As new technologies are created, industries across the world have found ways to embrace them. XR, or Extended Reality, is one that has proven useful when training new employees. XR is the broad term for other reality technologies, such as Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality. These technologies have been widely adopted by the logistics industry, primarily for training.

How XR Is Used & Why It’s Implemented
A primary function of XR technology in the logistics industry is to help with training. Since 2011, XR technologies have been used within the supply chain and have steadily gained traction within manufacturing employee training programs. In today’s logistics industry, it’s imperative that training matches the same fast pace as the rest of the industry. Training that takes weeks to complete and interrupts crucial everyday functions only slows down the supply chain.
Several major factors for the implementation of XR technologies in logistics training include:
– Rising Training Costs
– Danger During Training
– Inefficiency in Warehouses During Training
Rising Training Costs
Before XR, many companies would have a dedicated team for planning and organizing training, or they’d hire outside trainers. When a new hire started, they would generally begin training with classroom lectures and reading through manuals. However, those processes would take time, and retention rates during classroom lectures were low, with retention rates for lectures at 5% and reading at 10%. Training took up a significant amount of a company’s costs with very few benefits.
Danger During Training
In several sectors of the logistics industry, on-the-job training, shadowing, and mentorship occur. However, for roles that occur in a warehouse or out on the road, there are dozens of dangers. Sharp objects, dangerous machinery, and factory errors are all dangers that a new, untrained worker may experience. If a trainee doesn’t have the necessary safety information or doesn’t understand how to operate a certain piece of machinery, it can be costly when an incident occurs.
Inefficiency in Warehouses During Training
When a new hire is being trained in a warehouse, day-to-day work may not be as efficient. Some processes, such as storage, need to be stopped while the new hire is in training. Other times, machinery will be forced to stop if the trainee makes a mistake. It’s important for a trainee to experience how a warehouse runs, but delays and accidents don’t help keep the warehouse running smoothly. All of these stoppages lead to a delay in the supply chain.

Benefits of XR for Training
XR helps companies train new hires in a wide variety of ways. Major benefits include:
– Cost Savings
– Risk-Free Environment
– Higher Knowledge Retention
– Builds Soft Skills
Cost Savings
A major benefit of the shift to XR training is that it cuts costs. Having one program set and ready to be used, rather than someone teaching a training class over and over again, helps companies reallocate costs for a project or investment. While the cost of the equipment may deter companies, the savings prove themselves the longer the equipment is in use. Costs are also cut because mistakes aren’t being made as often with machinery, and there are few to no supply chain delays.
Risk-Free Environment
XR technology helps to keep trainees safe when learning their day-to-day tasks. Rather than having them shadow a worker on the road or in a warehouse, VR allows a trainee to experience on-the-job problems or dangers without truly being in them. Rather than starting a trainee off immediately practicing how to maneuver a forklift, they can get used to how it operates through VR. For drivers in training, XR helps them assess and anticipate what to do when driving a semi-truck through dense fog or on slippery roads. For all roles, XR helps prepare trainees by going through safety procedures so they can understand why they’ve been implemented in the first place.
Higher Knowledge Retention
Most onboarding processes have new hires sitting in a conference room, watching video courses for hours on end. Training material that hasn’t changed in decades won’t help trainees understand their role. Through XR, trainees have the opportunity to practice on-the-job skills in a controlled environment. They’re able to practice situations over and over again, giving them confidence for when they’re working. The retention rate when companies use XR has reached over 75%, showing just how valuable the technology has become.
Builds Soft Skills
When trainees use XR technology, they’re able to build upon essential soft skills that help them in their work. When put into a simulated emergency, they can practice their crisis management skills and learn how to stay calm and respond quickly. They build situational risk awareness by experiencing the warehouse floor and any hazards that may appear. They also work on communication and decision-making through the simulations. Practicing soft skills matters just as much as practicing safety procedures; without soft skills, the risk of damage rises, and collaboration decreases.
The benefits of XR are far-reaching for the logistics industry. The industry relies on a lot of working parts, and XR keeps training easy for a variety of learners. Since the training is engaging and interactive, it keeps trainees focused on tasks and learning. It’s also an easier way for training metrics to be tracked and evaluated for effectiveness. While traditional training methods cannot be tracked easily, training with XR technologies is easy to track. With the data that’s collected, companies can determine what may need to change and what’s proving to be most effective.

Differences Between AR, VR, and Mixed Reality
Through XR, training has become much more immersive and interactive. However, each technology has its own specialties. AR, VR, and Mixed Reality all have differences between them that make them unique training simulations for a trainee. But which one is best for specific workplaces?
AR overlays digital information onto the physical environment. It offers real-time guidance as the trainee explores a facility. It’s best used in low-risk situations when the trainee needs to experience guided on-the-job training. AR experiences are generally conducted through tablets, phones, or smart glasses.
VR completely immerses a trainee into a simulated environment. They can interact with the environment, engage in various situations, and make mistakes with no risk. They can learn how to properly operate machinery and understand safety procedures. VR is conducted on dedicated headsets, which means they need a dedicated space for a trainee to experience the simulation fully.
Mixed Reality is a blend between the physical and virtual worlds. A trainee would be able to interact with a digital object within their physical environment. Examples of how a trainee may utilize it include being able to identify how to move a heavy shipment properly. They would also be able to identify any problems that have occurred to machinery. Mixed reality is primarily experienced through smart glasses or headsets.

The Future of XR in the Logistics Industry
For logistics companies, XR is the future of training. It allows trainees to practice what they’ve learned in a safe environment and experience a variety of situations. With high retention rates, the technology has proven to be much more useful than traditional training methods. Warehouse operations are more efficient, and truck drivers are prepared for danger they might encounter on the road.
The logistics industry has a lot to gain when it comes to utilizing the benefits of XR technology in their companies. XR training offers generous cost savings and can make all the difference in closing the skills gap and the high turnover rates typical in this workforce.
This type of training eliminates the need for physical materials while allowing employees to prepare effectively for a new product line by practicing assembly operations. Interactive and immersive technology like AR and VR can improve employee retention by strengthening competency, skill level, learner engagement, and productivity. While AR and VR each have their strengths, uses, and benefits, the one a company chooses should be based on their specific needs, budget, and availability of physical space and equipment.
Frequently Asked Questions:
Q: What challenges face the widespread adoption of AR and VR technologies?
A: Some of the challenges facing the implementation and widespread adoption of these technologies include hardware costs, health concerns, content development, and the need for a more reliable internet connection.
Q: Are there any health risks associated with AR and VR?
A: Adopting AR and VR can pose health risks and concerns. Some of these include motion sickness, which results when visual cues do not match movements; eye strain and fatigue; “cyber sickness”; neck and posture issues; emotional effects; privacy concerns; depersonalization and isolation; addiction; and physical hazards.
Q: What is XR?
A: XR stands for “Extended Reality.” It encompasses AR, VR, MR, and the entire spectrum of all other immersive technologies.
Q: What are some common uses for AR?
A: Some common uses include smartphone apps for navigation, gaming, and educational applications. Other industries utilizing AR include medical training and visualization for healthcare and even the retail industry for virtual try-ons and product visualization.