European Warehousing Labor Cost

After we completed the warehouse benchmark 2011 we analysed the data and did some remarkable observations. Based on the dataset we evaluated the warehousing costs, labor costs and productivity. In our previous post we already concluded that the warehousing cost in Europa vary greatly (Warehousing cost Europe). In line with the output we found, the labor cost also shows large differences between countries.

Of course it is no wonder that if the warehousing costs shows great differences, the labor costs also are different between the countries in Europe. However, we also found that these labor costs (measured in hourly wage) can vary within a country with more than 20% to 30%.

In the figure above the relative differences inside the countries are depicted. If a specific country includes regions that are green and regions that are colored red, the differences in labor costs vary greatly based on our data set. So locating a warehouse high cost area can have a large impact on the cost.

Warehousing cost make up for about 40% of the total logistics costs (inbound, outbound, inventory, building, labor, and support).  In turn Labor costs make up for about 54% of the total warehouse costs. So one can imagine that relocating a warehouse from France to, for example, Eastern Europe, can have a large impact on the warehousing costs. However, this could double the outbound costs! If you want to know more about the warehouse benchmark and its results please sign in for the Warehouse Benchmark 2012.

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