DMS Lat 30° 6' 15.9444'' E Lon 1° 58' 14.0844'' S
HOW VIRTUAL REALITY
IS TRANSFORMING
LOGISTICS

01
Logistics is confronting a confluence of historic challenges. VR is emerging as the route to overcoming them.

For decades the modern world has taken seamless logistics for granted, but as a confluence of challenges threaten the status quo like never before, the industry has been thrust into the foreground. Global disruptors are forcing us to pay attention to the logistics which underpin our lives, and why new solutions are needed to adapt.

There is the urgent need to reduce carbon emissions, the impact of the economic rise of the Global South, and the reconfiguration of supply chains designed to bolster resilience in the wake of the Covid-19 pandemic and amid widespread geopolitical turbulence.

That a host of new technologies are being developed to overcome these challenges shouldn’t come as a surprise. What’s more unexpected is that Virtual Reality (VR) is emerging as a key driver to this transformation.

02
21st century
logistics

The challenges of 21st century logistics are tightly interwoven. Facilitating trade with the growing Global South requires a massive expansion of logistics infrastructure, with some estimates projecting as much as double current global freight emissions – which already accounts for up to 11% of total greenhouse gas emissions worldwide.

At the same time, there is a mass move toward localizing supply chains in a bid to strengthen them. “Moving manufacturing closer to home markets is protecting the flow of freight and creating resilience,” says Sultan Ahmed Bin Sulayem, Group Chairman and CEO of Dubai-based logistics giant DP World

In Economist Impact’s Trade in Transition 2023 report – sponsored by DP World – 20% of business leaders said they were nearshoring supply chains, up from 10% the year before. 58% were doing so to decrease the risk of disruption.

Nearshoring also creates new opportunities, such as “the ability to export to new markets, with greater control of the cost of shipping,” Bin Sulayem continues. DP World is developing digital solutions to amplify the benefits, using VR to visualize client supply chains end-to-end – even overlapping fragmented systems – enabling them to circumvent logistical bottlenecks to keep costs down, and trade flowing.

But it also presents a challenge, as U.S. and European markets face a blue-collar skills gap – mirroring the managerial skills gap in Global South economies.

S 25° 16' 37.1532'' N
S 25° 16' 37.1532'' N
S 25° 16' 37.1532'' N

Nearshoring also creates new opportunities, such as “the ability to export to new markets, with greater control of the cost of shipping,” Bin Sulayem continues. DP World is developing digital solutions to amplify the benefits, using VR to visualize client supply chains end-to-end – even overlapping fragmented systems – enabling them to circumvent logistical bottlenecks to keep costs down, and trade flowing.

But it also presents a challenge, as U.S. and European markets face a blue-collar skills gap – mirroring the managerial skills gap in Global South economies.

03
Bridging the
skills gap

Tthere is a growing body of evidence that VR could be the answer to both skills gaps. PwC found that VR learners completed leadership training four times faster than in a classroom, with a 40% improvement in confidence. DP World estimates that using VR to train its staff at Jebel Ali port could cut training times by as much as 50%.

Pradeep Desai, Chief Technology Officer, DP World, says the company has created “digital twins: three-dimensional simulations of our warehousing and terminal operations.” Employees will soon be able to learn in these immersive environments, “without travelling to and from our sites, which cuts emissions,” he continues.

The opportunities appear to be endless, with VR having the ability to train staff on the other side of the world. Experienced staff in Dubai could share the same view as trainees in Chile, talking them through the process, and even annotating their visual display.

Instructional overlays can also make new employees as efficient as experienced workers. In one study, rookie warehouse workers who were given step-by-step instructions on Augmented Reality (AR) overlays picked products 37% faster than those using paper lists, with an additional reduction in error rates.

But training is just the tip of the iceberg. VR is set to become the interface between logistics’ intensely physical operations, and the digital innovations that increasingly govern them.

04
Entering the
metaverse

With its real-time tracking system and logistics booking, DP World is already at the forefront of digitalizing logistics.

But now it’s betting big on the metaverse. While initial applications include marketing and training, eventually Desai sees the technology at the heart of its digitized operations. “I’m excited about the possibilities of all operations in a terminal being automated or performed remotely, with digital systems planning where to store what cargo, which appointments to give when picking up goods, and which ships to berth,” he says.

While much of this is expected to be automated – the company is already trialing autonomous vehicles at Jebel Ali – Desai also expects many operations to be controlled remotely by VR, including remote inspections and repair. "The possibilities are boundless,” he says.

Such virtual operation can erase geographical and accessibility barriers to talent – “people could perform tasks from their office, regardless of physical ability,” says Desai – helping to further inclusive recruitment. But it also serves as the mechanism for integrating data-driven efficiencies into physical operations, guiding workers step-by-step through continually optimized procedures – reducing the impact on our environment, and associated costs.

05
Virtual logistics

Desai says VR and the metaverse have the potential to transform the logistics sector – closing widening skills gaps, delivering untold efficiencies, and resolving the historic challenges facing the sector.

By overcoming these challenges, they open enormous opportunities to enter new markets, while shoring up the resilience of existing supply chains.

The future of this most physical of industries could well be virtual.

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