OM in the News: How COVID-19 Changed Warehouses

In the first flush of the COVID-19 pandemic, warehouses rushed to do what they could to keep their workers safe. Now that warehouse managers have had time to see what’s worked, what hasn’t, and what they could’ve done better, they’ve adjusted their workflows, making changes that keep workers safe. Changes for worker safety dovetailed with a surge in demand for e-commerce, which has pushed warehouses to adjust at the same time, reports Supply Chain Dive (Oct. 27, 2020).

Warehouse managers are making investments in finding the right PPE and shifting workplace design to accommodate social distancing. “How do I incorporate temperature monitoring so I can screen potentially sick workers? How do I look at sick leave policies? How do I leverage technology to trace and track movement and contacts, if someone reports that they’ve tested positive?” are some of the questions managers are asking.

Most warehouse design changes are today less about the spaces and more about how workers move through them. Technology has played an important role, from applications that have employees do check-ins about potential symptoms, to algorithms that create routes for workers that ensure social distancing. An algorithm can recognize within an aisle if employees are following the 6 feet rule separation. AI and machine learning can use data from cameras that are networked into a central hub. Such a system knows how many people should be within that aisle within a specific time and if too many tasks are going to that aisle. Technology can also sense when an employee is not working at usual capacity, which could be a sign of illness. 

With hiring at full force this holiday season, companies are trying to “pre-skill” those coming into their workforce with a basic understanding of inventory management, transportation, logistics and manufacturing. And they are also working to “upskill” leaders to be able to assimilate technology with the workforce.

Classroom discussion questions:

  1. Prior to COVID-19, what were the main issues facing warehouse managers? (Hint: see Chapter 9’s section on Warehouse and Storage Layouts on p.375-77 of your OM text).
  2. What are the new OM warehouse issues?

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