Download Csi Augmented Reality Report 290414 PDF

TitleCsi Augmented Reality Report 290414
TagsTechnology Computing Augmented Reality Cargo Virtual Reality
File Size2.5 MB
Total Pages28
Document Text Contents
Page 1

Changing the way we see logistics –

a DHL perspective


Powered by DHL Trend Research

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DHL Customer Solutions & Innovation
Represented by Matthias Heutger,
Senior Vice President Strategy,
Marketing & Development, DHL CSI
53844 Troisdorf, Germany

Dr. Markus Kückelhaus
DHL Trend Research

Gina Chung
DHL Trend Research


Holger Glockner, Kai Jannek, Johannes Mahn, Björn Theis

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12 Augmented Reality Best Practice

AR-based interfaces are not limited to computer devices.
They can be used to control cars, entertainment, and
household appliances such as heating systems. One
example is the home automation system Revolv, which
is still under development. In combination with Google
Glass, the system gives the user control over all digital
devices in the household (e.g., the light system and
locking system). The result is an augmented ‘smart’
household environment, which can be remotely
controlled by voice or fingertip.

Virtual interfaces can go beyond the home, as shown
by Yihaodian, the largest food e-retailer in China. The
company recently announced that it was going to open
up the first AR supermarket chain in the world.

Each of these supermarkets will have a floor space of
around 1.200 m2 and 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. This is an enhancement of similar
concepts such as the QR-based Tesco supermarkets in
South Korea’s subway stations.

Figure 24: Revolv; Source: Revolv

Figure 25: Infi nite Yihaodian; Source: Augmented Reality Trends

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13Augmented Reality in Logistics


After the wide range of best practice identified in the four
clusters above, we now examine implications of AR in the
logistics industry. Although AR is in relatively early stages
of adoption in logistics, it could offer significant benefits.
For example, AR can give logistics providers quick access
to anticipatory information anytime and anywhere. This is
vital for the prospective and exact planning and operation
of tasks such as delivery and load optimization, and is
critical to providing higher levels of customer service.

At DHL Trend Research, we are transferring to logistics
what we see as best practice in other industries, and we
are envisioning several use cases for AR in the logistics
industry. These serve as a visionary outlook and the basis
for discussion rather than a concrete prediction of how
AR in logistics will develop in the future.

These use cases are arranged in the following categories:

• Warehousing Operations
• Transportation Optimization
• Last-mile Delivery
• Enhanced Value-added Services

3.1 Warehousing Operations

AR has so far shown most promise for logistics in
warehousing operations. These operations are estimated
to account for about 20 % of all logistics costs, and the
task of picking accounts for 55 % to 65 % of the total cost
of warehousing operations.6 This indicates that AR has
the potential to significantly reduce cost by improving
the picking process. It can also help with the training
of new and temporary warehouse staff, and with
warehouse planning.

Pick-by-Vision: Optimized Picking

In logistics, the most tangible AR solutions are systems
to optimize the picking process. The vast majority of
warehouses in the developed world still use the pick-by-
paper approach. But any paper-based approach is slow
and error prone. Furthermore, picking work is often
undertaken by temporary workers who usually require
cost-intensive training to ensure they pick efficiently
and without making errors.

Systems by Knapp, SAP, and Ubimax are currently in
the late field-test phase and consist of mobile AR
systems such as a head-mounted display (HMD),
cameras, a wearable PC, and battery packs that provide
enough energy for at least one work shift. The vision
picking software offers real-time object recognition,
barcode reading, indoor navigation, and seamless
integration of information with the Warehouse
Management System (WMS). A key benefit of vision
picking is its provision of hands-free intuitive digital
support to workers during manual picking operations.

By using a system like this, each worker can see the digital
picking list in their field of vision and – thanks to indoor
navigation capabilities – see the best route, reducing their
travel time by efficient path planning. Using automated
barcode scanning capabilities, the system’s image recogni-
tion software (e.g., provided by Knapp KiSoft Vision7) can
check whether the worker has arrived at the right location,
and guide the worker to quickly locate the right item on
the shelf.

6 De Koster, René (2006): Design and control of warehouse order picking: A literature review. European Journal of Operational

Research. 182(2): 481–50

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