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From SCDigest's On-Target E-Magazine

- Feb. 24, 2015 -


Supply Chain News: New World of Augmented Reality Likely Coming to Logistics Applications

Matrix-like Download Capabilities May Not be too Far Away; Looking at Bar Codes Instead of Scanning Them


SCDigest Editorial Staff


Are you familiar with the fast-growing concept of "augmented reality?"

A new report from DHL's Trend Research group covers the basics of AR and then takes a deeper dive into emerging or potential applications in logistics.

What is augmented reality? The report says AR involves "the expansion of physical reality by adding layers of computer-generated information to the real environment."

SCDigest Says:

With AR and the head sets, the bar codes can be "scanned"/confirmed simply by looking at them with the camera.
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Not mentioned in the report, but perhaps the most commonly experienced form of AR today is the widely used yellow stripe displayed in pro and college football games to indicate the first down mark. That yellow stripe is of course not really on the field - it is added to the real video view of the game field by computer generation.

There are thousands of other real or emerging applications, some of them quite amazing. In the Matrix movies, characters can simply download a new "app" into their heads to learn something new, such as how to pilot a helicopter. Now, car makers and others are developing AR apps where a consumer will look at a part in an engine say through a cell phone camera, and instructions on how to test or replace the part will instantly appear alongside it.

Indeed, "scene recognition" is a generally critical aspect of AR technology, whether that is identifying a particular product on the store shelf so that additional information can be displayed on its make-up, or recognizing where an order picker is in a distribution center to confirm he or she is at the right location.

There are a wide number of devices that play in the augmented reality space, including smart phones and tablets, special headsets, smart glasses, stationary kiosks and more.

Although really a form of virtual reality, not augmented reality, as another example of where this is all heading, DHL reports that a company called Yihaodian in China is getting ready to open up a series of virtual supermarkets that will be located in "blank" public spaces (e.g., train or subway stations, parks, and college campuses).

"While the naked eye will just see empty floors and walls, people using an AR-capable device will see a complete supermarket, with shelves filled with digital representations of real-world products. To buy products, the user just scans each product with their mobile device, adding it to their online shopping cart. After completing their AR shopping tour, the user receives delivery of the products to their home," DHL says.

Logistics Applications

DHL cites a number of actual or potential AR apps in logistics, starting with order picking. It notes that companies such as Knapp, SAP, and Ubimax (and we would add Softeon to that list) are in late stage testing for AR systems that involve a head-mounted display (HMD), a camera, and a wearable wireless terminal.

"The vision picking software offers real-time object recognition, barcode reading, indoor navigation, and seamless integration of information with the Warehouse Management System," DHL notes.

The key benefit of these systems is that they are "hands-free," meaning an order picker doesn't have to carry and deal with a device such as a traditional radio frequency (FR) terminal, which reduces productivity versus a hands-free approach. That hands-free technology is key to the ability of Voice systems to drive productivity gains in order picking and other DC applications, but AR might deliver and even larger advantage by automating the product and location identification process.

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With RF systems, the picker generally has to manually scan the product and/or location bar code with the device. With Voice, the picker generally has to speak a product code or at least bar code check digit to do the same confirmation. Either way takes generally just a small amount of time for each pick, but across tens or hundreds of thousands of picks per year that can add up to a lot of time.

With AR and the head sets, the bar codes can be "scanned"/confirmed simply by looking at them with the camera. Additionally, the "pick list," the best path to the next location, and other information can also be displayed through the headset to the worker. Not mentioned in the DHL report, but such a system could also perform instant cycle counts in some cases by simply looking at the inventory in a location. That may not work in some piece-pick locations where the products are too jumbled inside a carton, but probably could work quite well say in a full case pick module by looking at how many tiers and loose cases there are on a pallet.

The DHL report cites other potential logistics applications for AR:

Warehouse Planning: This section is a little confusing, but basically says new processing areas and equipment, say for additional value-added service requirements, could be virtually inserted into views of the actual distribution center to test physical fit and workflows. SCDigest isn't sure this really adds much to traditional ways of doing this analysis, but we'll see.

Load Completeness: In some situations, it may be possible to simply look at say a line-up of pallets in a staging lane waiting to be loaded on the truck and validating that the right quantities and products are there. Where this would get tricky is for multi-SKU pallets that have "embedded' cartons not visible from the outside, but it seems to us there is some potential here.

Traffic Congestion: DHL says windshield-based displays are likely to replace the current approach to GPS and navigation to assist truck drivers in finding the most efficient path from point A to B without ever taking their eyes off the road. Such displays could also present information relative to the status of the load, such as the temperature throughout the trailer.

Freight Loading: To maximize load efficiency, many company use software to optimize product placement in truck trailers or ocean containers to optimize cube utilization. However, such loading plans are generally output as printed documents which must be dealt with and translated into physical actions and moves. DHL says with AR those optimal loading plans could be displayed say on a fork truck drivers's headset to guide the loading operations, likely making them much more efficient.

Parcel Loading and Drop-Off: AR could assist in the intelligent loading of a delivery truck roughly in reverse stop sequence. It would also guide a driver to precisely the correct address, again through a windshield type display, addressing what DHL says is actually a big issue in terms of driver productivity. Finally, smart glasses or perhaps a smart phone could point the driver to exactly where the parcel is in the back for each stop, eliminating errors and reducing search times.

DHL says a driver might also capture an image of say a building in an office complex, and see where all his or her deliveries for today are in the setting, and use that for stop planning or have the system devise the best route.

Assembly and VAS: DHL says that AR could also be used by 3PLs to perform assembly or other value-added services by presenting the right instructions to the 3PL operator, and possibly even quality checking that the assembly or service was performed correctly.

In conclusion, DHL says "it is clear that AR can play a part in almost every step of the logistics value chain."
While "only a few of these use cases are currently being developed, there are encouraging first signs of AR adoption in the logistics industry. This trend will continue to grow, and we hope that more logistics providers will participate to drive the AR revolution," the report adds.

The full report is available here: Augmented Reality In Logistics

Do you see much potential for augmented reality in logistics? Where and how?
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