The rise in e-commerce has been accelerated by the COVID-19 pandemic.
E-commerce requires three times the warehouse space over brick-and-mortar retail operations. A real key to managing a warehouse efficiently is inventory throughput. Wayfair, for example, focuses on throughput and uses a chase demand strategy to staff warehouse operations to obtain efficiency.
Video Spotlight:
- Inside An E-commerce Warehouse (Oct 12, 2016, NDTV)
- E-Commerce Automation at Newegg’s Robotic Distribution Center (Oct 16, 2018, Bastian Solutions)
- Designing an Efficient Warehouse Layout for eCommerce, Assembly and Distribution with Shipedge (Jan 28, 2019, ShipEdge Systems)
- The Evolution from Warehouses to e-Fulfillment Centers (Sept 28, 2018, Layton Construction)
This post is based on the Supply Chain Dive article, Prologis: Demand for warehouse space will rise alongside e-commerce growth, by Matt Leonard, June 18, 2020, and the YouTube videos in the Spotlight. Image source: vitpho/123RF
Discussion Questions:
1. Wayfair uses a chase demand strategy to staff the warehouse operations. What other aggregate planning strategies could Wayfair employ? Is the chase demand strategy the better option? Why or why not?
Guidance: Students should consider all the aggregate planning strategies in the textbook. Lead the discussion by Continue reading
