Virtual reality and augmented reality in supply chain

More importantly VR and AR have been useful in piecing together information to make informed decisions within the supply chain management This trend is likely to persist into the future as more organisations adopt the AR and VR technologies. Moreover, the technologies are becoming cheaper by the day and therefore, AR and VR applications will be common in a matter of a few years. This study looks into how VR and AR have revolutionised the supply chain over the last few years. The application of VR and AR technologies in the supply chain has significantly improved customer experiences. Customers spend less time and costs to get their desired products. It is important to note that the AR and VR technologies, in this aspect, have been quite significant in warehouse management.

A company like DHL has been using AR technologies in its order picking processes, a step that has helped to improve the company’s efficiency in handling orders and the supply chain at large. According to Venter (2017), DHL had incorporated AR glasses for testing purposes and realised a 15 percent improvement in order picking efficiency. Moreover, the company acknowledged an improvement in accuracy. The application of AR at DHL has yield significantly positive results that the company decided to develop "Vision Picking" solutions for its long-term operations (Glockner, Jannek, Mahn, & Theis, 2014). Major retailers such as Amazon and different wholesalers and distributors usually have warehouses, manufacturing plants, and distributions facilities in various parts of their region of operations (Arnold, 2018). A number of the major players in the supply chain have facilities in other countries.

At some times, managers and directors may not be available on site. Regardless of this, they have to be in control. In this case, the use of AR and VR becomes significant. The incorporation of AR and VR technologies helps them to tackle complicated tasks with ease (Merlino & Sproģe, 2017). The technologies have taken up the role of trainers in the sense they give company to employees on new tasks and even the tasks which they are used to in order to ensure improved performance. Employees can easily develop confidence in performing various tasks over time as a result of the input of VR and AR technologies. Managing the last mile delivery of products to consumers and/or retailers has become an interesting operation as a result of incorporating AR and VR technologies.

These technologies help managers and employees to monitor and transmit traffic information to help in routing, re-routing and general navigation for transport systems. More importantly, the technologies have helped to significantly reduce the amount of time spend by drivers to load and offload freight in different parts. Some drivers would spend 40% to 60% of their time searching for packages in their trucks (Samit, 2018). AR and VR have been instrumental in determining the arrangement and packaging of goods for easier loading. AR and VR helps to visualize how various cargos can be loaded within a vessel and reduce the amount of time needed to manually figure out the loading procedures Proper loading enabled by AR and VR helps to reduce the amount of time needed in offloading the cargo at the destination.

AR and VR technology systems are important in providing other information related to cargo such as weight and positioning within the vessels thus drivers and cargo handlers can carry out the processes more efficiently. In this case, the employees can track any event that could compromise their operations and get a solution to it. For instance, having an image of the receiver will enable the company to track products whenever need be on a later date. VR and AR technologies have improved the procurement processes between businesses. The technologies have the capacity to trace product originality and authenticity at a very little cost (Arnold, 2018). These are increasingly important factors in the supply chain for safety and compliance reasons. Many organisations are considering the installation of these technologies especially after the positive feedback from pilot projects done by companies such as DHL.

As indicated in exhibit 1, more industries are in the process of installing the AR and VR technologies. The pilot project have revolutionised the link between technology and supply chain operations to a large extent. AR and VR have contributed largely to improved effectiveness and performance within the supply chain. Customers and companies have experienced better and convenient services as a result of the use of AR and VR technologies. Retrieved from https://blogs. wsj. com/cio/2017/04/04/augmented-reality-to-revolutionize-how-companies-manage-supply-chains-says-mit-researcher/ Cirulis, A. , & Ginters, E. Augmented reality in logistics. dhl. com/content/dam/downloads/g0/about_us/logistics_insights/csi_augmented_reality_report_290414. pdf Merlino, M. , & Sproģe, I. The augmented supply chain. 5 Ways Augmented Reality Is Disrupting the Supply Chain. Retrieved from http://fortune.