How COVID-19 Changed Warehouse Management
The first priority for businesses at the onset of the COVID-19 pandemic was the well being and protection of employees. Now, seasoned leaders navigating the volatile business landscape have some experience under their belts and therefore, they have seen what has and what hasn’t worked.
The global pandemic upended the status quo for many industries, some more affected than others. It upended the design, management, and operations of warehouses. As a result, warehouse managers have proven themselves resilient in the face of disruption. After observing the effects of a global shutdown, managers have learned how to effectively adjust workflows to ensure employee safety and how to effectively manage an influx in online consumer demand. Proactive companies were fortunate enough to have the advantage of digital infrastructure on their side making it relatively easy to respond quickly, accelerate operations, and pivot business models.
Warehouse changes have been about the employees. Modifications in design have been implemented to transform the layout of fulfillment centers to address growing concerns of social distancing. The layout design is radically changing to eliminate chances of contracting the virus including new additions such as floor markers and plexiglass barriers.
Many warehouse managers are jumping on the automation bandwagon to not only introduce efficiency and maximize productivity, but to limit germ transmission and human contact. Instead of traditional assembly lines and sorting systems, companies are automating these processes as well as adopting new logistics management software to analyze stock.
Centralization is no longer considered to be the best practice in warehouse management. Increasingly, companies are opting for more local fulfillment centers. Regional fulfillment centers have the advantage of speed to serve customer demand. This strategy is especially effective in meeting the surge in e-commerce. These new warehouses include wider aisles to improve circulation and minimize the spread of germs.
No industry will emerge from 2020 unscathed. The way companies manufacture and distribute goods and services will never look the same as years prior, but businesses that take on reactive approaches to their risk management strategies and adapt accordingly will collectively help shape the next normal.