In today's fast-paced and highly competitive supply chain industry, finding innovative ways to boost productivity and engage employees is paramount. One such innovation that has been making waves in the sector is gamification.
Gamification involves adding game mechanics into nongame environments. It aims to inspire collaboration, sharing, and interaction among consumers, employees, and partners. By integrating game elements and principles into traditionally non-game contexts, gamification seeks to tap into the intrinsic human desire for competition, achievement, and recognition. In this blog, we'll delve deeper into how gamification can be applied specifically to the supply chain industry, exploring its potential benefits, real-world applications, and acknowledging the challenges and drawbacks it may pose.
Amazon
Amazon has introduced FC Games, a collection of digital games designed for voluntary participation by its warehouse workforce. Within this gamified system, as warehouse employees retrieve items from shelves and place them in bins, they accumulate digital currency that can later be exchanged for various prizes.
Simultaneously, managers closely monitor workers' speed and precision. While some workers find these games a welcome distraction amidst their repetitive daily tasks, concerns have arisen among employee advocates. They worry that the extensive monitoring and reward-driven system could transform workers into mechanized entities, with potential consequences such as increased risk of injuries and burnout.
It's worth noting that Amazon has not disclosed any public performance gains resulting from its gamification initiative. However, other players within the supply chain industry who have implemented gamification strategies have begun to experience and promote the advantages of this innovative approach.
Starbucks
Starbucks stands out as a shining example of the positive impact of gamification. The coffee giant found itself facing a common challenge: the timely delivery of disposable items such as coffee cups and napkins to its numerous stores.
The problem stemmed from a common scenario—a lack of coordination between suppliers and stores due to last-minute orders without proper planning. This led to increased logistics costs, with the company often resorting to costly air transport for urgent deliveries.
Starbucks tackled this challenge head-on by introducing a gamified data center, which served a dual purpose. First, it allowed every link in the supply chain to monitor individual performance. Second, it implemented a competitive element where late deliveries resulted in a deduction of reputation points. However, the competition wasn't about being the absolute best but rather avoiding falling behind.
This transparent data-sharing system extended to all members of the supply chain, including suppliers, distributors, and stores, in real-time. The result was a self-organizing and collaborative ecosystem. This new level of transparency and collaboration significantly reduced the frequency of emergencies, leading to a substantial shift from air shipments to more cost-effective land shipments.
Starbucks' journey showcases the transformative potential of gamification in supply chain management. It not only improved their profit margins but also enhanced the efficiency and sustainability of their supply chain operations.
Drawbacks
1) Mandated Play vs. Voluntary Engagement: Employees may resist gamification when it's imposed on otherwise mundane tasks, leading to potential rebellion. Games are inherently voluntary, and trying to make them mandatory can be seen as coercion, diminishing the enjoyment and effectiveness of the approach.
2) Risk of Cheating and Internal Competition: Gamification tied to job performance and rewards may tempt employees to cheat or exploit system loopholes. Internal competition could lead to unethical behavior and sabotage among coworkers striving to achieve specific goals.
3) Novelty Wears Off: Over time, gamified elements like badges, leaderboards, and challenges can lose their appeal, potentially resulting in diminished motivation. To sustain engagement, gamification designers must continually introduce variety and novelty into the experience.
Gamification is transforming the supply chain industry, with Amazon and Starbucks as prime examples of its impact. While it offers exciting benefits, it also presents challenges like maintaining voluntary engagement and guarding against unethical behavior. Finding the right balance is the key to unlocking its full potential in supply chain management.
Sources
What is Gamification? – Biworldwide
Warehouses turn to gamification to level up productivity – SupplyChainDive
Gamification: a strategy to improve logistics performance – Ignasi Sayol
