by MSc. Nguyễn Ngọc Danh – Economics Faculty, UEH School of Economics, Law and State Management 14/04/2022, 02:36

What role does AR technology play in intralogistics?

Recently, augmented reality technology (AR) has opened up many new directions of application and development, helping to improve the operational efficiency and competitiveness of enterprises in the field of logistics in general and intralogistics services in particular.

Applying AR technology to order-picking will bring out the best in the potential and benefits of this technology. 

AR technology is rated relatively high in terms of investment value as well as the scope and initial investment cost that can match the existing facilities and operating procedures of enterprises operating in the field of intralogistics in Vietnam. However, most enterprises operating in the field of intralogistics in Vietnam have not applied AR reality technology yet. The integration of this technology into organizational processes in the field of intralogistics in the world at large and Vietnam in particular has posed diverse challenges. Research on the application of AR technology in the field of logistics and intralogistics focuses only on the ability to integrate technology and its impact on business processes, almost none of which analyzes the confusion and complexity obstacles that can arise from integrating AR technology into the organization. The article analyzes and proposes policies to increase the likelihood of success when applying AR technology to intralogistics services in Vietnam.

Stages with an AR application

Firstly, applying AR technology to order-picking will bring out the best in the potential and benefits of this technology. Given the important role of warehousing, goods picking takes a large amount of time and resources and accounts for about 55% of total operating costs (Khanzode & Shah, 2017). Moreover, the demand for fast and high-quality delivery is increasing in the age of technology, resulting in pressure to streamline the picking process. However, most warehouses around the world, and particularly in Vietnam, handle products manually using a paper-based approach.In addition, this type of work is often performed by short-term workers who may lack the experience and skills to do it without error. As a result, a number of AR technology innovations have been applied to large warehouses that store overcrowded goods during the peak seasons.

Secondly, train employees to perform value-added services. AR technology is used to train warehouse staff at a lower cost with flexible times and places. This type of training is useful during peak seasons when the warehouse workforce typically multiplies and boosts the productivity of newly hired warehouse workers to the highest possible level.

The roadmap for applying AR in companies operating in the field of intralogistics in Vietnam can be summarized through five steps as follows:

Setting goals for AR apps

Various tasks and subtasks can be implemented or improved using AR technology, but may require varying levels of technology and complexity. For example, a company may choose to install an appropriate AR app on a smartphone. With the right software, complex devices like AR smart glasses can be used for maintenance or assembly tasks.

Creating your own digital content

AR applications include software, hardware, and digital content. Corporate hardware and software can be easily purchased. However, digital content, as the core of the application, is the sole asset of the company and should be created within the company. For an object to be presented in an AR application, it needs to be digitized. This can be achieved by customizing existing 3D models of products and machines or by creating new models using 3D modeling or 2D/3D scanning. The wisest strategy for the company is to make a list of existing digital assets in 3D and other forms, and then proceed to build the digital content using 3D modeling or 2D, 3D scanning. On the other hand, digitizing documents of technical instructions listed as assembly instructions, machine repair instructions, design procedures, and so on into digital content suitable for AR applications is a complex task that requires a team that includes the technologists from this company, along with augmented practical specialists.

Locating AR devices and connected objects

Each of these technologies has both advantages and disadvantages. Marker pen technology is the simplest and seemingly most reliable method for Vietnamese companies. In the future, researchers are improving and upgrading these methods and developing hybrid methods based on a combination of available technologies.

Augmented reality applications, currently, are being the most popular in Intralogistics worldwide. (Source: Collected photos)

Determining the required AR device

For simple AR applications, devices such as smartphones and tablets are suitable. Manual commands (smartphones and tablets), voice commands (smartphones, tablets, and specialized glasses), and eye commands (smartglasses) are all supported by current AR devices.Devices that receive eye and voice commands save time and allow the users’ hands to perform other tasks. However, due to the nature of noisy industrial environments, it is difficult to filter out noise and function properly. As a result, companies use gear that aligns with their goals in the short term and develop a cross-platform approach that enables AR experiences across multiple device platforms in the long term.

Defining an approach to AR development

Two common approaches to AR software development are as follows: (i) standalone software that loads onto a device and can be run without an Internet connection, and (ii) access to AR content hosted on the cloud. The first approach is dependable and appropriate for high-resolution experiences; however, changing digital content is difficult.The second approach requires an Internet connection. However, developers can easily change and upgrade content on multiple devices. The second approach is suitable for companies that require frequent changes to digital content.

In addition, in order to increase user acceptance, businesses need to pay attention to solutions that focus on increasing communication between employees and reducing concerns regarding the privacy risks of users and those around them while using their AR devices.

The most promising stages for AR application in Vietnam are order picking and training, which can later be developed into other forms listed as maintenance, human-robot cooperation, and logistics planning. Key steps of AR implementation in companies are also outlined, covering broader requirements like non-technological requirements like the ease of application use and, most importantly, two aspects that risk the privacy of users and those around them. With the increasing interconnectedness and popularity of smart devices, two aspects of privacy risk need special attention for further study. In addition, the following areas of future research have been selected as the most promising: object and site recognition; eye and voice control; and controlling industrial systems through AR. These areas allow us to combine existing technologies and exploit their best properties to achieve the highest achievements, thus improving the digital industrial environment in intralogistics services.