Gamification

Gamification in Distribution Centers

Introduction

The logistics industry has made great strides in process automation, implementing software solutions, automation, IoT, robotics, artificial intelligence, and more. However, the cornerstone that enables all these tools to function remains human talent..

For this reason, logistics companies are highly interested in maintaining a highly skilled, but also highly engaged workforce. This is critical, as disengaged employees tend to show lower productivity and higher absenteeism (Körber, n.d.).

According to the Gallup research institute(Gallup, n.d.), employee engagement is defined as the involvement and enthusiasm of employees in both their work and workplace..

According to the Gallup research institute (Gallup, n.d.), employee engagement is defined as the involvement and enthusiasm of employees in both their work and workplace. In Gallup’s latest study, which compiled responses from 2022 to 2024, only 21% of employees worldwide are engaged, while leading companies in this area reach engagement levels of 70%. This highlights the pressing need to find new ways to motivate the workforce and increase engagement levels.

One of the emerging methodologies to enhance operator efficiency and engagement is known as "gamification". Gamification—the use of game elements in non-game contexts—has gained momentum as a strategy to boost employee motivation, engagement, and performance in industrial environments.

In particular, distribution centers (DCs) face operational challenges such as high employee turnover, low engagement, and critical process errors. Applying gamification techniques in these facilities can transform workplace dynamics and deliver measurable benefits.

What is Gamification in Logistics?

The gamification in logistics refers to the application of game mechanics (points, levels, rewards, rankings, challenges) to work tasks such as picking, packing, restocking, or audits.

These mechanics are integrated into management systems (such as WMS or TMS) to provide immediate feedback and reinforce desired behaviors.

Fundamental Principles of Gamification

Motivation: Use rewards, recognition, and competition to motivate individuals to achieve goals.
Engagement: Keep users actively involved in tasks by making them more interactive and enjoyable.
Feedback: Provide continuous feedback to users on their performance, helping them understand their progress and opportunities for improvement.
Challenges: Introduce structured challenges that motivate users to develop new skills or solve problems

Practical Examples of Application

Real-time dashboards with scores and rankingsdisplayed on warehouse floor screens.
Digital badges or medals for achievements such as zero errors in a week or 100% daily goal completion.
Challenges between shifts or teams, with non-monetary rewards such as preferred parking or mentions in internal newsletters.
Mobile apps that allow employees to track their progress and compete with themselves.

Companies such as DHL, Kenco Logistics, XPO Logistics and GEODIS have already implemented these strategies with positive results.

Expected Benefits

Implementing gamification in distribution centers has shown a direct impact on key performance indicators:

These benefits are especially valuable in high-turnover and high-pressure environments such as distribution centers, where maintaining engaged and efficient teams is essential.

Considerations for Implementation

Before implementing a gamified system, it is necessary to:

Define measurable objectives(for example: reduce picking errors by 15%).
Choose appropriate game mechanicsfor the team’s context and profile.
Avoid excessive competition, prioritizing collaboration.
Continuously measure resultsto adjust dynamics based on team feedback

Success depends on gamification being perceived as a tool for improvement and recognition — not as a mechanism of control.

Resources for Further Learning

Körber – “Gamechanger: How gamification revolutionizes employee engagement” - https://www.koerber.com/en/supply-chain/gamechanger-how-gamification-revolutionizes-employee-engagement
Gallup Employee Engagement Indicator – https://www.gallup.com/394373/indicator-employee-engagement.aspx
Smith, Hussein. (2024) – Gamification in E-supply Chain Management: Enhancing Coordination and Employee Engagement.

Conclusion

Gamification is a powerful tool to boost efficiency and engagement in distribution centers. It transforms processes and enhances the work environment. When implemented strategically, it can become a strong competitive advantage.

Written by:

LUIS EMILIO FERNANDEZ DE JAUREGUI

DIRECTOR OF TECHNOLOGY AT ONILOG