drops over time simply because many quit. The problem (stress) is still there, but burnout is lower because some of the employees have gone.
Work experience. Does overall distribution center work experience (all experience—not just time on the current job) influence job stress and/or burnout? To find out, researchers divided respondents into three groups based on their total years of distribution center experience: workers with less than five years' experience, with five to 10 years of experience, and with over 10 years' experience, and compared their total stress and burnout scores.
What they found was that up to the 10-year mark, job stress and burnout levels remained relatively static. However, after the 10th year of experience, burnout levels declined significantly (to 3.05 from 3.78), while job stress levels rose significantly (to 4.02 from 3.33). The increase in stress later in the career may be caused by physical strain related to aging, increased stress related to increased responsibility or the inability to cope with changes in the work environment. The decline in burnout later in the career may indicate increased ability to manage job stress or simply that some burned-out employees leave.
Work shift. Are some job shifts more stressful than others? It looks that way. Though workers assigned to the early shift (basically the traditional 8-to-5 workday) and the overnight shift (any shift that begins after 5 p.m. and lasts until after midnight) reported moderate levels of both job stress and burnout, employees working the mid-shift (any shift that begins in the afternoon and lasts late into the evening) reported significantly higher levels of job stress and burnout.
There are a number of possible reasons. Traditional shift workers can usually count on their work day following a ro utine—when they arrive in the morning, they know what tasks they can expect —picking, packing, loading or unloading. Stress arising from unexpected events tends to be minimal. Early-shift workers can also expect to work under the guidance of a full supervisory staff and with a full complement of co-workers for help. Overnight shift workers also reported relatively low stress levels—albeit for very different reasons. DCs often hire these workers to create work teams that come in very late or very early to perform a specialized task. The uniqueness of the task, smaller workforce and unusual hours can create camaraderie among workers that helps to reduce stress.
Mid-shift workers, by contrast, often come in while the early-shift workers are still around but stay long after they've left. Fewer managerial personnel are available for guidance. This crew often experiences volatility in workrelated demand—they may be assigned to complete whatever tasks were not finished by the early shift in addition to their regular responsibilities. There generally are fewer midshift workers than early-shift workers. As a result, they're much more likely to be randomly assigned to unfamiliar tasks or given responsibilities that they consider someone else's jo b. These factors, in addition to the added st ress o f working hours that are generally reserved for life outside the workplace,may explain the peaks in both job stress and burnout relative to early and overnight shifts.
Employment status. Is it more stressful to be a full-time worker than a part-time employee? Or a temporary/summer worker than either of the others? Though we found only minor differences in job stress and burnout between the full-time and part-time distribution center workers, temporary/summer workers reported much higher stress levels than the other two groups. Temps are often given a variety of unrelated short-term assign m ents to cover immediate demand or replace workers who are on leave. The wide variety of tasks performed and/or the uncertainty of expectations related to daily tasks may create stress.
Though stressed, temporary/summer workers are much less likely to experience burnout than regular full- or parttime employees. That's not surprising. They're aware that their positions, and therefore their stresses, aren't permanent. They may be miserable, but they know there's an end in sight.
Redress for stress
Understanding the reasons behind workplace stress is one thing; doing something about it is another. Generally the solutions involve some combination of psychological rewards, training, raising self esteem and more sensitive management.
What can managers do? Our study didn't address this question, but based upon the current research and our professional work experience, we believe workplace stress can be greatly reduced if managers provide the following:
More training. Improved skills can lead to a greater sense of accomplishment. Plus, the right type of training will better prepare workers to handle unexpected events.
More control over the work environment. Delegating responsibility to workers cuts down on their stress. Empower workers to develop best practices and/or change their job designs.
Clear and precise definitions of job responsibilities. Identify the scope of the job and the expectations. Specify exactly what performance measures will be used.
Relief from boredom. You can ease the tedium by instituting cross-training, varying their tasks and responsibilities or instituting periodic job rotations.
Recognition of individual accomplishments. Don't stint on feedback and praise. And let your stars shine: Post weekly performance measures in the break room, including employee names, goals and achieved performance.
A sense of place. Workers want to know how their efforts contribute to the larger goals. Emphasize that work is a team effort. Encourage team meetings and mentoring.
R&R. Organize recreational activities outside of work—a softball team or a bowling league. Not everybody's an athlete, of course. But then again, laughter can be a great stress reliever.
study group
The survey data, of course, don't reveal how the largely male respondents felt about filling out a multipart questionnaire that focused on their feelings. Nonetheless, a total of 667 employees participated in the study, which was conducted in seven distribution centers in Georgia, Oklahoma, Pennsylvania and Texas. In exchange for their participation, employees, who completed their questionnaires during their coffee breaks or lunch periods, had a chance to enter a cash lottery drawing.
