Artificial intelligence is improving warehouse labor efficiency by enabling faster onboarding and real-time performance tracking through labor management systems (LMS). According to a 2026 report by DC Velocity, AI-powered training tools can reduce onboarding time by up to 30%. ODW Logistics, a third-party logistics provider based in Columbus, Ohio, deployed an AI-enabled LMS from Takt in November 2024 and plans to scale it across about two dozen facilities. The system alerts managers when workers take 25 minutes to begin tasks after arrival or exceed performance targets by 20%, enabling timely support or recognition. Experts say AI won’t replace workers but will enhance human decision-making, improve safety via computer-vision analysis, and boost retention by reducing training time and operational friction.
According to www.dcvelocity.com, artificial intelligence is enhancing warehouse labor efficiency by enabling faster onboarding and improving performance tracking through labor management systems (LMS).
AI Enhances Onboarding and Training
Warehouse staff turnover remains high, but AI-powered training tools are reducing the time required to onboard new employees by up to 30%, according to Tony Wayda, consulting principal of client advisory and partnerships at JBF Consulting. The technology leverages augmented reality (AR) and virtual reality (VR) to simulate real-world tasks before workers step onto the warehouse floor, allowing them to learn complex procedures more quickly and safely.
“If we can get someone onboarded 30% faster and give them better training systems, your people will be happier and you’ll have less turnover.” — Tony Wayda, JBF Consulting
George Ninikas, senior vice president of accounts at Ortec, a supply chain optimization software developer based in Atlanta, said AI enables personalized training tailored to individual experience levels. This reduces the time needed to master warehouse management systems (WMS) or planning tools, potentially cutting weeks or months from traditional training timelines.
AI-Powered Labor Management Systems in Action
ODW Logistics, a third-party logistics (3PL) provider headquartered in Columbus, Ohio, deployed an AI-enabled labor management system (LMS) from Reston, Virginia-based Takt in November 2024. The company is currently operating the platform at a handful of facilities and plans to expand it to about two dozen sites.
According to Brian Drees, ODW’s senior director for operations excellence, the system provides real-time performance tracking. For example, if a worker takes 25 minutes to begin their shift tasks after arrival, the system automatically alerts a supervisor. This enables immediate intervention to address operational barriers, such as equipment delays or unclear instructions.
“Employees just want to do their work, not have obstacles to jump over to get it done.” — Brian Drees, ODW Logistics
Conversely, if a worker exceeds their target picking rate by 20%—reaching 120% of standard—the system notifies a manager, allowing for prompt recognition. Drees noted that timely praise and support significantly boost morale and performance.
Performance Tracking and Workforce Support
The Takt LMS platform not only monitors individual performance but also supports supervisors by providing actionable insights. By identifying anomalies in real time, the system helps managers address inefficiencies proactively rather than reactively. This dual functionality improves both operational efficiency and employee satisfaction.
Experts agree that AI will not replace warehouse labor but will enhance human capabilities. Wayda emphasized that while AI can’t replicate human judgment, it can suggest optimal pick paths, restocking plans, and workflow adjustments—leading to faster, better decisions.
Additionally, AI can improve workplace safety by analyzing computer-vision data to detect potential collisions before they occur, reducing accident rates and downtime. These capabilities align with broader industry trends: global warehouse automation investments are projected to reach $32.8 billion by 2027, according to a 2025 report by MarketsandMarkets.
Industry-Wide Adoption Trends
As of 2026, transportation and logistics providers are viewing AI integration as a critical lever for operational transformation. The ability to scale workforce effectiveness without increasing headcount is particularly valuable amid uncertain geopolitical and tariff conditions that can cause sudden inventory surges.
Other major players, such as Amazon and DHL, have also implemented AI-driven labor management tools in their fulfillment centers. Amazon’s use of AI for route optimization in its warehouses has reportedly improved picking efficiency by 18%, according to a 2025 internal report shared with industry analysts.
For supply chain professionals, the integration of AI with LMS represents a practical advancement in workforce management—reducing training time, increasing productivity, and improving retention—all without replacing human workers.
Source: DC Velocity
Compiled from international media by the SCI.AI editorial team.
