Six ways 5G can save the global supply chain

For decades, we’ve taken supply chains for granted. When you need a part manufactured, you place an order, and it’s shipped. More recently, the lingering COVID-19 crisis has shaken many executives 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 more stable 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, and it lays the foundation for the Fourth Industrial Revolution to create greater efficiencies across all industries.”

Hegarty said the recent Covid crisis — with the ongoing impact of supply chain disruptions, labor shortages and cybersecurity issues — has demonstrated 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 Covid crisis has exposed “inefficiencies and vulnerabilities in many supply chains, so organisations need to address these to prepare for future disruptions”, Hegarty explained. “Businesses should invest time and resources in reassessing 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 modernise their supply chains and improve resilience.” This is where 5G networks demonstrate their value.

Here are six ways 5G will positively alter the supply chain, as Hegarty and other industry experts say:

Real-time data: 5G enables local, real-time data, which “can be used to quickly spot supply chain issues across inventory, predict future disruptions and model solutions,” Hegarty said. Using 5G to transmit data within and across 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 autonomous 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 network ensures that the collection, delivery and archiving of goods and products becomes more transparent and efficient for businesses,” says Amit Gautam, writing in Forbes. “5G can address three key areas of inventory and warehouse management: optimizing key processes, enabling remote maintenance and control, and deploying autonomous vehicles for transportation.” For example, a supermarket chain could use a 5G network to “leverage network solutions to optimize the handling, packaging and delivery of goods, reduce downtime and use robots to streamline the entire order processing system”—which requires higher bandwidth, speed and latency 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 scheduled 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 efficient 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,” he said. “With 5G, logistics companies can automatically tag, track and record all shipments, solving a range of problems such as lost cargo, misplaced containers, counterfeiting and smuggling, and often inefficient manual processes.”

Product monitoring: “5G allows you to monitor at the SKU level, so you can have a much more detailed understanding of what your product is like, where it is, and when it will get to your customer,” Wollenhaupt said.

Fleet management: 5G can enable “real-time responses regarding vehicle safety status and collision avoidance,” Gautam said. “Autonomous vehicles use advanced sensors and collision avoidance features to keep them within designated lanes, avoid collisions, deploy real-time delivery status updates and call emergency services. But all of this is only possible with the reliability and safety of a low-latency network. This network infrastructure is not only easily deployable with 5G, but it also improves the potential automation capabilities of these vehicles.”