A N A U G M E N T E D P E R S P E C T I V E

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Emerging technologies are changing how original equipment manufacturers and the global supply chain operate. One megatrend in particular is doing

more than just providing a composite view of the world, it is superimposing a paradigm shift that is most welcome.

Augmented Reality (AR) and Virtual Reality (VR) demonstrations were a standout attraction at the 2018 IAA Commercial Vehicles Show in Hanover, Germany. While, the novelty of immersing yourself in digital surroundings can be entertaining, the technology can also be applied to functional, educational applications, which is something that German trailer builder, Schmitz Cargobull, has capitalised on in a big way.

Schmitz Cargobull is developing a series of training tools for its engineers and dealer network. On show at IAA was a reefer diagnostic tutorial where the subject enters an immersive VR environment to perform basic tasks on a refrigeration unit. The VR program provided a handy checklist and offered tips to assist the user with performing basic instructions from picking up tools to opening doors. Attention to detail was immaculate and by working in a virtual environment, the user is assured of their safety.

Following the VR reefer tutorial, there was also a live demonstration of Augmented Reality (AR) via a mobile phone app for the purposes of helping technicians onsite via a remote technical support team. The app can help point the tech in the right direction, with visual cues and additional information. It is also possible to review manuals and documentation with the assistance of a

trained third party to walk a tech through a number of tasks.

Other manufacturers have also used AR and VR to assist vehicle operators with their day-to-day freight tasks. Materials handling specialist, Hiab, has been utilising its HiVision system for crane operators since 2016. Last year, the control system was approved by the European inspection company, Dekra, and certified by TÜV Rheinland, a leading international provider of technical services.

Through the use of 3d VR goggles and cameras, HiVision simulates what it is like for a crane operator to sit in a truck cabin. What makes this technology a boon for safety and efficiency is its capability to simulate in real-time the surroundings of the heavy vehicle, without the equipment obscuring visibility. Hiab was the first in the industry to present a new, innovative solution for operating forestry cranes that improved safety, ergonomics and productivity.

“For us, the development of HiVision was all about improving the work environment and safety of operators,” said Hiab Product Manager HiVision – Forestry and Recycling Cranes, Toni Ahvenlampi. “In addition, we sought productivity benefits that would bring financial savings to our customers’ businesses. This solution was

radical, but we believed in it because it provided an opportunity to move the operator from a risk environment to the safest and most comfortable work environment during loading, which is the truck cabin. Besides, the weight savings offered the chance to add more payload.”Meanwhile, in the US, Atlanta-based company, United Parcel Service (UP), has launched its VR owner-driver training at nine UPS Integrad training facilities.

IT experts at UPS created the VR training modules that users see and hear inside VR headsets like the HTC Vive. Students using the modules must verbally identify potential road hazards such as pedestrians, parked cars and oncoming traffic. The 360-degree view inside the headset is realistic down to the finest details, according to UPS.

“Virtual Reality offers a big technological leap in the realm of driver safety training,” said UPS Chief Information and Engineering Officer, Juan Perez. “VR creates a hyper-realistic streetscape that will dazzle even the youngest of our drivers whose previous exposure to the technology was through video games.”

The VR training modules will replace the touchscreen devices UPS Integrad facilities currently use to teach lessons on road hazards. This VR training is intended for those who drive package delivery trucks however the company is reportedly exploring VR and AR for training heavy vehicle operators.

UPS Integrad facilities teach students the fundamentals of driving delivery vehicles and delivering packages using a hands-on approach – students even practice driving UPS delivery trucks in a replica outdoor city that has real streets and sidewalks and simulated delivery and pickup sites.

“This training is foundational, and Virtual Reality brings it to life,” said UPS Integrad expansion director, Jeanne Lawrence. “VR complements real-world training in a way that deeply engages our employees in the UPS Integrad curriculum.”

Global courier company, DHL, has also been especially proactive in exploring new opportunities for logistics operations with AR and VR. In the wake of the Pokémon GO craze – and inspired by the follow-up success of Snapchat, which allows users to overlay live imagery with digital filters – it commissioned an in-depth report on the potential impact of AR on logistics and freight management. The report found that the expansion of our physical reality by adding layers of computer-generated information could fundamentally change the way we move freight from A to B – and that real-life applications are already within reach.

Transport businesses may utilise AR to optimise route selection in real time, for example. “AR driver assistance apps – either with glasses or windshield display – could be used to display information in real-time in the driver’s field of vision,” the report speculates. “In effect, AR will be the successors to today’s navigation systems, with a key advantage that the driver doesn’t have to take their eyes off the road anymore.”

