5G technology got hotly debated among different industries and businesses all around
the world almost immediately after its invention. And there are good reasons for that.
Analysts suggest that 5G networks are likely to cover one-third of the world’s population
by 2025. Over the next 10-15 years, the growth trajectory of sales enabled by 5G will
reach $13.1 trillion, despite the economic downturn caused by the pandemic.
Impressive, isn’t it?
5G causes great interest among logistics and transport service providers, as it helps to
solve their two major problems:
improve supply chain transparency;
make the necessary changes in the industry (create a new structure for existing
logistics technologies, from the Internet of Things (IoT) to real-time supply chain
tracking tools.
For example, to provide better logistics services, 5G can be used for sensors installed
on vehicles to monitor different parameters, such as temperature and humidity, or the
location of goods during international transportation.
In this article, we will see how 5G technology impacts digital logistics and what
prospects this solution has.
5G technology benefits in logistics
An effective tracking and data collection system is the driving force for any supply chain,
as it improves decision-making, and increases productivity and customer satisfaction. IoT
devices help logistics companies to stay up to date with any change in the operating
environment.
According to the research conducted by DHL and Staffbe , an IT outstaffing company,
IoT is revolutionary for logistics and opens up a $1.9 trillion opportunity in it. And this
number will keep growing with the expansion of 5G networks. On average, 5G
technology can support 1,000 more devices per meter than what’s supported by 4G,
with speed up to 10 Gb/s.
Actually, 5G technology can greatly contribute to the full digital transformation in
logistics in the near future.
Supply chain transparency and real-time tracking
Many logistics companies suffer losses due to the poor real-time tracking of vehicles or
parcels. Lack of visibility in supply chain and transit dead zones has a damaging effect
on a company’s overall growth and success.
The implementation of 5G networks will help to achieve a transparent supply chain.
An increased amount of data generated will make supply chain management fast and cost-efficient.
Before shipping, all the goods are subject to mandatory checks at the storage facilities.
But very little information is received about the cargo during its transportation (in real-time), which is a deep problem. The implementation of 5G technology in logistics will
help to provide real-time data, which will simplify the tracking of cargo during all points
of its journey from the manufacturer to the end-use customer.
The updated information will help companies to optimize logistics operations and
processes:
change a transport route;
calculate the estimated time of arrival for the cargo or the vehicle to reach its
destination;
update cargo tracking in real-time;
analyze and identify locations where delays may occur.
Use of remotely operated and autonomous trucks
One of the key characteristics of the fifth-generation technology is its low latency. Data
can be transmitted with a 1-millisecond delay, which is 50 times faster than 4G data
transmission.
This function is essential when using remotely operated and autonomous trucks, drones
and delivery robots on the road where every second counts. Clearly, the faster the
system makes correct and rational decisions, the safer autonomous operations will be.
Each commercial vehicle is equipped with special sensors to monitor its operation and
help to improve truck fleet management to avoid breakdowns. Since 5G can operate
beyond urban areas, a commercial fleet will become a part of the permanently
accessible transportation system.
Modern transport management systems provide real-time tracking of vehicles, which
significantly improves the entire supply chain.
New structure of digital logistics
Logistics and transport service providers have already started to implement new
technologies in their businesses, but 5G is the key element to a completely new
structure of digital logistics.
Due to increasing data transfer rates and minimal latency such technologies as IoT,
telematics, AR, and VR can reach their full potential and bring digital logistics to a
completely different level.
To improve productivity and keep up with the progress, logistics companies need digital
transformations. For example, if there are visibility gaps or dead zones in supply chains,
IoT devices should be implemented to improve parcel tracking. If your trucks stand idle
for a long time due to their maintenance and repairs, you should use AR and VR
technologies to reduce this time. If you manage a warehouse, think about how robots can be
used in the workplace to improve performance.
AR/VR technologies and maintenance operation
Equipment and vehicle maintenance and repair is one of the largest expenses in the
sphere of logistics. Breakdowns and failures affect the entire delivery process, causing
its slowdown or even a temporary stop.
AR and VR technologies combined with 5G will be a real breakthrough for equipment
and vehicle maintenance and repair operations.
Moreover, due to the minimal delay, 5G technology can be used in warehouses to get
real-time tracking information to track the progress of each shipment. The real-time
the locating system will increase the reliability of the AR applications used on-site.
Robots and other automated equipment can use AR technologies to optimize routing.
Unlike short-range 4G wireless networks, augmented reality is able to provide a whole
digital space for a large warehouse. It can also be integrated into vehicles to increase
travel safety and determine destinations correctly.
VR applications can also be used outside of warehouses. They allow fleet mechanics to
provide their services remotely, thus reducing downtime and increasing overall
performance.
AR/VR devices can be used in the design and construction of Smart Sea Ports. AR/VR
smart glasses and tablets, as well as mobile broadband Internet access services, will
allow engineers to cooperate on site.
In conclusion
5G has the potential to make a breakthrough in logistics. This technology will ensure
a rapid technological change in the sphere and increase the productivity of logistics and
transport service providers.
One of the key advantages of 5G is an almost complete absence of transmission delays
which means the minimal time is required to send a data request from a device connected to
the network and receive a response.
In the coming years, 5G technology will be used in most industries. The companies that
will be the first to implement 5G in their businesses, will also make a huge contribution
to the development of digital logistics. Moreover, they will take a significant advantage
by mastering new tools.