5 Ways Augmented Reality Is Disrupting the Supply Chain

Nearly everything we eat, wear and buy – from cranberries to crankshafts – moves through a supply chain. And businesses that help shepherd all those products along that chain account for an astounding 7.5% of U.S. GDP.

Because of the high costs of moving goods from point A to point B, corporations are always on the lookout to save money in addition to improving service. Emerging technology may be an answer.

Thanks to innovations in artificial intelligence and distributed ledger technology known as blockchain, augmented reality is poised to transform the software used to manage supply chains. Augmented reality, which overlays information onto the real world (think of that yellow line shown during televised football games to indicate the location of the first down marker) will now help truck drivers, warehouse workers, and management keep track of products from the second they leave the factory until the moment they arrive at your door.

Using sensors on packaging, company managers will be able to perform advanced analysis of how a company’s products are doing. In real-time, a factory can increase or decrease production based on that day’s sales at thousands of retail locations. Data scientists working on the digital supply chain can generate new insights from their products regardless of whether the shipment is sitting in the back of a delivery truck or on a distributor’s warehouse shelf. If sales are as robust as forecast, manufacturers can cut losses by making fewer products and redistributing items to where the demand is.

With over one billion AR-enabled smartphones and tablets already in use, companies don’t have to wait for low-cost augmented reality glasses to start reaping the benefits of augmented reality. Here are five ways that AR is transforming the supply chain into a nimble tool for global distribution:

Augmented reality is being used in warehouses to more efficiently locate products and pack them in outgoing boxes. One of the costliest parts of running a “pick and pack” service is training new workers to navigate a large warehouse and find the one product they are searching for. AR glasses can paint an imaginary line on the warehouse floor to simplify the searching and training. During the peak holiday season, temporary workers need to be on-boarded quickly. AR shortens the learning curve by providing new hires with constant feedback on their glasses about how they are doing and what can be improved. Picking and packing becomes more like a game of Pac-Man, in which workers must gather the correct items before time runs out. Field tests of AR pick-and-pack systems have reduced errors by as much as 40%. Some AR glasses can even be used to provide graphic overlays of packages on shelves, thereby minimizing the time needed to find and identify items to be picked. Once packed, the AR software can instantly provide carriers with handling instructions and anticipated shipping times.

Robots are the ultimate human augmentation. Workers sitting comfortably at their desks can wear AR glasses that let them see what a robot in the warehouse sees.