DHL’s report takes the concept even further, saying augmented reality systems could also provide drivers with live information on the cargo in the back – a function especially helpful for livestock transport and temperature-sensitive freight. AR would allow drivers to visually check their cargo without opening the trailer and compromising the temperature inside. Mechanical faults or human error while loading could be addressed earlier and more effectively, DHL argues, in turn empowering transport businesses to provide a new level of quality assurance.

In addition to managing cargo temperatures, AR systems could also be used to streamline the freight loading process. “AR devices could [replace] the need for printed cargo lists and load instructions,” DHL found. “At a transfer station, for example, the loader could obtain real-time information on their AR device about which pallet

D H L ’ S R E P O R T TA K E S T H E C O N C E P T E V E N F U R T H E R , S AY I N G A U G M E N T E D R E A L I T Y S Y S T E M S C O U L D A L S O P R O V I D E D R I V E R S W I T H L I V E I N F O R M AT I O N O N T H E C A R G O I N T H E B A C K – A F U N C T I O N E S P E C I A L LY H E L P F U L F O R L I V E S T O C K T R A N S P O R T A N D T E M P E R AT U R E - S E N S I T I V E F R E I G H T.

to take next and where exactly to place this pallet in the vehicle. The AR device could display loading instructions, with arrows or highlights identifying suitable target areas inside the vehicle.”

Such information could be generated either in advance by planning software or on the spot using ad-hoc object recognition systems, a technology first presented to the trailer community by German trailer manufacturer, Krone, at the 2016 IAA Commercial Vehicles Show. Krone’s ‘intelligent load compartment monitoring’ system is based on a 3D camera installed inside the trailer, allowing a Tetris-inspired computer program to assess the load situation and suggest the best location for the next pallet.

According to DHL, technologies like that may also help transport businesses manage the disruptive effects of e-commerce. “The growing use of e-commerce has led to a boom of last-mile delivery services, which is the final step in the supply chain and often the most expensive one,” DHL said. “Therefore, the optimisation of last-mile delivery to drive down product cost and increase profit is a promising field of application or AR devices.”

Just as DHL speculated, the application of AR is indeed driving innovation in the last mile space. US-based logistics business, XPO Logistics, added AR to its Ship XPO consumer self-service platform in 2018 so that shoppers will use the visualisation technology prior to the delivery of heavy goods to determine the ideal placement of items like beds and appliances in their home.

“Augmented reality is another innovation that our retail and e-commerce customers can offer to consumers, providing more control over the shopping experience,” said XPO Logistics President, Troy Cooper. “The technology creates a virtual image of how an item will look in a given room, dramatically decreasing the likelihood of returns. Augmented reality enhances the efficiency of the entire last mile process, reducing time inside the home and the risk of product damage.”

This commercial transformation, dubbed by technology and e-commerce conglomerate, Alibaba, as ‘New Retail’ is set to revolutionise the customer experience.

In 2018, Alibaba and US-based coffee company, Starbucks, announced a partnership, boasting that it would transform China’s coffee industry. At the time, there were plans to pilot delivery services in September 2018 to establish ‘Starbucks Delivery Kitchens’ for delivery order fulfilment and integrating multiple platforms to co-create an unprecedented virtual Starbucks store.

“Starbucks is more than a destination for premium coffee and we share the same vision to pioneer a new coffee

culture and lifestyle through innovation and technology,” said Alibaba Group CEO, Daniel Zhang.

The strategic partnership is part of Alibaba’s broader New Retail push, which aims to transform how commerce is conducted by merging online and offline experiences. New Retail was introduced by Alibaba in 2016 and has since become a hallmark strategy of the retail industry.

“Our Chinese customers have a high expectation of their Starbucks Experience and we are proud to introduce a premium delivery experience that reflects the same service and quality they’ve come to love and expect from us in our stores – we will never compromise,” said Starbucks China CEO, Belinda Wong. “More significantly, through our partnership with Alibaba, we are breaking the physical and virtual barriers between the home, office, in-store and digital space, making China the first Starbucks market to deliver a seamless Starbucks Experience across all facets our customers’ lives and further reflecting the uniqueness and strategic importance of the market.”

A key strategic initiative under the partnership is the development of a pioneering, first-of-its-kind virtual Starbucks store in China. This digital partnership will see Alibaba develop a centralised online management hub, with the unique capabilities to integrate and deliver a consistent Starbucks Experience across multiple digital platforms.

So, where to from here? As AR and VR continue to disrupt everything from manufacturing to shipping to the customer experience, other megatrends including last mile delivery must adapt along with these fluid, technological innovations. It will be interesting to see how these influences shape the industry in the years to follow.