5G and Supply Chain Connectivity: Enhancing Logistics in the Digital Age

Unreliable suppliers, transportation delays, and communication breakdowns are just some of the headaches faced by logistics and transport professionals every day.

Fortunately, 5G technology can resolve these issues and streamline supply chain management. 5G connectivity gives companies end-to-end visibility into goods and materials. It can also transform warehouse management and improve communication with vendors.

We’re going to explore the best ways to implement 5G throughout the supply chain and discuss how to overcome implementation hiccups along the way.

Understanding 5G technology

5G is the 5th generation mobile network. It offers users unparalleled speed and capacity, enabling reliable, high-speed data sharing. 5G’s low latency means that there’s virtually no gap between input and response, so messages are transmitted almost instantaneously. 5G speed, capacity, and low latency can power a network of IoT devices, support AI solutions, and drive reliable communications. It’s the perfect tool for a modern, connected supply chain.

Current applications: Actionable strategies for supply chain managers

Here are some of the best strategies for implementing 5G-era supply chain management.

Enhanced asset tracking

5G networks have the speed and capacity to support IoT sensors in warehouses and in transit. This means that teams will have the capability to track the movement of goods and materials in real time with unprecedented accuracy and efficiency.

With the integration of telematics systems, businesses can not only monitor the location of their assets but also gather valuable data on factors such as temperature, humidity, and environmental conditions during transportation. This level of granular insight enables proactive decision-making, ensuring that goods arrive at their destinations in optimal condition while minimizing delays and disruptions. Telematics, powered by 5G technology, provides unparalleled visibility and control over the entire logistics process.

Today’s warehouses are often so large that traditional organizational tools no longer work. As sensors become more affordable, it increasingly makes sense to use them throughout the supply chain. Thanks to 5G, asset tracking is now more accurate than ever.

IoT integration for smart warehousing

IoT integration isn’t limited to using sensors to track inventory.

“Smart” shelves can also track supply levels and even re-order spare parts when the stock is low. IoT devices can alert managers when there are signs of theft, or when products are mis-shelved. Some IoT devices can track temperature and humidity, ensuring that warehouse conditions are optimal for your products.

Ultimately, 5G will expand the availability of data from sensors and intelligent equipment in distribution centers and factories, all without increasing data traffic on a site’s WIFI network or raising security concerns for the end-user companies.

Augmented reality (AR) in logistics
     
Augmented reality tools, like smart glasses, can resolve some of the most persistent warehouse problems. Inaccurate inventory, missing or stolen parts, and time-consuming documentation can all be fixed through AR.

AR glasses let users quickly find and log spare parts or other materials in the warehouse. AR smart glasses can “read” barcodes and can support a voice confirmation system to streamline inventory processes.

Digital twin creation

A supply chain digital twin can yield valuable insights into the supply chain, helping managers plan and forecast effectively. 5G connectivity powers the sensors and data analytics that go into creating the computer models that can create a digital twin.

Inbound & outbound confirmation

5G enables sensors to be placed (and successfully monitored) at an unparalleled density. In the past, sensors might be placed on containers—but with 5G connectivity, it’s possible to place individual sensors on each product. This ensures tracking at every stage so that supply chain managers can receive inbound and outbound confirmation. 

Overcoming challenges in 5G adoption

5G has the power to transform just about any operation. But, like any other new technology, it has some built-in challenges at the adoption stage. Here’s how to overcome those challenges.

Managing costs and ROI

Switching to 5G will increase costs—there’s no getting around that. 5G costs vary depending on your provider, location, and the size of your operation, but for now, at least, the costs are higher than 4G.

However, the ROI is significant enough to make up for the initial investment. 5G drives a more efficient, reliable supply chain. It also enables accurate predictions about demand and need, so that organizations can plan ahead and save.

Security concerns

5G’s high speed and low latency makes it an attractive target for cybercriminals, and users need to be on their guard for potential data breaches or ransomware attacks.

However, a strong security system can overcome this challenge easily. Using firewalls and VPNs can help keep your network safe from attack. Furthermore, conducting a comprehensive operational technology risk assessment is essential to identify potential vulnerabilities and develop targeted security measures tailored to the specific needs of 5G-enabled transit systems.

5G coverage areas

5G is still new technology, so it doesn’t yet cover every area of the globe. The technology is firmly in place across most parts of North America, western Europe, and much of Latin America. To find out exactly where 5G is available, try using the Ookla 5G map. The 5G network is expanding rapidly, so it’s a good idea to keep checking regularly.

Device compatibility

5G is compatible with IoT devices and with most laptops, mobiles, and tablets. Operations using older devices may need to upgrade and invest in new tools. However, this upfront expense is quickly made up for by the greater ROI from using 5G.

5G: A new era for supply chain management

Today’s supply chains need to keep up with the demands of an increasingly connected world. 5G enables near-instant data transfer and real-time communication from virtually anywhere in the world. Technology is already transforming the way goods and materials are produced, shipped, and delivered. The 5G revolution has truly arrived.

About the author:

Graham Perry is a writer at Business Tech Innovations specializing in logistics supply chain optimization. With expertise in fleet management and transportation technology, his articles empower businesses to navigate the dynamic world of logistics with peace of mind.

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