The respondent pool's demographic profile is fairly typical for the warehousing industry. About three-quarters of the respondents (74 percent) were male. Ages ranged from 18 to 65, with most (78 percent) participants falling between 25 and 44. The respondents were a racially diverse group—43 percent white, 19 percent black, 13 percent Hispanic, 11 percent Asian—and fairly well educated: Four out of five participants had at least a high school diploma, and nearly one-third (29 percent) had attended at least some college.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."
First, 54% of retailers are looking for ways to increase their financial recovery from returns. That’s because the cost to return a purchase averages 27% of the purchase price, which erases as much as 50% of the sales margin. But consumers have their own interests in mind: 76% of shoppers admit they’ve embellished or exaggerated the return reason to avoid a fee, a 39% increase from 2023 to 204.
Second, return experiences matter to consumers. A whopping 80% of shoppers stopped shopping at a retailer because of changes to the return policy—a 34% increase YoY.
Third, returns fraud and abuse is top-of-mind-for retailers, with wardrobing rising 38% in 2024. In fact, over two thirds (69%) of shoppers admit to wardrobing, which is the practice of buying an item for a specific reason or event and returning it after use. Shoppers also practice bracketing, or purchasing an item in a variety of colors or sizes and then returning all the unwanted options.
Fourth, returns come with a steep cost in terms of sustainability, with returns amounting to 8.4 billion pounds of landfill waste in 2023 alone.
“As returns have become an integral part of the shopper experience, retailers must balance meeting sky-high expectations with rising costs, environmental impact, and fraudulent behaviors,” Amena Ali, CEO of Optoro, said in the firm’s “2024 Returns Unwrapped” report. “By understanding shoppers’ behaviors and preferences around returns, retailers can create returns experiences that embrace their needs while driving deeper loyalty and protecting their bottom line.”
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
Keith Moore is CEO of AutoScheduler.AI, a warehouse resource planning and optimization platform that integrates with a customer's warehouse management system to orchestrate and optimize all activities at the site. Prior to venturing into the supply chain business, Moore was a director of product management at software startup SparkCognition. He is a graduate of the University of Tennessee, where he earned a Bachelor of Science degree in mechanical engineering.
Q: Autoscheduler provides tools for warehouse orchestration—a term some readers may not be familiar with. Could you explain what warehouse orchestration means?
A: Warehouse orchestration tools are software control layers that synthesize data from existing systems to eliminate costly delays, streamline inefficient workflows, and [prevent the waste of] resources in distribution operations. These platforms empower warehouses to optimize operations, enhance productivity, and improve order accuracy by dynamically prioritizing work continuously to ensure that the operation is always running optimally. This leads to faster trailer turn times, reduced costs, and a network that runs like clockwork, even during fluctuating demands.
Q: How is orchestration different from a typical warehouse management system?
A: A warehouse management system (WMS) focuses on tracking inventory and managing warehouse operations. Warehouse orchestration goes a step further by integrating and optimizing all aspects of warehouse activities in a capacity-constrained way. Orchestration provides a dynamic, real-time layer that coordinates various systems and processes, enabling more agile and responsive operations. It enhances decision-making by considering multiple variables and constraints.
Q: How does warehouse orchestration help facilities make their workers more productive?
A: Two ways to make labor in a warehouse more productive are to work harder and to work smarter. For teams that want to work harder, most companies use a labor management system to track individual performances against an expected standard. Warehouse orchestration technology focuses on the other side of the coin, helping warehouses "work smarter."
Warehouse orchestration technology optimizes labor by providing real-time insights into workload demands and resource availability based on actual fluctuating constraints around the building. It enables dynamic task assignments based on current priorities and worker skills, ensuring that labor is allocated where it's needed most, even accounting for equipment availability, flow constraints, and overall work speed. This approach reduces idle time, balances workloads, and enhances employee productivity.
Q: How can visibility improve operations?
A: Due to the software ecosystem in place today, most distribution operations are highly reactive environments where there is always a "hair on fire" problem that needs to be solved. By leveraging orchestration technologies, this problem is mitigated because you're providing the site with added visibility into the past, present, and future state of the operation. This opens up a vast number of doors for distribution leadership. They go from learning about a problem after it's happened to gaining the ability to inform customers and transportation teams about potential service issues that are 24 hours away.