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5G Revolution: An Enhanced Visibility of the Supply Chain
With the global implementation of the 5G network approaching, some changes will be seen by cell phone users and various industries. The supply chain/logistics industry is expected to see sweeping enhancements in visibility and data analytics due to 5G implementation. These changes will potentially be able to assist in eliminating some of the common problems seen in both domestic and international logistics. Companies may initially encounter significant costs and steps associated with the implementation, such as the cost for a company to upgrade their in-house networks to 5G and augment their data infrastructure to prepare for increased data flow/volume. The potential for financial savings and operational optimization from it should payout in dividends over time.
Perhaps the most consequential effect of 5G implementation in the supply chain is the enhancement of visibility across the board. After Moor Insights & Strategy surveyed various logistics and shipping providers, the results showed that ~ 90% of those surveyed said a lack of visibility is one of the biggest challenges they face in the supply chain today. Once 5G is implemented and operating, companies will have wholly upgraded visibility over their inventory and freight movement – both domestically and internationally. This upgrade will be multi-faceted in several key areas.
One area that will see change is the tracking of freight as it moves from its origin to its destination. With 5G, small IoT (Internet of Things) trackers will allow freight tracking to be much more streamlined, efficient, and cost-effective. These trackers can be placed in containers or trailers to macro-track the freight's entirety throughout its transit. On top of this, there will also be the potential to add small trackers to each item of freight. This tracker will allow for micro-tracking on an SKU-level. The tracking on an SKU-level will be especially beneficial for preventing and resolving freight theft or lost freight during transit. With the IoT trackers and the 5G network, there will be a much broader coverage range, with dead zones becoming few and far between. The low-end frequency of 5G will allow for extended coverage into suburban or rural areas that usually are associated with a loss of coverage and, therefore, visibility into one's freight. On the other side of the scale, the high-end frequency of 5G will cover densely-populated urban areas that usually strain 4G and cause dead zones as well. Compared to the current 4G network, 5G can cover 1000 more devices for every meter of coverage. On top of this, the data rates are ~100x faster than 4G. The combination of broader coverage, enhanced usability of tracking devices, and faster data speeds will allow companies to have a much more consistent, in-depth visibility on their freight's status without delays due to dead zones or slow speeds. This benefit can be particularly useful to companies that utilize lean, just-in-time inventory where knowing the exact whereabouts of freight at all times is critical for their inventory and manufacturing planning.
While enhanced global tracking is a significant benefit of 5G IoT trackers, they will also allow for comprehensive tracking of the freight's environment and conditions. On top of tracking location, they will track things such as the temperature, humidity, light, and shock experienced by the freight. For some freight types, there are specific ranges for these factors that must be kept stable to prevent quality degradation. By having the trackers consistently live-report these types of metrics, companies can be aware of and potentially fix conditioning discrepancies before they cause problems to the freight. Warehousing these metrics can also allow for a more comprehensive data analysis than currently offered by 4G. This sort of data analysis can play a significant role in decision-making for future shipments and inventory.
Besides enhancing tracking and visibility in supply chains, 5G will also help support other trending technologies being implemented in the industry. With 5G, VR (Virtual Reality) can be utilized with significantly less chance of being impacted by network strain. Virtual reality will be able to support logistics through long-distance walkthroughs for truckers experiencing problems with their trucks. VR will allow for remote mechanics to walk the trucker through the steps needed to potentially fix the issues with their truck. Doing this can help prevent delays in companies receiving freight that is crucial to their business. Another technology that 5G will help support is autonomous trucking. Autonomous trucks have been among the pinnacle of discussion in the logistics industry over the past few years. They rely on consistent streams of data input to help plan every movement they make. With 5G speeds, the trucks will receive data at speeds of up to 10 gigabits per second. The ability to receive the data quickly can help the truck make split-second decisions that prevent collisions. This increases the safety, efficiency, and on-time arrival metrics of autonomous trucking.
5G implementation is still a work in progress. There will be significant costs and potential bumps in the road toward full implementation for much of the supply chain industry. However, its effects on the supply chain industry will begin manifesting more and more in the next few years. Many network analysts estimate that it will become streamlined and widespread in the industry between 2025 and 2030. During this time, it will become evident that 5G is not only something that affects cell phone users but something that can completely revolutionize supply chain visibility and data warehousing.
Contributor: Jonathan Eisner
References:
"5G And What It Means for Logistics: Discover DHL." E, 2020, discover.dhl.com/business/productivity/5g-and-logistics.
Remella, Dheeraj. "Three Ways 5G Will Benefit the Logistics Industry." Three Ways 5G Will Benefit the Logistics Industry - Inbound Logistics, 2019, www.inboundlogistics.com/cms/article/three-ways-5g-will-benefit-the-logistics-industry/.
Wollenhaupt, Gary. "4 Ways 5G Is Set to Transform Supply Chains." Supply Chain Dive, 22 Oct. 2019, www.supplychaindive.com/news/5g-transform-logistics-supply-chain/565491/.
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