Six ways 5G could save global supply chains

2022.03.08

5G supports real-time data at the point of origin, which can be used to quickly identify supply chain issues in inventory and predict future disruptions.

 

For decades, we have taken the supply chain for granted. When you needed a part to be manufactured, you booked the order and shipped it. More recently, the lingering New Crown Pneumonia crisis has shaken many managers out of their comfort and complacency with global distribution systems, with many seeking new ways to ensure viability and resilience. There is a growing focus on an emerging set of standards and technologies - 5G networks - that could help lay a solid foundation for a global business network.

 

This is the gist of a special report prepared for the World Economic Forum by Aongus Hegarty, President of Dell Technologies International Markets. 5G revolution "means more than just faster internet; 5G is deeper connectivity, laying the foundation for a fourth industrial revolution that will create higher levels of efficiency across all industries. This will create greater efficiency across all industries."

 

Hegarty noted that the recent coronavirus crisis - and the ongoing impact of supply chain disruptions, labour shortages and cyber security issues - has demonstrated the need for a more resilient business infrastructure. This resilience can be found in an open 5G network - wireless, software-based and automated, rather than built on legacy systems - which creates "better economic opportunities and job security, provides students with academic support, and revitalise local businesses." It can also open the door to new innovative technologies such as self-driving cars, energy-efficient cities and smart agricultural systems."

 

The coronavirus crisis has exposed "many supply chain inefficiencies and vulnerabilities, so businesses need to address them and prepare for future disruptions," Hegarty explained. "Businesses should invest time and resources in reassessing their supply chains to find and address weaknesses. Once vulnerabilities are identified, they can use technological advances such as automated systems and data-driven insights to modernise their supply chains and increase resilience." This is where 5G networks show their value.

 

Here are six ways in which 5G is actively adapting the supply chain, as documented by Hegarty and other industry experts.

 

Real-time data: 5G supports real-time data at the point of origin, which "can be used to quickly identify supply chain problems in inventory, predict future disruptions, and model solutions," Hegarty says. Gary Wollenhaupt writes in Supply Chain Dive that the adoption of 5G to transmit data within and between supply chain partners' systems means reducing "the latency between when a sensor detects an event and when the system recognises it". "For the supply chain, reducing latency will enable vehicle-to-vehicle communication for automated trucks and warehouse robots. Processing power will be able to work closer together, making sensors and mobile devices more capable."

 

Smart inventory management: "5G's high-speed network ensures that the collection, delivery and archiving of goods and products is more transparent and efficient for businesses," writes Amit Gautam in Forbes. "5G can address three key areas in inventory and warehouse management: optimising key processes, enabling remote maintenance and control, and deploying automated delivery vehicles." For example, supermarket chains could use 5G networks to "optimise the handling, packaging and delivery of merchandise with network solutions that reduce downtime and optimise the entire order processing system using robots" - which requires higher bandwidth, speed and latency capabilities than those offered by Wi-Fi , speed and latency capabilities.

 

Greater supply chain visibility: "Just-in-time manufacturing can track the movement of parts to the assembly line in real time compared to relying solely on planned arrivals," says Wollenhaupt. "Some large shippers are already using 5G-enabled sensors to improve product tracking in their warehouses. Industries shipping large numbers of small packages or combining products into kits will be able to track individual products and components. 5G will make monitoring of temperature, humidity and other environmental factors easier and more effective for sensitive products."

 

Tracking and tracing: "Today, most companies still use manual controls to track and trace products," says Gautam. "With 5G, logistics companies can automatically mark, track and record all shipments, thus solving a multitude of problems such as lost shipments, misplaced containers, counterfeiting and smuggling, as well as often inefficient manual processes."

 

Product monitoring: "5G allows you to monitor at SKU level so you can have a more detailed picture of what status your products are in, where they are and when they will reach your customers," says Wollenhaupt.

 

Fleet management: Gautam says 5G supports "real-time response regarding vehicle safety status and collision avoidance". "Self-driving cars use advanced sensors and collision avoidance capabilities to stay in their designated lanes, avoid collisions, deploy real-time delivery status updates, and seek emergency services. But all of this is only possible with the reliability and security of a low-latency network. This network infrastructure not only becomes easy to design for deployment alongside 5G, but also increases the potential automation capabilities of these vehicles."

 

Translated with www.DeepL.com/Translator (free version)