Augmented Reality (AR) has become increasingly popular in various industries, including logistics and supply chain management. AR is the integration of digital information with the real world, providing a new way to visualize, analyze and interact with data. AR can be used to improve operations, increase efficiency and ultimately save money in various ways. In this blog post, we'll take a look at the financial benefits of using AR in logistics and supply chain management.
Improved efficiency in warehousing
One of the main areas where AR can be useful in logistics and supply chain management is in warehousing. Implementing AR technology in warehouse operations can help reduce errors and increase efficiency. AR devices can be used to guide workers through the picking process, reducing the time it takes to complete tasks. AR can also help workers avoid mistakes by giving them real-time visual cues as they work, reducing the need for rework and returns. According to a study by DHL, companies can save up to 15% in warehousing costs by using AR.
Streamlined supply chain management
AR can also be used to streamline supply chain management. By overlaying real-time data onto the physical world, managers can make more informed decisions and respond to supply chain disruptions more quickly. AR can be used to track shipments, monitor inventory levels, and manage vendor relationships. A study by PWC found that supply chain management companies can improve productivity by 15% by using AR.
Improved Safety
Along with increasing efficiency and productivity, AR can also improve safety in logistics and supply chain operations. By providing workers with real-time visual cues, AR can help them navigate around warehouse obstacles and reduce the risk of accidents. AR can also be used to provide workers with safety instructions and training in real-time. Improved safety means fewer accidents, which can ultimately reduce costs associated with employee injuries.
Conclusion
Overall, the financial benefits of using AR in logistics and supply chain management are significant. By improving efficiency and reducing errors, companies can save on inventory and warehousing costs. By streamlining supply chain management and improving safety, companies can also reduce costs associated with supply chain disruptions and employee injuries. For companies looking to improve their operations and reduce costs, AR is a technology well-worth considering.