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Once thought of as science fiction or a technology or marketing gimmick, augmented reality (AR) might soon find some a real-life uses in the supply chain.
A recent report by logistics provider DHL, jointly developed with Z_punkt the Foresight Company, outlines how AR could affect the logistics industry, specifically in the areas of warehouse, transportation, and delivery management.
Although still in its infancy, AR's appeal is growing as more hardware, software, and consumer-ready devices start coming to market, according to the Augmented Reality in Logistics report. Additionally, there are more user-driven conversations about how AR and AR-generated information could be better applied to everyday life situations, which could influence how applications are developed in the near term. (See Max Maxfield's recent series.)
Forecasts also point to an AR sweet spot coming on the horizon. Based on numbers from Xcubelab, Research and Markets, and CNET, the market could grow to $5.2 billion by 2017, from a nascent base in 2012, the report notes. Several startups and big companies, including Google, Canon, and Qualcomm, have been significantly funding AR projects and are expected to bring new products to market in the next 12 months. The impact will reach a number of business sectors, including the consumer, medical, mobile, automotive, and manufacturing markets.
By extension, AR will eventually touch supply chain and logistics operations as well. DHL envisions a range of AR applications that could be built out of AR's primary tasks of scene capture, scene identification, scene processing, and scene visualization and help reshape warehouse, transportation, last-mile delivery, and customer service activities.
In the warehouse, staff could be equipped with head-mounted devices with the aim of improving efficiency and reducing picking errors. Warehouse operations account for an estimated 20% of all logistics costs, so improving the picking process with AR-based technology could help lower costs, improve warehouse plan, and be used for training new and temporary warehouse staff, according to DHL.
From a transportation perspective, there could be several application uses. One would be to put AR windshields on trucks to collect real-time traffic data, cargo temperature, and other important information could improve transportation planning and supply chain visibility. Additionally, AR could be used to better the overall freight loading process. Although many logistics companies make extensive use of digital data and planning software to optimize load planning and vehicle utilization, DHL suggests, “AR devices could help by replacing the need for printed cargo lists and load instructions. At a transfer station, for example, the loader could obtain real-time information on their AR device about which pallet to take next and where exactly to place this pallet in the vehicle,” all of which would speed up the existing process.
There's also talk that AR could create more value-added services, and for the manufacturing sector that could translate to improved assembly and repair services from their third-party logistics provider. In this case, 3PL assembly and repair teams could be outfitted with hands-free AR devices, perhaps something like glasses, that are loaded with software supporting specific tasks and providing visual step-by-step assembly and repair instructions. DHL anticipates that this could improve overall quality and significantly reduce training costs.
How will AR change your supply chain practices? What would you like AR applications and devices to do for your everyday supply chain life?
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- Internet of Things Set to Transform Logistics in Supply Chains
- Getting on Top of Customs Compliance in a Global Economy
- Slideshow: Top Manufacturing & Purchasing Trends
- Data Overload: The Challenge of Managing Supply Chain Analytics
There seems to be N number of possibilities where AR could be replacing the conventional methodology .
I just thought about the inspection process at each point of transfer in the supply chain.
Currently a lot of time and effort is required at every stage of the supply chain in inspection of the goods – 1, at the factory gate 2. at the check posts on roads, railstations, airports, 3. At customs 4. at the customer and so on.
With AR application such checks would be possible without the need to physically see the goods , without having the hardcopy packing list and so on.
So the good once packed from the originating location need not be opened, unpacked, unloaded, reloaded .. till they reac their final destination.
@prabhakar, i like the way you think. that would save a lot of time, plus reduce the possiblity of product being damaged or lost.
Government and regulations are not all bad. If we let the IoT become like the wild west then chaos will ensue. We do need regulators to enforce some rules so I0T evolves in a safe, fair and profitable manner. Everything should not be driven purely for individual gain as we also need to think of the greater good.
Agree with you. The only thing is today trust in government is at lowest level. Hence, Although I agree with president Obama in his decision, it is possible to have self regulated economy such that government intervention is at its lowest
Yes, I agree that net neutrality is essential on many levels. However, the move by the Obama Administration to classify internet providers under the same laws as the telecom companies– the very ones that you complain about as being the model for what we shouldn't have– makes zero sense. Don't be fooled– this move does nothing to guarantee net neutrality, but instead will cause the same fate to befall the internet providers that you rightly rail against for the telecoms.
As compared to what U court of Appeals did, Obama seem to be wiser in his decision.
