Conclusion and summary

In this post we will give a summary of the research and an answer on the following research question: 

How can AR be applied in the order picking process in the warehouse of Coolblue?

Proces

The benefits in the process phase of the PCOI model is that the task to determine to route will be eliminated because the AR glasses will do that for the employee. Besides that, the hands of the order picker will be free to pick the orders. 
The safety measurement that needs to be taken into account are to only pick for two hours and take a break by doing another task to prevent eye accidents. 

Control

Implementation of the smart glasses in the order process will be an investment of €594,083.25 in the first 5 years. This will increase the productivity of the process by 25% to 30%. We cannot express what this change will bring about in Euros. 

Organisation

Coolblue states that it is a flexible company that dares to change, so the implementation of the AR picking system wouldn't be difficult in terms of getting the empoyees used to the new system. 

The RACI diagram below can be used by the company to implement the new system. In this way, it is immediately clear who is responsible for what. 

Information

The KPI's Coolblue should look at are:

-Delivery time to customer 

-Leadtime

-Picking errors

The delivery time to customer and leadtime will decrease because the warehouse employees do not have to search as long for the right items and the process becomes more efficient in this way.

The pick errors will also reduce because the system will be less prone to errors and this is caused by the picking being done by location and product photos and not by product name. If a wrong item is picked up, the glasses will give an error message.

The AR glasses come with a certain software. On this software Coolblue can add all order places, making it possible for the AR glasses to indicate the correct route to employees. This software could be linked to the system that Coolblue is already using at the moment.

The communication from the AR glasses to the employee will be in the following way: A route  will be projected on the glasses so the employee can see the route and product names of the products he or she has to pick. 

The communication from the AR glasses to the system holder: The system shows which products have been picked by whom and when. In this way, a good overview can be kept of what has been picked and what still needs to be done.

Conclusion

AR can be applied in the order picking process of Coolblue by using the smart glasses. To implement this system, the company should look at the RACI diagram for the responsibilities of each stakeholder. As written above, the AR system will come with more than one advantage, such as that the lead time will decrease, the delivery time will decrease, the picking errors will decrease, the productivity will increase and the employees do not have to hold papers with them while picking the orders.

Before implementing the system, there must be given an answer to the following questions:

• In how many months or years can the investment be earned back?
• The productivity will increase by around 25 - 30%, but what will the profit be after the implementation?
• How can the system of the glasses be connected to the system they already have?
• Which further functions of the glasses can the company use for future developments?