Aug 17, 2016 in Wages

Here’s A Proven Strategy to Actually REDUCE Them (By 30%!)

With the peak shipping season upon us, it’s hard to focus on anything other than ensuring the on-time delivery of products to e-commerce customers, customer distribution centers and stores for the holiday season. But while the supply chain team is focused on assuring positive holiday customer experiences, the finance team at most companies has started the 2017 annual budgeting process. Are your CEO and CFO demanding cost reductions… again!?

Until now you were worried that you were going to be the bearer of bad news. You were aware of the coming cost pressures from:

  • Minimum Wages will be increasing. In fact, eight states* will have minimum wage increases effective on or about January 1, 2017. And, if you happen to operate in, or utilize a 3PL in California, you’ll experience an additional $.50 an hour increase, on the heels of a $1.00 increase earlier this year, with an additional 42% increase coming over the next five years! That’s a 50% increase since January 2016!

    3PL Costs Table

    The other seven states with minimum wage increases in 2017 are: Arkansas, Connecticut, Hawaii, Maryland, Massachusetts, Michigan & Vermont

  • New Department of Labor rules will make more employees eligible for overtime pay: In May, the department of Labor announced its final rule updating overtime regulations under the Fair Labor Standards Act, effective December 1, 2016, that will impact some four million workers. The current rule exempts employees with salaries of $23,660 per year and all workers who perform executive, administrative, professional, outside sales and computer duties from receiving overtime pay. Under the new overtime regulations, most employees earning a yearly salary of $47,476 or less would automatically be eligible for overtime pay—think warehouse supervisors and even managers.

The combination of increasing minimum wages and broadly expanded overtime regulations will result in higher pay for warehouse personnel. So, if you operate a warehouse or use a third-party logistics (3PL) company for warehousing and order-fulfillment services, particularly in California, get ready for the impact of these changes.

Instead Be A Hero!

There is a proven solution you can implement now to not only avoid these cost increases but actually achieve your CEO’s goals of improving customer satisfaction while significantly reducing costs. XB Logistics will SAVE YOU 30%, on warehousing, order fulfillment, and value-added services such as kitting, tagging, POS/POP displays, labeling and more. Ask our dozens of clients – a real 30% GUARANTEED SAVINGS!

XB Logistics’ time-tested and ISO 9001:2008 certified business practices allows our customers to cut costs without impacting service levels. We focus on the same KPI’s you do: on-time delivery, order and inventory accuracy, and put-away times. And, using our web portal you’ll have real-time, 24 x 7 access to your data including receipts, on-hand inventory, shipping status and tracking information. Or, let us write an API to assure you have real-time data in YOUR system.

Now is the time to start planning for 2017 so you can positively impact margins and implement our proven strategies that will save you money without sacrificing quality.

Our team will provide you with the information you need, including a cost savings analysis to fully explain the XB Logistics method and present our cost-cutting business practices to your C-suite decision-makers. We provide the presentation materials. You present the answers. Or, have our experienced team make the presentation for you. How much easier can it get?

Start the dialog on 30% cost-savings with XB Logistics today.