Operations and supply chain managers are frequently faced with the need to vary the size of their workforce, a topic in the Aggregate Planning chapter (Ch. 13) in your Heizer/Render/Munson text. The need to do so can be for many reasons, but during the peak holiday season when companies typically add staff, managers needed to do the opposite in 2022. A challenging economic outlook meant layoffs for many light industrial workers holding jobs in product assembly, warehouse operations and order fulfillment.
According to the U.S. Bureau of Labor Statistics, about 13,000 warehouse jobs were cut last November. This might lead one to conclude that supply chain managers could have their pick from an abundance of qualified candidates. However, operations and supply chain workers are flexing their newfound ability to make choices about when, where, and how they work.
A recent article in Supply & Demand Chain Executive states: “We anticipate increased adoption of a more gig-like model as employers in manufacturing, logistics, fulfillment and supply chain seek to offer the types of things employees really want.” A more gig-like model means that employers use hourly workers based on current business needs, which is known as workforce-as-a-service. A person who accepts this type of work, as opposed to working as a company employee, is known as a gig worker. The shift from traditional employment models to a new labor landscape is occurring. This is because the COVID pandemic brought job flexibility that is here to stay, and it does not exclude work in light industrials.
If firms are going to attract the best gig workers, they need to understand what gig workers want. While some gig workers accept gigs, in addition to traditional employment, to combat the increasing cost of living, others rely exclusively on gigs. But both groups report that money isn’t everything. Workers want flexibility, to enjoy the work they perform and to advance their careers. As mentioned, last season many managers were faced with how to correct being overstaffed. Workforce-as-a-service as a means to varying workforce size, presents a new way of thinking for management.
Classroom discussion questions:
1. How can gig workers be incorporated into aggregate planning?
2. To which components of job design can gig work most likely appeal?