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While major disruptions seem less common today than they did a few years ago, we still live with the potential of bottlenecks and service failures. A decade ago, Prof. David Simchi-Levi introduced the risk exposure index (REI) to quantify supply-chain risk.
Although REI can serve as a valuable checklist, you probably don’t need a professor to develop your own strategy. The process is simply to imagine all the things that could go wrong, how they will impact your operation, and what you can do to work around each of the potential disruptions. One thing is certain, planning and developing a risk management strategy is a worthwhile exercise.
One threat to consider can be found in the warehouse. Are you solving the right problem in addressing employee burnout? When McKinsey studied the burnout problem, they found that employees frequently cite the feeling of always being on call, unfair treatment, unreasonable workload, micromanagement, and lack of social support. While the best employers are concerned about health, these challenges are not reversed with wellness programs. When burnout is studied, work related outcomes such as job satisfaction, supportive growth environment and leadership accountability can and should be measured. In effect, the best way to reduce employee burnout is to create a superior place to work.
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