5G wireless technology has the ability to accelerate data speeds, expand mobile networks and enhance IoT. In this article, Jason Adlam discusses the impact this technology can have on the supply chain, and how it can be used to address current challenges and improve existing solutions.
The introduction of 5G technology carries with it the potential to transform supply chain management, providing adopters with almost real-time information that can impact everything from how products are packaged to how they are shipped.
As a quick review, 5G is the fifth generation of the cellular network that now drives our world. It promises faster speeds and better connectivity; we’ll be able to connect more devices to a network and receive information faster than ever. For industries around the world, 5G’s potential to improve operations is immense; it’s no wonder a recent study by GartnerOpens a new window found that almost two-thirds of the companies surveyed plan to deploy 5G by the end of this year.
While the intent to use the technology is clear, 5G is not yet widely available and the economic impact of COVID-19 may further slow progress. Rather than simply waiting to see what happens next, consider this interim moment an opportunity – time to pause and reflect. How can you use 5G to address current challenges and improve existing solutions?
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Keep information flowing
With its game-changing technology, 5G enables the faster flow of information with much more granularity throughout the supply chain. We are getting a feel for how it works now, as the 5G network expands in North America and more companies incorporate it into the supply chain. If your company hasn’t been an early adopter, there’s no cause for concern; it’s early in the game, current 5G devices are still a little clunky in terms of transmitting information and the network isn’t available everywhere. Network options are expanding though, and we expect smaller, more convenient equipment to be available soon.
Theoretically, these smaller 5G devices will be able to do more than be placed on the truck or unit loads where they would transmit information faster and more frequently. They could also be placed inside the packages, and even directly on the product being delivered.
Think about what that could mean to your business. With vastly improved track-and-trace information, supply chain managers could regularly review previously unavailable insights into product velocity, the speed at which your products are flowing through the network or being sold. This improved, real-time information on the flow and sale of goods could reveal bottlenecks and inefficiencies within the supply chain.
Interestingly, the Gartner study revealed that “operational efficiency†was the key driver for organizations planning to deploy 5G technology. And, of course, once inefficiencies are identified, it’s far easier to work within your company and with partners to develop solutions, whether you’re looking to eliminate waste or eradicate empty transport miles.
Supply chains with current, obvious issues aren’t the only ones that can benefit from this new-and-improved 5G information flow. Even organizations that believe their supply chains are working well may discover opportunities to further optimize their networks and cut out inefficiencies.
As noted in a February 2020 articleOpens a new window in Modern Materials Handling, “The power of 5G should effectively shrink supply chains and make them easier to monitor and manage. With agile and adaptable supply chain processes, companies can start making measured and focused decisions that address specific issues.â€
In this new day, the old saying rings true: Knowledge is power. With 5G technology creating a superhighway of information exchange, supply chain leaders will have tremendous power at their fingertips. While drawing on knowledge of your unique supply chain, your team can make strategic decisions based on information that is more real-time and comprehensive.
Move from information to insight
Despite delays, the cellular network expansion is moving forward, bringing with it deployment of smaller, more powerful 5G devices. As you plan on how to incorporate these devices into your supply chain, keep the end goal in mind. What data points do you want? What information would help you address challenges or leverage current solutions? With 5G, the potential to gather the right information is transformative.
For example, with 5G on the job, you could explore such issues as temperature and transportation vibrations. What’s the temperature differential from a manufacturing facility to the customer loading dock? Is the pallet protecting your products appropriately? This is exactly the kind of real-time data that helps companies redesign the packaging used to ship goods from point A to point B, improving product quality, and reducing unsaleables.
Beyond profits, faster data flow can also provide insights on sustainability, an issue of ever-increasing importance in today’s global supply chain. Is your package design sufficient? Too much? Not enough? Overly designed? 5G insights can answer these questions and lead to carbon-cutting, product-protecting modifications that drive results.
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Make informed decisions
Ultimately, greater access to the 5G superhighway of information should help supply chain managers make better, well-informed decisions on how their goods move through the global network and how they’re sold in the marketplace.
The benefits of this technology extend beyond manufacturers and producers; 5G is expected to also lead to improved results for retailers. Looking even further out, consumers also stand to benefit through a smoother and more sustainable supply chain.
As we anticipate reliable, coast-to-coast 5G coverage now is the time for you to assess your supply chain. Where could more real-time information help you address inefficiencies that are driving excessive costs? Then, weigh the benefits of the information you can receive through the adoption of 5G technology against the anticipated costs. By evaluating the options today, you’ll be prepared to move forward, faster, tomorrow.
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