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Augmented Reality in Logistics

Augmented reality is still seen as an innovative technology to be unveiled, not very accessible and with most of its solutions under development. However, it is set to revolutionize the way we do business within the next 5 years. Its applications are numerous and include segments such as entertainment, social networks, health and well-being, games, education, among others.

Augmented reality can be defined as a technology for superimposing layers of digital information on the real environment, breaking down the boundaries between the physical and digital worlds. This technology provides the user with the correct information, at the right time and in the exact place through smartphones, tablets, glasses, lenses and other devices. Some of these devices were listed by consultant Fernanda Monteiro in the post:  Wearable: turning operators into men of iron.

In logistics, the applications are diverse and range from international cargo handling, picking, warehouse layout, vehicle loading, transportation navigation system, roadside obstacle alerts, etc. Below are four examples of application of augmented reality in logistics:

International cargo handling
International trade deals with export/import regulations that vary between countries. An operator supported by an augmented reality system could assess compliance with current commercial regulations of a given shipment and even translate instantly, speeding up the bureaucratic process of handling international cargo.

Picking
Picking is one of the most time-consuming and error-prone activities in storage and, perhaps, where augmented reality can bring the most tangible benefits in the short term. The smartglasses developed for picking can offer object recognition, barcode reading, indoor navigation and integration with the WMS, working as an intuitive support and leaving the operator's hands free during picking. By using a system like this, the operator can see the digital picking list in his field of vision and, thanks to the indoor navigation function, see the most efficient route, reducing handling time. You can also scan the barcode with the glasses and update the WMS in real time. Because it's intuitive, augmented reality can also reduce the time required for training, which is a huge advantage for a role that makes heavy use of temporary labor.

Warehouse Planning
Warehouses are no longer just spaces for storing inventory. They are increasingly adding other services to the chain such as kitting, labeling, packaging and even repairs. And to accommodate these services, the warehouse needs to go through constant adaptations of layouts and processes that can be planned through augmented reality. By superimposing a digital simulation on the real environment, it is possible to predict the necessary changes in the organization of the warehouse to meet the new activities and impacts on flows, without physically changing the entire layout before deciding on the new configuration. In this way, change decisions are more assertive and results are more predictable.

Vehicle Loading
To optimize the loading of vehicles, it is essential to plan their occupation, which can be done using specialized software. These programs consider criteria such as content, weight, dimensions, destinations and delivery process to maximize vehicle utilization. The loading bottleneck, however, is not in the planning, but in its execution. Augmented reality can replace the loading list and loading instructions with real-time guidance. The smart glasses display could point out the next pallet to be loaded and where it should be positioned inside the vehicle. In addition to making the instructions more intuitive, the system could adapt the loading plan during execution in case something goes out of plan.
While the adoption of augmented reality in logistics is still in its early stages, it can offer significant benefits across all functions. Some companies are already reaping the benefits of this technology, such as General Electric, which saw a 46% increase in storage and logistics performance with the use of smart glasses in 2017. Many other applications beyond those described above can benefit from virtual reality. Have you thought about this possibility for your operation?

 

References:
http://www.mhlnews.com/technology-automation/logistics-leader-adopting-augmented-reality

'http://www.globaltrademag.com/global-logistics/warehousing/augmented-reality-next-big-thing-global-logistics

http://www.dhl.com/content/dam/downloads/g0/about_us/logistics_insights/csi_augmented_reality_report_290414.pdf

https://ilos.com.br

Managing Partner of ILOS, Master in Business Administration from COPPEAD/UFRJ with extension at the European Business School – EBS, Germany and Business Administration from UFRJ. More than 10 years of experience in training and consulting projects, focusing on Logistics and Supply Chain. In the training area, he developed company games and online courses and today teaches classes in Data Analysis, Inventory Management, Warehousing Management, in addition to applying business games such as Beer Game in open and in-company programs in companies from different segments, such as Coca -Cola, Nestlé, ThyssenKrupp, Votorantim, Carrefour, Mallinkrodt, Souza Cruz, Via Varejo, Monsanto, Itaú, Renner, Ipiranga, among others. In consultancy, he carried out projects such as Redefinition of the Logistics Network, Inventory Management, S&OP Process Structuring and Diagnosis of Storage and Transport Operations in companies such as Coca-Cola, Souza Cruz, Editora Moderna, Petrobras, Ducoco, Ultragaz, Silimed, Eudora among others.

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