DHL rolls out global augmented reality program
- DHL Supply Chain is expanding vision picking pilots with Google and Vuzix smart glasses, and Ubimax software over the next six months across different industries
- Augmented reality market estimated to grow to $150 billion by 2020
- Initial phase focuses on pilots in the United States, the Netherlands and the United Kingdom
“We are excited to further test and develop vision picking as a solution that can be readily available to our customers. More importantly, this technology is not just one step towards digitalizing manual processes on the shop floor, it also takes us one step closer towards Industry 4.0. Testing technologies like augmented reality, robotics and Internet of Things will continue to be a big part of our DNA,” said John Gilbert, CEO Supply Chain.
Pickers are equipped with advanced smart glasses which visually display where each picked item needs to be placed on the trolley. Vision Picking enables hands free order picking at a faster pace, along with reduced error rates. Throughout 2016, the smart glasses will be piloted across various industries such as technology, retail, consumer and automotive industries. The data available from these pilots will further determine the technology’s potential for broader implementation. The pilot sites are spread across the United States, Mainland Europe and the United Kingdom, with the Ricoh facility in Bergen op Zoom, the Netherlands, where the solution was first tested, being the launch site for this new exploration phase.
“The Vision Picking Program is DHL Supply Chain’s first translation of what augmented reality solutions can look like for supply chains. The broad spectrum in which the technology can be applied across various sectors is exciting to us, and the potential of this technology for business is still largely untapped. We believe this program is a game changer in how we run our supply chain operations and deliver added value to our customers,” states Markus Voss, CIO Supply Chain.
Augmented reality market with exceptional potential growth
The augmented reality and virtual reality market is said to be the next big thing after smartphones, although estimates vary significantly. Goldman Sachs estimate in their base case $80 billion for both virtual and augmented reality by 2025¹, while M&A advisory firm Digi-Capital predicts a total volume of $150 billion by 2020². Regardless of the actual size, exceptional growth seems to be certain if the current success of mobile app Pokémon Go is anything to go by. Investors are also convinced of the technology’s prospects, having made 225 venture capital investments worth $3.5 billion in the last two years.
DHL Supply Chain will be one of the first companies to widely implement the technology into their operations. The initial 2014 test in the Netherlands showed a significant increase in productivity, reduced error rates and overall rise in employee satisfaction, proving that augmented reality can make an impactful difference in reality.
¹ Goldman Sachs Equity Research, 13 January 2016, Profiles in Innovation: Virtual & Augmented Reality
² Digi-Capital, 2016