2. Augmented Reality
• What is it?
• What is its connection to logistics and supply chain management?
• Why is it so revolutionary?
3. What is it?
• The process of superimposing digitally rendered images onto our real-world
surroundings, giving a sense of an illusion or virtual reality. Recent developments
have made this technology accessible using a smartphone.
onvert.com Guide to Augmented Reality
http://onvert.com/guides/what-is-augmented-reality/
5. Adding to reality
• The origin of the word augmented is augment, which means to add something. In the case
of augmented reality (also called AR), graphics, sounds, and touch feedback are
added into our natural world…..augmented reality uses your existing natural
environment and simply overlays virtual information on top of it. As both virtual
and real worlds harmoniously coexist, users of augmented reality experience a new
and improved world where virtual information is used as a tool to provide assistance
in everyday activities.
The Ultimate Guide to Augmented Reality Technology
http://www.realitytechnologies.com/augmented-reality
6. Types of Augmented Reality
• Marker Based Augmented Reality
• Markerless Augmented Reality
• Projection Based Augmented Reality
• Superimposition Based Augmented Reality
7. Marker Based Augmented Reality
• Marker-based augmented reality (also called Image Recognition) uses a camera and
some type of visual marker, such as a QR/2D code, to produce a result only when
the marker is sensed by a reader. Marker based applications use a camera on the
device to distinguish a marker from any other real world object. Distinct, but simple
patterns (such as a QR code) are used as the markers, because they can be easily
recognized and do not require a lot of processing power to read. The position and
orientation is also calculated, in which some type of content and/or information is
then overlaied the marker.
The Ultimate Guide to Augmented Reality Technology
http://www.realitytechnologies.com/augmented-reality
8. Marker Based Augmented Reality
The Ultimate Guide to Augmented Reality Technology
http://www.realitytechnologies.com/augmented-reality
9. Markerless Augmented Reality
• As one of the most widely implemented applications of augmented reality,
markerless (also called location-based, position-based, or GPS) augmented reality,
uses a GPS, digital compass, velocity meter, or accelerometer which is embedded in
the device to provide data based on your location. A strong force behind markerless
augmented reality technology is the wide availability of smartphones and location
detection features they provide. It is most commonly used for mapping directions,
finding nearby businesses, and other location-centric mobile applications.
The Ultimate Guide to Augmented Reality Technology
http://www.realitytechnologies.com/augmented-reality
10. Markerless Augmented Reality
The Ultimate Guide to Augmented Reality Technology
http://www.realitytechnologies.com/augmented-reality
11. Projection Based Augmented Reality
The Ultimate Guide to Augmented Reality Technology
http://www.realitytechnologies.com/augmented-reality
12. Superimposition Based Augmented Reality
• Superimposition based augmented reality either partially or fully replaces the original view
of an object with a newly augmented view of that same object. In superimposition based
augmented reality, object recognition plays a vital role because the application cannot replace
the original view with an augmented one if it cannot determine what the object is. A strong
consumer-facing example of superimposition based augmented reality could be found in
the Ikea augmented reality furniture catalogue. By downloading an app and scanning
selected pages in their printed or digital catalogue, users can place virtual ikea furniture in
their own home with the help of augmented reality.
The Ultimate Guide to Augmented Reality Technology
http://www.realitytechnologies.com/augmented-reality
13. Superimposition Based Augmented Reality
The Ultimate Guide to Augmented Reality Technology
http://www.realitytechnologies.com/augmented-reality
14. AR: What is its connection to logistics and
supply chain management?
• Your customers want goods faster. You want more accuracy and streamlined
processes from your employees. Recently, there has been talk about the use
of augmented reality (AR) within the distribution center. Using AR, we can
redefine our current processes and integrate with today’s most advanced
automation technology.
Augmented Reality (AR): The Future of Supply Chains?
https://www.bastiansolutions.com/blog/index.php/2017/03/24/augmented-reality-ar-the-future-of-supply-chains/
15. The DHL example
• DHL is one of the world’s leading logistics companies, with $59 billion revenue and
operations in 220 countries. The company successfully ran a set of experiments last
year using smart glasses to improve its warehouse operator efficiency by 25%. DHL
now wants to scale its new AR technology across the globe and use it to improve all
parts of its supply chain operations.
How Augmented Reality improves supply chain management for DHL
https://rctom.hbs.org/submission/how-augmented-reality-improves-supply-chain-
management-for-dhl/
16. The DHL example
In DHL’s warehousing operations, every order must be picked by an operator and
moved to the right platform for customer delivery. Each operator must keep track of
specified quantities, package types and zip codes, requiring great attention to detail.
Operators are required to count inventory and manage data entries related to order
picking. Any damage or misplacement of orders means additional cost for the
company. The task of order picking accounts for 60% of DHL’s total cost of
warehousing operations.
