How AR and 3D Modeling Are Reshaping Supply Chain Dynamics

In an age when technology is continuously redefining the landscape of commerce, augmented reality (AR) and 3D modeling have emerged as pivotal tools, transforming not only the customer experience but also the intricate workings of supply chains. These technologies, once confined to the realm of sci-fi movies, are now actively streamlining supply chains and significantly enhancing operational efficiency for retailers.

Enhancing Product Representation, Reducing Returns

One of the most profound impacts of AR and 3D modeling is their ability to offer accurate and interactive product representations. This capability goes beyond traditional product photography, allowing consumers to visualize items in a more realistic and engaging manner. For instance, virtual try-ons for clothing and accessories or AR visualizations of furniture in a customer’s living space provide a more immersive shopping experience.

This accurate product representation reduces the likelihood of customer dissatisfaction and returns. When customers have a clear understanding of what they're purchasing, they're less likely to return items due to unmet expectations. Why is this valuable? This reduction in returns not only enhances customer satisfaction but also alleviates the logistical burden on supply chains. Businesses are at risk for significant strain from handling returns, especially e-commerce retailers.

According to data from Shopify, the average e-commerce return rate was 17.6 percent in 2023. AR and 3D modeling can help bring this average down by showing shoppers what to expect when ordering items online.

3D Modeling: Say Goodbye to Physical Samples and Hello to New, Sustainable E-Commerce Possibilities

Sustainability is a growing concern for both consumers and businesses. AR and 3D modeling support sustainable practices in multiple ways. First, by providing detailed product views and virtual try-ons, these technologies encourage consumers to make more informed purchasing decisions, reducing the likelihood of impulse buys and subsequent returns.

Additionally, transforming a physical catalog into 3D models helps cut down on the need for samples, significantly reducing waste. Fashion companies in particular often have hundreds of items, each with several variations. Traditionally, they produce physical samples for each variation, which is resource-intensive and leads to significant waste from unsold samples and excess inventory.

By converting their inventory into 3D models, fashion brands can display all product variations digitally, eliminating the need for physical samples. This reduces material waste and production costs while allowing consumers to view and interact with realistic digital representations of the products.

Using this 3D technology to give customers a realistic sense of their products, retailers can foster a more eco-friendly business model and enhance overall supply chain efficiency by minimizing waste from customer returns and eliminating the need for physical samples.

Looking Ahead: Improving Time to Market and Operational Efficiency

By improving product representation and sustainability, AR and 3D modeling enhance overall operational efficiency. For example, these technologies can streamline the product design and development process. Designers can create and modify 3D models, rapidly prototyping new products without the need for physical samples. This accelerates the time-to-market for new products and reduces the resources consumed during the development phase.

Additionally, the ability to see and try on products in real time using 3D and AR ensures that customers receive exactly what they envision, further boosting their confidence and loyalty towards the brand. By bridging the gap between physical and digital shopping experiences, AR and 3D modeling not only streamline operations but also create a more engaging and satisfying customer journey.

As we move forward, the continued adoption of AR and 3D modeling will undoubtedly reshape supply chain dynamics, offering retailers a competitive edge in an increasingly complex and demanding market. By leveraging these technologies, retailers can build more resilient, efficient and sustainable supply chains, ultimately delivering greater value to both customers and the environment.

Angelo Coletta is the CEO of Zakeke, a platform revolutionizing e-commerce through visual technologies.