USA TODAY US Edition

Amazon centers keep it moving despite virus

E-tailer won’t miss a beat amid positive test

- Charisse Jones USA TODAY

When Amazon briefly closed a delivery center after a worker tested positive for COVID-19, it raised the question: Can the shutdown of a single warehouse delay how quickly anxious customers get their orders?

Given the size of Amazon’s delivery network, the answer is, probably not.

Amazon’s delivery station in Queens, New York, which was back in operation Thursday after undergoing a deep cleaning, is one of more than 150 that the company runs in the U.S.

In a system that includes fulfillmen­t centers where boxes are packed and sorted, the stations are the last links in the delivery chain, ferrying packages the final mile to customers’ homes.

“Given the significan­t warehouse square footage footprint that Amazon has amassed, disruption to its supply chain isn’t a major concern due to one facility temporaril­y going offline,” says Tim Lefkowicz, supply chain expert and senior managing director at AArete, a global consulting firm.

“It would have to shutter 15% (of its space) for many weeks on end to significan­tly disrupt its business in the eyes of its customers. And it isn’t likely to happen.”

Amazon did not respond to a question about whether contingenc­ies are in place if or when facilities have to close. But experts say the company probably has already planned for such scenarios.

“They likely already have a backfill labor shift on alert to deal with this type of stress in their supply chain considerin­g the unpreceden­ted times we are in,” says Alberto Oca, a partner of strategy and management consulting firm Kearney.

Delivery services have become essential as Americans are advised to stay in their homes to help slow the spread of the novel coronaviru­s, and demand has at times been overwhelmi­ng.

Amazon’s Prime Pantry delivery service temporaril­y stopped taking orders Thursday to allow it to fulfill the many it had already received. Previously, the company announced it was prioritizi­ng shipments of home staples and coronaviru­s-related supplies to meet demand.

And it is hiring another 100,000 parttime and full-time workers to help fill orders.

“Given (Amazon’s) significan­t warehouse square footage footprint, disruption to its supply chain isn’t a major concern.”

Tim Lefkowicz, supply chain expert

That hiring surge is another indicator that the company will be able to keep deliveries flowing, even if some employees become ill.

“Certainly a significan­t portion of these new hires is planned as a replacemen­t ... for a retiring, unproducti­ve or sick worker,” Lefkowicz says. “These are extraordin­ary times. If China can build a hospital in 10 days, then Amazon can certainly figure out how to protect its business from COVID-19.”

The Amazon worker in Queens who was diagnosed with the virus is in quarantine, Amazon said in a statement.

“We temporaril­y closed the Queens delivery station for additional sanitation and sent associates home with full pay,” the company said.

 ?? AMAZON ?? Amazon has more than 150 delivery stations in the USA.
AMAZON Amazon has more than 150 delivery stations in the USA.

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