How Augmented Reality improves supply chain management for DHL
https://rctom.hbs.org/submission/how-augmented-reality-improves-supply-chain-management-for-dhl/
17. The DHL example
DHL’s new AR glasses improve efficiency in a number of ways. First, when workers look at
digital picking lists, the glasses present the best route to load the order, reducing travel time in
the warehouse. Second, workers no longer have to scan packages using barcode scanners with
their hands, as the glasses do that for them. Finally, image recognition software will check that
the worker has arrived to the right location when picking up the orders, and guide them to the
correct item on the shelf. AR has had a remarkable impact on DHL, contributing a 25%
increase in worker efficiency and a 40% reduction in errors in settings where it has been
implemented.
How Augmented Reality improves supply chain management for DHL
https://rctom.hbs.org/submission/how-augmented-reality-improves-supply-chain-management-for-dhl/
18. The DHL example
How Augmented Reality improves supply chain management for DHL
https://rctom.hbs.org/submission/how-augmented-reality-improves-supply-chain-management-for-dhl/
19. The DHL example
DHL believes that Augmented Reality can positively impact other parts of its supply
chain, as well. For example, the AR glasses can improve transportation efficiency.
When picking up packages, the glasses can save time through automated completeness
checks and pickup confirmations. When shipping packages abroad, the glasses can
provide necessary trade documentation and translate labels. When dropping off
packages, the glasses can ensure load optimization and more efficient navigation for
first-time deliveries, both outdoors and indoors.
How Augmented Reality improves supply chain management for DHL
https://rctom.hbs.org/submission/how-augmented-reality-improves-supply-chain-management-for-dhl/
20. The DHL example
DHL rolls out global augmented reality program
http://www.dhl.com/en/press/releases/releases_2016/all/logistics/dhl_rolls_out_global_augmented_reality_program.html
21. AR: why is it so revolutionary?
• Applications of augmented reality can be as simple as a text-notification or as
complicated as an instruction on how to perform a life-threatening surgical
procedure. They can highlight certain features, enhance understandings, and provide
accessible and timely data. Cell phones apps and business applications are a few of
the many applications driving augmented reality application development. The key
point is that the information provided is highly topical and relevant to what
you want you are doing.
The Ultimate Guide to Augmented Reality Technology
http://www.realitytechnologies.com/augmented-reality
22. “See” Supply Chain Operations Differently
Business use cases also extend to how AR will transform logistics. This section has
several dimensions:
• Warehouse planning
• Pick-and-pack services
• Last mile of delivery
How Augmented Reality and Apple Will Transform Retail & Logistics Supply Chains
http://www.supplychain247.com/article/how_augmented_reality_and_apple_will_transform_retail_logistics
23. “See” Supply Chain Operations Differently:
Warehouse Planning
As warehousing operations transform into more than just storage facilities and
distribution locations, layouts will have to change to accommodate varying
sections of business; for example, product assembly, labelling, and more. With
AR, new arrangements can be planned at full-scale to more accurately test
placement and workflow before implementation.
How Augmented Reality and Apple Will Transform Retail & Logistics Supply Chains
http://www.supplychain247.com/article/how_augmented_reality_and_apple_will_transform_retail_logistics
24. “See” Supply Chain Operations Differently:
Pick-and-Pack Services
For many warehouses, pick-and-pack services, especially during peak season,
are completed by temporary workers. Implementing an AR solution for pick-
and-pack activities has shown significant improvements in productivity by
shortening the learning curve and providing constant picking validation that
updates the WMS in real-time
How Augmented Reality and Apple Will Transform Retail & Logistics Supply Chains
http://www.supplychain247.com/article/how_augmented_reality_and_apple_will_transform_retail_logistics
25. “See” Supply Chain Operations Differently:
Pick-and-Pack Services: Last Mile Delivery
Last Mile Delivery is the most expensive step for eCommerce retailers. As customer bases grow and are
more spread out, getting products shipped to customers cost-effectively has become a priority for many
retailers. According to a DHL Trend Research report, it’s estimated that drivers spend 40-60% of their
time locating the correct boxes within their truck for the next delivery. For many, this process relies on
their memory of how the truck was loaded. An AR app could be used to streamline the time it takes to
identify packages upon delivery and reduce the time it takes now to figure out what package goes where.
Additionally, much of Last Mile Delivery logistics has to do with actual navigation. When a driver is
delivering to a location for the first time or has to navigate the interior of a building, AR can be used to
overlay the environment and show directions. If there aren’t any directions available, a driver could add
markers to update an independent database - essentially crowdsourcing users to build out the database.
How Augmented Reality and Apple Will Transform Retail & Logistics Supply Chains
http://www.supplychain247.com/article/how_augmented_reality_and_apple_will_transform_retail_logistics
26. For logistics augmented reality is reality
3 Tech Trends Shaping the Future of Global Logistics: http://www.supplychain247.com/article/3_tech_trends_shaping_the_future_of_global_logistics/dhl