@FlyingScott, these areas certainly need oversight. I'm not convinced that the government is the right organization to do it. 🙂
@Apek, how do you see this situation evolving in the near term? This topic is all over the headlines lately.
@gippatel, What path do you think can be taken to guarantee net neutrality? Is there a clear path or is this something that remains unevolved yet?
@Hailey , In the near term…Looking at the way our dysfunctional congress is working is by executive actions of president. Both house and senate being controlled by republicans, democratic President can expect least support from them only any issues. If republicans are not for net neutrality…then we can conclude that they are getting a lot of money from crony capitalists. With such a huge amount of Political corruption in US democracy, I also agree that such critical issues should not be decided by Politicians. Politicians should take opinion of their electorate to make these decisions. But, Polticians tak opinion of lobbyists. It is just too much complicated issue. I wonder when will free market economy come back so that prosperity does not depend on government intervention into economy. Let us see what EBN bloggers have to say about it?
So in the name of “net neutrality” and “free markets” the plan is to fix something that isn't broken by applying some 1930s-era utility regulations and possible price controls to 21st-century technology. Meanwhile, private investment in Internet infrastructure technology will slow to a crawl as a result of uncertainty over new potential legislation. Sounds like a brilliant idea.
Why Obama's plan to save the Internet could actually ruin it
There exist no true “Free markets” in US..hence….without a way to protect neutrality….there would be internet monopolies and just like other sectors of economy….Monopoly Capitalism will thrive in IoT and it would stagnate the economic growth. It is very similar to how monopoly capitalism is bringing about demise of Moore's law.
“…without a way to protect neutrality….there would be internet monopolies…”
The Internet has never been “neutral” (see the link in my previous comment). And so-called “Internet monopolies” may not actually be a bad thing:
Internet monopolies: Everybody wants to rule the world
If you think Internet monopolies would be a good thing…just look at Global semiconductor industry and Global economy. WHy is the Global capitalism coming to a standstill because a few players have been allowed to monopolize the market. Anyway, Just wait for 6-8 months…US economy will witness a major crash in 2015. THe cause being monopoly capitalism…no economy can survive when monopolies are allowed to thrive. Wait for my next blog explaining the end of Moore's law, stopping of 450 mm wafer transition and reluctance of further investments in EUV because of crony capitalism. Hence, If you study the macroeconomic causes of failure of US economy…you will think twice why Monopolies should be allowed to thrive in IoT sector.
“WHy is the Global capitalism coming to a standstill because a few players have been allowed to monopolize the market. Anyway, Just wait for 6-8 months…US economy will witness a major crash in 2015. THe cause being monopoly capitalism…no economy can survive when monopolies are allowed to thrive.”
Forgive me for being skeptical of doom and gloom predictions based on Marxist doctrine (i.e., the theory of “monopoly capitalism”) and dubious assertions (e.g., “…Global capitalism [is] coming to a standstill”).
If you do not know how macroeconomics works, may be I would recommend you to read a small article “A FAILURE ANALYSIS OF US ECONOMY“. After you have read it, I would recommend you to read forecasting record of Professor Ravi Batra . He has better forecasting record than any economist living on this planet. Now, also read about his opinion about who is Marxist in Reagan the great American Socialist. Now, If you agree with his opinion or are convinced what is Socialism, then you could consider reading Greenspan's Fraud . Now, That you have read so much and wish to understand what is Free Market Capitalism, consider reading why Ravi Batra thinks Mass Capitalism is Wave of the Future .
“I would recommend you to read forecasting record of Professor Ravi Batra . He has better forecasting record than any economist living on this planet.”
Ah yes, Ravi Batra, the author of the prophetic book “The Great Depression of 1990.”
“I would recommend you to read forecasting record of Professor Ravi Batra . He has better forecasting record than any economist living on this planet.”
Ah yes, Ravi Batra, the author of the prophetic book “The Great Depression of 1990.”
Well, Ofcourse…he was not riht on his forecast about 1990 great depression because America got a credit card from China in 1990. Now, Do you know how much Debt US owes to China and how much control China has over American economy. Just wait for end of 2015…and watch US sink into an economic crisis far severe than 2008 crash and just keep watching that today China has just overtaken US economy to become no.1 but toorrow…US economy will sink deep into doldrums because of ignorance of common sense macroeconomics. Then Even the critics of Batra would realize that perhaps great depression of 1990 would have been much better than coming crash of crony capitalism and the tremendous pain that would come with it. However, Batra is optimistic of a new golden age to start sometime in 2016. I believe that would happen with election of Elizabeth Warren as president in 2016.