Enterprise IoT Insights has released some key conclusions on the topic, following the recent release of a white paper, Dedicated 5G in the Warehouse, by analyst firm ABI Research and US-based network design and services company Betacom. These experiences are largely focused on the US market, where Citizens Broadband Radio Service (CBRS) has enabled many to deploy private wireless networks in buildings.

Talking about the need for dedicated 5G networks in warehouses, the white paper said that connectivity will be a key driver of Industry 4.0, as machines and production assets need to be connected in order to transmit data. Connectivity will also be one of the keys for warehouse operators to realize gains and efficiency gains by automating and digitizing workflows and processes.

"Dedicated 5G will be an important part of these enhancements, as it provides important capabilities that address key pain points for warehouse managers."

Read on for additional highlights about dedicated 5G in smart warehousing.

2. The industry must be willing to pivot quickly

Warehouses and manufacturers can benefit from the digital transformation of the industry. Private 5G networks can help create greater efficiency, better quality, higher productivity, and less energy and labor consumption. It’s a win for all parties, as less energy use is better for the planet and businesses have the potential to meet their environmental, social and governance (ESG) goals.

According to Enterprise IoT Insights, while every industry can benefit from the advantages that dedicated 5G offers, logistics and warehouses are under greater pressure to take advantage of the technology. Factors such as climate change, energy crises and economic downturns have amply demonstrated the fragility of traditional supply chain models and the importance of incorporating technology-driven solutions.

3. Connectivity

The white paper states that while many industries can benefit from network flexibility, warehousing and manufacturing are probably the two industries that most need network flexibility due to the number of applications used. New cellular and 5G technologies could help warehouses make their environments more orderly. Other solutions like Wi-Fi and Ethernet have their uses, but may not offer the reliability or flexibility that private 5G networks can. Private wireless networks are designed for rapid deployment, making it easier to manage small business premises.

ABI Research said: “Dedicated 5G guarantees a high level of integrity and data sovereignty, meaning that highly critical warehouse data, such as workstations, pallet locations or the condition of autonomous vehicles, can remain on the warehouse premises without having to leave the warehouse for external deal with."

4. Private 5G networks are good for business

As reported by Enterprise IoT Insights, ABI Research found that warehouse businesses that connect existing applications, security camera systems, robotic automation projects, and more to private 5G networks are seeing significant return on investment. The average investment in a typical U.S. warehouse with a "dedicated network of smart warehousing applications" over five years is $13.80, the company said. Additionally, gross margins for "normal warehouses" are likely to increase by nearly 12% over the same period, with operating cost savings of $284.17 million.

On the other hand, warehouses that choose not to deploy 5G networks could forgo $231 million in unrealized profits and 6 million fewer packages, according to the report.

5. Dedicated 5G is also good for the environment

According to the white paper, with the use of Internet of Things (IoT) tools that can monitor and report energy reductions in warehouses, the industry has an opportunity to deliver on its ESG commitments. According to ABI Research, each warehouse operator can reduce energy consumption by 2,000 megawatts per year.

"This will improve the sustainability of the industry as it will reduce CO2 emissions per warehouse by almost 700 tonnes per year," the research firm said.

6. Deploying private 5G networks requires teamwork

Warehouse operators do not need to go through the 5G deployment process alone. There are plenty of trusted technology vendors to turn to so that you don't waste too much time figuring out which solutions to use and how to implement them. Suppliers are more than willing to provide any necessary guidance throughout the process. ABI Research also ensures that many providers' services are flexible enough to help cushion the initial "bill shock" because they know how much the initial investment will cost.

"To simplify investment decisions, from a business economics perspective, warehouse operators should consider offering a service-based offering that allows each business to pay for dedicated 5G services in the long term, rather than as an upfront investment," ABI Research wrote.