In the era of digital transformation, Virtual Reality (VR) has emerged as a breakthrough technology revolutionizing various industries, and supply chain management (SCM) is no exception. VR is driving innovation by providing immersive and interactive experiences that improve operational efficiency, reduce costs, and provide better training methods. Over the past five years, the adoption of VR devices has increased significantly, moving from a niche device primarily for gamers to one with widespread applicability for both consumers and businesses.
The role of VR in supply chain management
Digital Twins. One of the primary uses of VR in SCM is the creation of digital twins, which are virtual replicas designed to accurately reflect a physical object or system. This enables organizations to recreate parts of their supply chain in the virtual world, test scenarios, model different nodes, modes, flows, and policies, and understand how decisions or disruptions impact network operations. The technology supports end-to-end visibility and traceability, enabling supply chain practitioners to spot patterns in highly complex and dynamic behaviors.
Product and process design. VR enables companies to visualize designs in a 3D environment, allowing for rapid iteration and evaluation. This interactive visualization capability enhances computer-aided design (CAD) capabilities and drives engagement for engineering employees.
Data and process visualization: VR provides an immersive platform to visualize complex data and processes, helping supply chain managers better understand and manage their operations.
Workforce collaboration: The audio and video capabilities of VR allow employees to collaborate in a shared virtual environment, which is especially beneficial for companies with global operations.
Drive innovation: Trends indicate that VR adoption drives innovation and enhances remote virtual collaboration.
VR for Training and Education
VR is also changing the way employees are trained. It allows employees to practice and develop their skills in a safe environment without facing real-world risks. This realistic and immersive approach accelerates the learning process and improves memory retention through experiential learning. It’s a hands-on approach to learning, which leads to more efficient operations and a more confident workforce. Additionally, VR is also making inroads in education, providing students with an immersive learning experience and helping them develop career skills.
Companies using VR
Many businesses are harnessing the power of VR to enhance their operations.
XPO Logistics is one of the latest logistics companies to use VR to train employees, DHL uses it for workflow guidance in the picking process, and UPS is using VR to give students a realistic driving experience before they drive a real package truck.
Walmart is using VR to train its drivers, giving them a realistic driving experience before they drive real package delivery vehicles, and Amazon is using VR to simulate loading and unloading trucks in warehouses.
Walmart is using VR simulations to train employees in different logistics scenarios, resulting in safer, more efficient operations.
Boeing Starliner will use VR to train astronauts, realistically simulating each stage of a commercial crew mission.
Warby Parker is using VR to let customers try on virtual frames through augmented reality, Apple uses Apple Vision Pro to showcase their products, and Microsoft’s HoloLens is used across industries from healthcare to manufacturing. Meta (formerly Facebook) is also promoting the use of VR goggles, helping to expose current and future consumers to VR.
VR in Academia
Arizona State University (ASU) is also using VR to enhance the learning experience for students in the field of supply chain management. ASU piloted a program called WP Coffee, a virtual reality immersive classroom experience from Dreamscape Learn. It’s part of the business school’s mission to leverage VR technology to enhance student learning. The goal is to turn theory into an experience, making learning more dynamic and immersive.
The program is set in a virtual coffee shop and teaches students operational skills and queue management. Students can make decisions such as purchasing coffee equipment, investing in additional staff to improve efficiency, or changing the store’s appearance. The simulation provides real-time updates on how these decisions affect the store’s KPIs such as the number of customers waiting in line, finances, and net profit generation.
Hurdles and disadvantages of implementation
VR technology is still evolving rapidly, and operational maturity is still low, leading to a lack of full-scale enterprise-level adoption. The reason is that, despite the benefits of VR technology, there are several hurdles to its adoption. These hurdles include the high cost of VR equipment, the need for specialized training to use these tools, IT requirements, technical challenges in integrating VR into existing systems, resistance to VR adoption due to unfamiliarity with the technology, and the possibility that users may experience motion sickness and discomfort during prolonged VR sessions.
Additionally, the effectiveness of VR training is still being studied, and there are concerns about data privacy and security when collecting and analyzing data. However, despite these challenges, VR has great potential to transform SCM and drive innovation and efficiency. As the technology continues to evolve and costs fall, we expect to see greater adoption of VR in SCM, further revolutionizing the industry to increase efficiency, enhance collaboration, improve training, and drive future innovation.
Antonios Printezis is a Clinical Professor in the Department of Supply Chain Management at the W. P. Carey College of Business at Arizona State University.
