5G represents the latest standard in mobile networks and wireless technology. According to the GSMA, the global industry body, 5G now covers half of the world’s markets and nearly a third of the global population, gradually superseding 4G. According to PriceWaterCoopers (PwC), it is estimated that 5G’s global economic value will be expected to reach around USD 13.2 trillion by 2032.
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The beginning of 5G technology marks a significant jump in connectivity, which is transforming logistics and supply chain sectors. The incorporation of 5G technology into supply chain operations brings significant advantages, such as boosting the speed, reliability, and efficiency of real-time data processing. This technological development makes logistics digital transformation not just possible, but highly effective. Moreover, private 5G networks are becoming essential for modern logistics, as they provide the low-latency communication and high-speed for efficient and effective management for the supply chains.
An overwhelming 96% of logistics and warehouse decision-makers are boosting up their modernization efforts in the upcoming years. This extreme activity highlights the sector’s commitment to leveraging the benefits of 5G technology to overcome operational barriers.
The private 5G network in supply chain industry is managed by a third-party facility provider, which is responsible for sustaining, implementing, and transforming the network infrastructure. Moreover, it offers a wide range of benefits including rapid deployment, scalability, reliability, and cost-efficiency. The benefits of 5G as a Service are major determinants for increasing their deployment in logistics sector.
Advancing Supply Chain Digitalization and Resilience
5G technology provides benefits at every stage of the supply chain, particularly in intelligent transportation systems and inventory management. Within a storage warehouse, it effectively solves the tasks of connecting numerous wireless tools across large spaces. Furthermore, 5G enables more accurate store management systems, leading to highly precise and accurate inventory management tracking. For instance, it can utilize smart shelves equipped with IoT sensors that provide real-time visibility to the warehouse managers. These sensors can automatically flag when a product is out of stock or running low, thereby ensuring continuous availability without the risks of overstocking.
5G is also a game changer for autonomous and electric vehicles. Cameras, sensors, and other interconnected devices, which communicate across a network. When this network is supported by 5G it allows autonomous driving systems to be more precise, reliable, and safe. Autonomous vehicles are currently restricted to managed environments, such as warehouses, but 5G could open the door to commercial vehicles on public roads.
The Role of 5G in Next-Level Supply Chain Visibility
There has been a rapid acceleration in the adoption of real-time data and real-time visibility in the global supply chain because of the importance of the product being shipped, particularly in the case of COVID-19 vaccines. 5G is not yet widely rolled out or adopted, so manufacturers are not experiencing the full benefit of 5G just yet. But as it becomes more prevalent, 5G is poised to play a pivotal role in taking supply chain visibility to the next level, serving as a critical tool to help organizations see and share their supply chain insights in real-time.
Benefits of 5G
5G capabilities will enable improved bandwidth for computer vision-enabled cameras to support quality control practices during manufacturing and transportation. With 5G connectivity to support, cameras can perform 3-dimensional visual assessments of products based on algorithms related to processing, and can determine any imperfections. This information can be used to improve proactivity and efficiency in supply chain processes. Additionally, the next generation of smart appliances like refrigerators, washing machines, and dryers will all have sensors built-in from the point of manufacturing to help locate the individual product within the warehouse and distribution centers. These sensors will be connected to a 5G network in a warehouse to increase the accuracy when detecting a product’s location to enable accurate inventory counts.
The advantage of leveraging Industry 4.0 enables manufacturing organizations to seamlessly monitor the health and condition of their manufacturing equipment to ensure they are being utilized according to plan. Any deviation to the plan can be identified immediately and, in most cases, before issues lead to failure of the machines. IoT sensors monitoring the equipment will alert to any deficiencies and can invoke a remediation process to check for spare parts within the inventory of the manufacturer. Where possible, the supplier can submit a work order for a new part to be ordered and fitted as well as schedule the downtime of the machinery without impacting the productivity schedules of the production line. The speed of a 5G will provide communication between supplier, manufacturer, and customer that enables the dissemination of information in real-time across a secure, trusted network.
Conclusion
With 5G capabilities, the global supply chain will not only be able to provide this enhanced visibility for better cost savings, customer experience and retention but also operate at maximum efficiency speeds.
