Role of 5G in the logistics industry

The applications of 5G in logistics activities are helping the shipping industry in improving its operational efficiency, global connectivity, and productivity. All systems in the supply chain are interconnected at a micro level and require an internet connection with fast speed and lower latency to allow seamless data and information sharing across systems and other connected devices. Learn more about how 5G benefits logistics to improve supply chain management. 

 

Role of technology in logistics  

Technology is taking over many significant industries, including those associated with the global supply chain. The shipping, container, logistics, and transportation industries have transformed and are reaping the advantages of technology. The logistics industry is an essential part and the backbone of the supply chain that controls shipping activities of containerisation, such as procuring goods or raw materials, order processing, management, material handling, warehousing, inventory management, and transportation. Traditionally, most of these logistics activities were organised and managed manually. With technology integration, logistics has seen increased operational efficiency, productivity, and more significant revenue generation. Technology helps the logistics industry in the following ways.  

1. It optimises inventory management and warehousing by improving supply chain management activities.  

2. GPS technology helps in route optimisation, reducing fuel consumption and ensuring on-time delivery. 

3. RFID technology helps track assets throughout the supply chain, enabling global visibility. 

4. Artificial intelligence helps perform various tasks, including AI-based predictive maintenance, which minimises supply chain disruption due to last-minute breakdown of vehicles and equipment. 

5. Cloud-based logistics allows supply chain collaboration by enabling stakeholders to access necessary data and tools from any location. 

6. IoT technology in shipping facilitates stakeholders by offering real-time data about the goods during transit and allows quick decision-making in case of any uncertain situation during transportation. 

 

What is 5G?  

Fifth-generation wireless technology, popularly known as 5G technology, is the latest standard development in telecommunications. 5G technology is a significant advancement in wireless communication technology and offers upscaled benefits compared to its predecessors, 4G and 3G. Since the introduction of 5G technology, various industries, including healthcare, manufacturing, and transportation, have witnessed higher data speed and faster connectivity. 5G was built and deployed in 2019 to achieve low latency, faster connectivity, and broader coverage for organisations. 5G is built to facilitate the applications and services that were previously inoperational due to limitations in data speed and latency. With the deployment of 5G, networks continue to expand and transform how we connect and communicate with the world through computers, mobiles, and other network-enabled systems.
 

Benefits of 5G technology 

1. Faster speed- 5G offers a faster data speed than 4G, enabling quicker data transfer over multiple connected systems and shorter response times for applications and services relying on real-time data. 

2. Lower latency- 5G networks have made operating applications that demand significantly instantaneous response times easier. 

3. Wider Coverage- Poor connectivity in many rural areas has been a concern for e-commerce industries that engage in local and international transportation of goods. 5G networks have made this easier as they are designed to provide better coverage by using higher frequency bands.  

4. Global connectivity- 5G offers better global connectivity by using higher frequency bands that use millimetre waves to achieve high speeds compared to 4G or 3G. This enables seamless access to high-speed data services while on the move. 

 

Application of 5G in logistics 

 

1. Real-time tracking- The fast speed and low latency offered by 5G enable real-time tracking of goods and assets transported using IoT sensors, GPS, and RFID technology. 5G in logistics allows live information sharing to track accurate location and relevant information. This way, logistics companies can monitor the movement of cargo and assets to offer immediate responses to any planned routes or schedule changes. 

2. Smart warehousing- Warehouses deploy technological tools such as autonomous robots and drones for inventory management and transfer of goods from one place to another. 5G enables high-speed and low latency for operating autonomous systems effectively. 

3. Last-mile delivery- It is one of the most expensive and challenging parts of the logistics process to deliver goods to remote areas with little knowledge about routes and navigation. With its global connectivity, comprehensive coverage, and fast speed, 5G plays a crucial role in optimising last-mile delivery by connecting rural areas with the world. 

4. Operating automated vehicles- Automated guided vehicles are used on container depots and terminals to carry goods to and fro quay. Automated trucks and autonomous ships in shipping are being used to improve shipping efficiency and security. For them to function seamlessly, global connectivity, wide-coverage, fast speed, and low latency are required, which are prime benefits of 5G. 

 

These are a few advantages of using 5G in logistics to improve supply chain management and offer better customer service. 

 

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