In the era of digital transformation, Virtual Reality (VR) has emerged as a groundbreaking technology that is revolutionizing various industries, and supply chain management (SCM) is no exception. VR is driving innovation by providing immersive, interactive experiences that enhance operational efficiency, reduce costs, and offer superior training methods. Over the past five years, the adoption of VR devices has seen a significant uptick, shifting from niche devices primarily for gamers to devices with widespread applications for both consumers and enterprises.

The Role of VR in Supply Chain Management

Digital twins. One of the key applications of VR in SCM is the creation of digital twins, which is a virtual replica designed to accurately reflect a physical object or system. It allows organizations to recreate parts of their supply chain in a virtual world, enabling them to test scenarios, model different nodes, modes, flows, and policies, and understand how decisions and disruptions will impact network operations. This technology supports end-to-end visibility and traceability, enabling supply chain practitioners to spot patterns of highly complex and dynamic behavior. 

Product and process design. VR allows companies to visualize their designs in a 3D environment, enabling rapid iterations and evaluations. This interactive visualization capability enhances computer-aided design (CAD) functionality, and fosters engineering employee engagement.

Data and process visualization. VR provides an immersive platform for visualizing complex data and processes. This can help supply chain managers better understand and manage their operations.

Employee collaboration. VR’s audio and video capabilities allow employees to collaborate in a shared virtual environment. This can be particularly beneficial for companies with global operations.

Driving innovation. Trends show that the adoption of VR drives innovation, and enhances remote virtual collaboration.

VR for Training and Education

VR is also transforming the way employees are trained. It provides a safe environment for employees to practice and develop their skills without facing real-world risks. This realistic and immersive approach accelerates the learning process, and improves memory retention through experience-based leaning, a hands-on learning approach that can lead to more efficient operations and confident employees. Moreover, VR is making its way into education, providing students with immersive learning experiences, and helping them develop career skills. 

Companies Leveraging VR

Several companies are harnessing the power of VR to enhance their operations.

XPO Logistics became one of the more recent logistics businesses to use VR to train their workers. DHL uses VR for workflow guidance in the picking process. UPS uses VR to provide its students with realistic driving experiences before operating an actual package car.

Walmart uses VR for training its drivers, providing them with realistic driving experiences before they operate an actual package car. Amazon is using VR to simulate the loading and unloading of trucks in its warehouses.

Walmart also employs VR simulations to train employees in various logistics scenarios, resulting in safer and more efficient operations. 

Boeing Starliner uses VR for astronaut training, providing a realistic simulation of each phase of a commercial crew mission. 

Warby Parker uses VR to allow customers to try on virtual frames through augmented reality. Apple uses its Apple Vision Pro to showcase their products, while Microsoft’s HoloLens is being used in various industries from healthcare to manufacturing. Meta (formerly Facebook) is also promoting the use of VR goggles, helping to familiarize current consumers as well as the next generation with VR.

VR in Academia

Arizona State University (ASU) is also leveraging VR to enhance the learning experience for students in the field of supply chain management. ASU has piloted a program called W. P. Coffee, a Dreamscape Learn virtual reality immersive classroom experience. It is part of the business school’s mission to leverage VR technologies to enhance student learning. The goal is to turn theory into experience, and make learning more dynamic and immersive. 

This program is set in a virtual coffee shop, and teaches students about operational capacity and waiting-line management. It allows students to make decisions such as purchasing coffee equipment, investing in additional staff to improve efficiency, and changing the shop’s appearance. The simulation provides live updates on how these decisions impact the shop’s KPIs such as number of customers waiting in line, its finances and net profit generation.

Adoption Hurdles and Disadvantages

VR technology is still rapidly evolving, and has not reached operational maturity or seen full-scale implementation at the enterprise level. This is because, despite its advantages, the adoption of VR technology faces several hurdles. These include the high cost of VR equipment, the need for specialized training to use these tools, IT requirements, and technical challenges when integrating VR with existing systems, resistance to adopting VR due to unfamiliarity with the technology, and even the potential for users to experience motion sickness or discomfort during prolonged VR sessions. 

Moreover, the effectiveness of VR training is still being researched, and there are also concerns about data privacy and security when collecting and analyzing data. However, despite these challenges, VR holds immense potential to transform SCM, driving innovation and efficiency. As the technology continues to evolve and its costs decline, VR adoption in SCM is expected to grow, further revolutionizing the industry, increasing efficiency, enhancing collaboration, improving training, and driving future innovation. 

Antonios Printezis is a Clinical Professor in the Department of Supply Chain Management in the W.P. Carey School of Business at Arizona State University.