COVID-19 and distribution centres operations: The impacts and countermeasures

Abstract

COVID-19 has wreaked havoc on supply chains. This is particularly true for distribution centres as they struggle to bounce back amid the COVID-19 outbreak. While much literature has recently emerged on supply chain disruption, studies pertaining to the impacts of COVID-19 on distribution centres and the countermeasures taken to mitigate such impacts are elusive and mute. Our study fills this important gap in the supply chain literature. This study employs a multiple-case methodology and conducts 40 semi-structured interviews with senior managers/executives from eight distribution centres in the United Arab Emirates. Our results exhibit that COVID-19 is adversely affecting the distribution centres in at least six distinct ways. For instance, distribution centres are encountering limited staff availability, inventory shortage, destabilized supply chains, excessive inventory, limited capacity and surge in demand. Results also demonstrate six corresponding strategies employed by distribution centres to mitigate the impact. For example, distribution centres enhance warehouse automation, increase hands-on inventory, reshoring manufacturing, use scalable processes and an automation retrieval system, and finally employ a picking strategy. Distribution centres can use the findings provided in this study. Particularly, they can learn how COVID-19 affects them and what corresponding strategies they should adopt to stay strong during this pandemic. This study demystifies its contribution to theory and practice alongside limitations and future research directions.