For all the hype currently surrounding supply chain gamification, it is not an entirely new business concept. Many organisations have been using simulations, like the Beer Game, for years to help companies educate their management teams in supply chain dynamics.
What is new about gamification, though, is the application of digital software to make it more engaging, immediate, and suitable for a range of environments beyond the classroom. Indeed, gamification is becoming an increasingly popular feature across the entire supply chain, from procurement to last-mile delivery.
But is gamification really a responsible approach to improving supply chain performance? We believe it is, if it’s done right, which means using it for carefully selected scenarios and with the right objectives in mind. These are the principles we’ll expand on in the remainder of this article.
Gamification: What It Is and What It Is Not
Let us begin with a quick summation of what gamification is and how it works. Essentially, gamification is just an expansion of the use of metrics and KPIs to measure human performance.
Of course, gamification can only be used in processes requiring human input, since it drives performance by way of motivation. This is precisely why, if you decide to implement some form of gamification, care should be taken in determining what the venture should achieve.
Gamification is not just another term for incentivisation, at least not in the same sense as conventional incentivisation strategies. The difference is quite subtle, but lies in the fact that while rewards (financial or otherwise) may play a part in supply chain gamification, they should not become the sole source of motivation.
The Motivational Effects of Game Mechanics
The idea of gamification is to provide employees with a range of motivations to take on specific behaviours, which in turn have a positive impact on performance. The motivational influences of gamification include:
- The introduction of a competitive element to task execution
- The addition of extra interest to mundane, but labour-intensive activities
- The transformation of performance monitoring from a potentially threatening management practice, to one in which employees feel more involved and engaged
- The provision of levels, statuses, rewards, titles, badges, and other elements that create a sense of achievement when a certain performance threshold or goal is reached
When applied to a task, activity, or process, these elements combine to create a fresh sense of excitement for participants, while also using positive motivation to raise performance levels.
Where to Use Gamification in the Supply Chain
As mobile technology continues to become more versatile and capable, the introduction of game mechanics becomes possible in more and more areas of supply chain activity.
You can implement gamification across various supply chain functions, including:
- Procurement and supplier management
- Inventory management and warehousing
- Production planning and scheduling
- Transport management
- Last-mile delivery operations
While it has always been possible to run incentive programmes in these functions, digital technology has brought about the possibility of true gamification, which can be applied not only in the workplace proper, but also as an aid to training and education.
You will need to invest in software that can extract data from your company’s ERP, WMS, and other business information systems and utilise it within a meticulously designed framework to create the gamification experience.
Implementation Examples Across the Supply Chain
In Procurement
Gamification can be used to encourage better supplier relationship management, more effective negotiation outcomes, and improved compliance with purchasing policies.
Many of the big firms have been introducing game-like elements into their software. An example of this is Unilever, who give their employees rewards if they meet key performance indicators relating to sustainability and ethical sourcing.
In Warehousing
Gamification in warehousing is becoming more commonly used as a way to increase employee productivity and operational efficiency. Activities where gamification might be suitable include:
- Order picking
- Inventory counting
- Quality control
- Shift management
- Value-added activities
The most well-known example of this is Amazon’s FC Games, which gives employees digital rewards based on their performance and picking accuracy. The general feedback is good, with increased employee engagement leading to a more enjoyable and fun experience for staff.
In Transportation
For transport operations, gamification targets could include:
- Safe and fuel-efficient driving
- Route optimisation
- On-time delivery performance
- Loading efficiency
- Customer service quality
Fuel efficiency and route optimisation are the big ones here. Just as you can use gamification to determine the fastest picking routes in a warehouse, this can also be applied to transport, with drivers who follow optimised routes receiving rewards and positive feedback.
Safety Considerations in Gamification
When implementing gamification in operational environments, safety should always be the primary consideration. For instance, in warehousing operations involving forklifts, or in transportation, any gamification elements should be designed to avoid creating distractions.
The one thing you should avoid with gamification is an excessive focus on speed. It’s only natural to want to motivate employees to improve productivity, but challenging them to work faster is not necessarily the best way to do so.
Gamification for Supply Chain Education
As an enhancement to training and education, gamification is particularly effective. Simulations like the Beer Game are evolving into digitised virtual environments, where individuals or teams can compete to achieve objectives and learn about complex supply chain principles in an entertaining way.
A survey conducted by TalentLMS found that 89% of employees believe that gamification makes them more productive. This statistic supports the growing adoption of gamification across supply chain operations.
Implementing Logistics Gamification Responsibly
Gamification in supply chain operations is not something that will appeal to everyone. However, at a time when supply chain talent appears insufficient to meet demand, and millennials (to whom gamification is most likely to appeal) are forming an ever-larger proportion of the working population, it’s unsurprising that companies are prepared to try gamification as a way to engage people and drive improvements.
The key is to implement game mechanics responsibly, and avoid crossing the thin line between enhancing workplace activities and needlessly exploiting people’s desire for fun, competition, and achievement.
