Supply chain efficiency has become a major focus area for businesses aiming to optimize their operations and enhance productivity. Augmented Reality (AR) technology—blending the digital and physical worlds by overlaying digital information onto real environments—offers a promising solution to tackle these challenges. Known as BP.189 in SCOR practices, AR helps improve processes such as picking, sourcing, transformation, and returns. This post will explore three real-world examples of companies using AR in their supply chain processes and the benefits they’ve realized from these innovations.
What is Augmented Reality in Supply Chain?
Augmented Reality leverages AR devices like smart glasses to superimpose holographic information onto a user’s real-world environment. For supply chains, AR can streamline warehouse operations, speed up production, reduce machine downtime, minimize costs, and improve worker engagement. By allowing operators to receive real-time visual instructions in their field of view, AR keeps workers hands-free and focused on tasks, such as picking or packing, improving efficiency without the need for extensive hardware.
Example 1: DHL and AR for Efficient Warehouse Picking
DHL, a global leader in logistics, pioneered AR technology in warehouse picking. By equipping employees with AR-enabled smart glasses, DHL guided workers through picking processes with real-time instructions on item location, quantity, and route within the warehouse. As a result, employees no longer needed to rely on handheld devices or pick sheets, reducing errors and improving cycle times. The AR solution led to a significant boost in productivity and accuracy, with DHL reporting a 15% improvement in efficiency.
Read more about DHL’s AR implementation on their official website. https://www.supplychaindive.com/news/dhl-vision-picking-program-google-glass-wearables/555636/
Example 2: Boeing’s Use of AR in Production and Assembly
In the aerospace industry, precision and efficiency are paramount. Boeing adopted AR technology in the assembly of its aircraft, using AR glasses to assist technicians with wiring harness installations. These glasses overlayed visual instructions directly onto the physical components, guiding workers through complex assembly processes without interrupting workflow. The AR setup not only improved assembly accuracy but also cut down the time needed for production. Boeing reported a reduction in production time by 25% and a significant decrease in errors, demonstrating AR’s value in enhancing manufacturing efficiency.
For more information, visit Boeing’s technology and innovation page. https://link.springer.com/chapter/10.1007/978-3-030-67822-7_20
Example 3: Porsche’s Use of AR for Faster Service and Maintenance
Porsche utilizes AR technology to reduce downtime in vehicle maintenance and repair, particularly for high-end models requiring specific expertise. Technicians use AR glasses to access repair manuals and real-time support, viewing instructions and guidelines superimposed on the vehicle in their field of vision. This allows them to perform tasks faster, with access to remote assistance when needed, which ensures vehicles are back on the road sooner. Porsche has cut service time significantly and enhanced customer satisfaction by reducing wait times.
Learn more about Porsche’s AR solutions on their innovation page. https://carbuzz.com/news/heres-how-porsche-uses-augmented-reality-to-fix-your-car/
Key Processes and Metrics Supported by AR
Using AR in supply chain operations supports various SCOR processes:
- Warehouse Functions: AR improves picking (F1.3, F2.3, F3.3) and packing (F1.4, F2.4, F3.4) by providing clear, real-time guidance on task execution.
- Production: Tasks such as issuing components, transforming, and inspecting products (T1.3 to T1.8) can benefit from AR instructions, reducing errors and enhancing production flow.
- Returns: In return processes, AR enables accurate product condition assessment and diagnostics (R1.4, R2.4), ensuring high compliance and service standards.
Metrics such as Perfect Customer Order Fulfillment (RL.1.1), Transform Cycle Time (RS.2.3), and Total Supply Chain Management Cost (CO.1.1) can see marked improvements from AR use, reflecting the technology’s impact on accuracy, speed, and cost reduction.
Conclusion
AR technology offers substantial advantages for supply chain operations by merging digital instructions with real-world environments. From warehouse picking with DHL, to precise assembly at Boeing, to streamlined maintenance at Porsche, AR is becoming a vital tool for companies striving to enhance efficiency, reduce errors, and improve worker engagement. As AR technology advances, it’s likely to become an integral part of supply chains worldwide, revolutionizing how tasks are performed across various stages of the supply chain.
Embrace the future of supply chain management with AR to gain a competitive edge in productivity and efficiency.
