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The Future is 5G
As major telecom equipment manufacturers begin the next phase of 5G cellular network testing, companies need to be aware of the new technology’s effects on logistical and procurement work environments.
5G is a new telecommunication standard that takes advantage of newly allocated wireless frequencies - providing much higher speeds and larger user capacity. The main benefit for the logistics sector is that companies will be able to deploy more tracking devices for improved visibility into the supply chain. IoT devices, scanners, and small communication chips can now all use cellular connectivity more liberally without significant degradation of network speeds. In addition, 5G brings greater reliability of telecommunications and data connections for those employees constantly on the go, as well as new transportation options, including self-driving cars thanks to its increased bandwidth.
For the time being, 5G is undergoing strenuous tests by phone carriers, phone manufacturers, and governments to ensure that existing network infrastructure can support this new technology. Telecom companies need to ensure their existing routers and transmissions equipment will be able to emit new frequencies without interference, as well as obtain approval from the FCC for operation within the United States. Government scrutiny carries over to the procurement of 5G equipment, given recent fears of security flaws and built-in backdoors in Huawei products. This means that rolling out 5G will entail hours of research, cost analysis, and much communication amongst departments to ensure the needs of the business can be met.
In addition to this, there is a factor of those 5G devices that are not part of the infrastructure backbone, like cell phones, IoT devices, tablets with cellular connectivity, etc. Each of these devices introduces their own requirements, compatibility issues, and security risks that must be considered by each manufacturing company and each owner of the device. Again, this entails hours of research, cost analysis and communication to determine how to proceed with this upcoming change in technology.
Ultimately, it is up to logistics, procurement, and information technology teams to determine at what point the benefits of 5G would outweigh the costs of implementation and maintenance. It is recommended that companies consult with specialists within each sector to learn more about 5G development and how to properly maximize the benefits of the technology
Contributor: Erik Leal, Logistics Specialist
References:
Business Insider. (2017, December 15). How 5G will drive the adoption of self-driving cars. Retrieved from Business Insider: https://www.businessinsider.com/how-5g-will-drive-the-adoption-of-self-driving-cars-2017-12
Gallagher, S. (2019, March 28). UK cyber security officials report Huawei’s security practices are a mess. Retrieved from Arstechnica: https://arstechnica.com/information-technology/2019/03/uk-cyber-security-officials-report-huaweis-security-practices-are-a-mess/
Kan, M. (2019, March 5). DHS: China's Influence on Supply Chain, 5G a Key Concern. Retrieved from PC Mag: https://www.pcmag.com/news/366965/dhs-chinas-influence-on-supply-chain-5g-a-key-concern
Wired. (2017, 23 February). What Is 5G, and When Do I Get It? Retrieved from Wired: https://www.wired.com/2017/02/what-is-5g-and-when-do-i-get-it/
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