During the lecture, we explored how novel emerging technology, such as Augmented Reality (AR) and Virtual Reality (VR), has much more potential than just being future-related novel innovations. These technologies also enhance human capability and are transforming operations.
A crucial field within a business’s supply chain and sector is logistics. Accuracy, speed, and efficiency are highly crucial in this field (Anguelov & Kenova, 2018)
A very prominent case related to AR is DHL, a world-renowned logistics organization that executed a pilot called “Vision Picking”. This pilot involved implementing smart AR glasses in their warehouses, rather than using manual scanners or lists on papers. Warehouse employees got steps based instructions in their vision field. This “vision picking” system displays product pictures, highlights shelves, and confirms pick-ups in real-time. The result was an increase of 25% in the efficiency rate during the picking process (DHL, 2015). However, research finds that AR implemented in logistical operations is still in its infancy (Plakas et al., 2020).
Another accurate example related to VR is UPS, which has currently set up an entire mobility training academy with VR glasses to improve training for its employees to become safe drivers. UPS provides its employees with opportunities to encounter realistic driver environments in advance of driving in a real vehicle. The goal of this initiative is to improve safety for their customers as well as their employees. Ultimately, it improves driver training, resource utilization, and enhances employees’ experiences (UPS, 2021).
In my opinion, these AR and VR technologies have high potential to become as essential in the logistics part of business supply chains as barcodes and transportation vehicles are in today’s world. However, the adoption of these technologies depends on whether businesses can balance the efficiency and safety returns with the technology costs that come along along with them. Also, another challenge lies in the human factor. For example, employees often need to be convinced to utilize new tools. In my experience, people tend to be reluctant towards novel innovations, as they find current operations good enough and might consider new technologies as disruptive or risky.
Therefore, the key question arises: Will AR and VR soon become standardized in logistics operations, or remain innovations only adopted by frontrunners?
What do you think, are we close to warehouses where smart glasses are as common as barcode scanners?
Reference List:
Anguelov, K., Kenova, R. (2018). Research and Evaluation of Factors and Sub-Factors that Affect on the Timeliness and Reliability of Deliveries and Their Importance for the Efficiency of the Logistic Processes. Proceedings of the IEEE International Conference on Hi-Technology in Engineering (HiTech). https://doi.org/10.1109/HiTech.2018.8566513
DHL. (2015). DHL successfully tests augmented reality application in warehouse. DHL. https://www.dhl.com/global-en/delivered/innovation/dhl-successfully-tests-augmented-reality-application-in-warehouse.html
Plakas, G., Ponis, S., Agalianos, K., Aretoulaki, E., & Gayialis, S. (2020). Augmented Reality in Manufacturing and Logistics: Lessons Learnt from a Real-Life Industrial Application. Procedia Manufacturing, 51, 1629–1635. https://doi.org/10.1016/j.promfg.2020.10.227
UPS. (2021). Virtual reality helping to create safety for UPS drivers. https://about.ups.com/us/en/our-stories/innovation-driven/virtual-reality-helping-to-create-safety-for-ups-drivers.html
