Did you know that 5G technology has the potential to improve supply chain management and logistics? In this article Alyse Falk Ivory Research, explains how 5G affects supply chains and the key benefits of using this remarkable technology.
What Is 5G?
Every new generation of wireless networks is significantly faster and more capable than the previous ones. 5G is the fifth generation of wireless network technology that is expected to replace the 4G LTE connection. In real life, it means lower latency, as well as faster download and upload speeds. 5G is expected to support various applications, including AI, smart homes, buildings, and cars, work & play in the cloud, and 3D videos. By now, many digital companies, like Zyro, have already learned to adopt artificial intelligence to create digital and design products. Sounds futuristic, right?
Besides supporting the next-level technology, 5G also has the potential to impact supply chain management business outcomes positively. Here are the 6 key benefits of 5G technology, in the context of SCM:
6 Key Benefits of 5G Technology on Supply Chain Management
1. Logistics
Today, companies use significant manual control to track and trace products. Supply chains that use 5G technology see a significant improvement when it comes to transportation management.
5G allows us to automate many processes and improve track and trace visibility. This technology has the potential to solve common logistics problems, like losing cargo or misplacing containers.
Here is how you can improve your logistics with 5G:
- Develop more accurate forecasts on when items will be shipped
- Predict and avoid potential delays ahead of time
- Improve customer experience by providing live location updates of the orders
- Optimize transportation roots by utilizing artificial intelligence
- Enable vehicle-to-vehicle communication for automated cargo ships and trucks
Learn More: Keeping SCM Agile with Automotive Logistics, 3PL & Connected LogisticsOpens a new window
2. Detailed product monitoring
Detailed product monitoring is another key benefit of 5G. You can install 5G-connected sensors or chips to track and trace your items. After installing 5G tracking devices, you’ll get access to each item’s location and critical information, like temperature and humidity. This is particularly useful if you’re a brand owner of luxury products or hardware company. Installing 5G sensors can help you protect units from counterfeiting and other damage.
3. Inventory management
5G can also change the way we operate inventory management. The same trackers and sensors used for transportation can be utilized for inventory management purposes.
5G technology allows you to expand your knowledge of inbound goods and inventory, and by enabling advanced inventory monitoring, it helps make better use of resources.
4. Warehouse management
5G is expected to bring revolutionary changes to the way we manage warehouses. AR (augmented reality) is one of the most impressive applications of 5G technology. To put it simply, AR allows users to see their environment with an extra layer of computer-generated visuals. But how can you use it in warehouses? For example, you can create the imagery of shelving directions and instructions for faster and easier storage. Also, you can use AR for inter-equipment communication to automate routing around the warehouse.
Learn More: How Online Marketplaces are Shaping The Future of ProcurementOpens a new window
5. Automatization and IoT
Many companies have already employed the Internet of Things technology (IoT) for automation purposes. 5G offers a digital infrastructure to support the public endorsement of IoT technology. What this means is that you’ll be able to use devices that consume less power, are more cost-efficient, and are fully automated. IoT devices can be used for automatic data sharing among all supply chain parties.
Also, 5G technology can improve and automate robotic performance. 5G enables instant communication between machines, and this can be leveraged to automate warehouse robots, trucks, and cargo ships.
6. Real-time data sharing
5G is especially useful for supply chains because of its capabilities to manage enormous amounts of data with speed and at scale. Because of its low latency, 5G allows us to get information as fast as a sensor detects it. You can later use this information for performance evaluation and to build predictive analysis algorithms.
The bottom line
While all of the major carriers work on building their 5G networks even as you read this article, it’s important to remember that 5G is still in its infancy. 5G is expected to bring a wave of new applications and technologies to optimize supply chain management in the near future. However, 5G is not just a technology enabler – it can also be leveraged across the supply chain, from design to distribution and sales. Keep in mind that before implementing any 5G-enabled technology, you may need to strengthen your security and data infrastructure, as well as run through more detailed readiness checklists to ensure it is compatible with your existing systems and platforms.
Let us know if you liked this article on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . We would love to hear from you!