Six ways 5G can save the global supply chain

5G enables 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’ve taken supply chains for granted. When you needed a part manufactured, you booked the order and it was shipped. More recently, the lingering COVID-19 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’s growing attention on an emerging set of standards and technologies — 5G networks — that could help provide a solid foundation for global business networks.

That's the takeaway from a special report prepared for the World Economic Forum by Aongus Hegarty, president of international markets at Dell Technologies. The 5G revolution "is about more than just faster internet; 5G is about deeper connectivity, laying the foundation for the Fourth Industrial Revolution, creating greater efficiencies across all industries."

Hegarty noted that the recent coronavirus crisis — and the ongoing impact of supply chain disruptions, labor shortages, and cybersecurity issues — demonstrates the need for a more resilient business infrastructure. That resiliency can be found in open 5G networks — wireless, software-based, and automated, rather than built on legacy systems — which create “better economic opportunity and job security, provide academic support for students, and reinvigorate 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 these to prepare for future disruptions,” Hegarty explained. “Businesses should invest time and resources to reassess their supply chains to identify and address weaknesses. Once vulnerabilities are identified, they can then use technological advances such as automated systems and data-driven insights to modernize their supply chains and build resilience.” This is where 5G networks show their value.

Here are six ways Hegarty and other industry experts documented that 5G is positively altering supply chains:

Real-time data : 5G enables real-time data at the point of origin, which “can be used to quickly spot supply chain problems in inventory, predict future disruptions, and model solutions,” Hegarty said. Adopting 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 recognizes it,” Gary Wollenhaupt wrote in Supply Chain Dive. “For the supply chain, reduced latency could enable vehicle-to-vehicle communications for automated trucks and warehouse robots. Processing power will be able to move closer to the work, making sensors and mobile devices more capable.”

Smart inventory management : “5G’s high-speed networks ensure that the collection, delivery, and filing of goods and products becomes more transparent and efficient for businesses,” writes Amit Gautam in Forbes. “5G can address three key areas in inventory and warehouse management: optimizing key processes, enabling remote maintenance and control, and deploying autonomous transport vehicles.” For example, supermarket chains could use 5G networks to “optimize the handling, packaging, and delivery of goods using network solutions, reduce downtime, and use robots to optimize the entire order processing system”—which requires higher bandwidth, speed, and latency capabilities than Wi-Fi can provide.

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

Track and trace : “Today, most companies still use manual controls to track and trace products,” Gautam said. “With 5G, logistics companies can automatically tag, track and record all shipments, solving a host of problems such as lost goods, misplaced containers, counterfeiting and smuggling, and generally inefficient manual processes.”

Product monitoring : “5G allows you to monitor at the SKU level, so you can understand in much greater detail what state your product is in, where it is, and when it will get to the customer,” Wollenhaupt said.

Fleet management : 5G enables "real-time responses regarding vehicle safety status and collision avoidance," Gautam said. "Autonomous vehicles use advanced sensors and collision avoidance capabilities to keep them within designated lanes, avoid collisions, deploy real-time delivery status updates, and call for emergency services. But all of this is only possible with the reliability and safety of a low-latency network. This network infrastructure not only becomes easy to design and deploy with 5G, but also increases the potential automation capabilities of these vehicles."