Shaping resilient supply chains with 5G

Covid-19 exposed many of the weaknesses in global supply chains as countries grappled with shortages in food supplies and protective equipment, especially during the early phases of the pandemic. At the same time, consumers have been turning to online shopping in droves, and delivering purchases to buyers was another challenge.

To develop resilient supply chains capable of withstanding these pressures, businesses will need to design for new risks and ensure agility and flexibility while optimising for efficiency and speed¹.

Technologies such as 5G, combined with the Internet of Things (IoT), big data, artificial intelligence (AI) and automation, will help them to achieve this.

5G is able to connect many more devices and users than its predecessors and allow them to communicate faster with one another at speeds that are closer to real-time. The proliferation of connected sensors and time-sensitive IoT applications will pave the way for data-driven analytics and decision-making with big data and AI, revolutionising the process of getting goods from the factory to the customer. The impact of these technologies will be felt across different segments of the supply chain such as shipping, port operations, road freight, warehousing and last-mile delivery.   

From a macro perspective, supply chain visibility is one of the biggest challenges faced by logistics and shipping providers today, according to research by Moor Insights & Strategy.²

Given the scale and spread of global shipping operations, receiving updates at only a few key checkpoints can lead to unforeseen delays that impact delivery times, budgets and customer satisfaction.

5G, in combination with other enabling technologies like IoT, will help to address this pain point. According to DHL’s latest Logistics Trend Radar report, 5G will enable global tracking and condition monitoring for parcels and devices and help eliminate information “black holes”.

Businesses will be able to manage assets remotely by attaching a low-cost tracker or sensor to shipments, pallets or individual products to obtain precise data on location, temperature and other parameters via a 5G network.

The large flow of data coming from connected sensors across the supply chain can be analysed in real time to spot trends, predict risks, ensure proper cargo handling, and forecast traffic congestion. Any gaps in the supply chain can be quickly identified and mitigated before they cause a problem. For example, if certain parts are delayed in shipment, the factory can receive timely alerts and adapt its schedules and priorities accordingly.

To expedite the loading and unloading of cargo and boost overall operational efficiency, the next generation of shipping ports will incorporate sensors, cameras and a multitude of other devices connected to a 5G network to form an integrated communications system.

Ports and vessels will be able to exchange data in real-time to facilitate seamless loading and unloading of ships using intelligent unmanned ground vehicles. In Singapore, 5G is being trialed in the country’s Pasir Panjang Terminal to enable driverless automated guided vehicles (AGVs) to navigate the facility and load/unload cargo³.

The ultra-low latency of 5G enables the vehicles to respond to commands almost in real time, while its high bandwidth enables operations to be scaled without compromising efficiency. It is estimated that with 5G, it will be possible to have more than 2,000 AGVs in simultaneous operation in Singapore’s upcoming Tuas megaport, up from the 300 to 400 AGVs allowed by 4G.

Another segment of the supply chain that looks set to be transformed by emerging technologies is road freight. Traditional fleet management for road freight involves the use of telematics tools to plot and track driving times and routes by plugging a physical device plugged into each vehicle. These devices connect with an application that gives managers access to vehicle data and enables communication with the driver.  

With 5G, AI and the use of a wider range of smart sensors, much more functionality can be enabled. Companies will be able to take advantage of diagnostic data in real time, with digital dashboards and metrics that provide insights into driver behaviour, vehicle location, fuel efficiency, truck wear and potential component failure. Vehicles can also be dynamically rerouted based on real-time traffic patterns and weather conditions.

The next step up with 5G will be to revolutionise road freight with automated trucking. It is believed that use of self-driving trucks will be widespread long before self-driving cars⁴ and bring about a substantial change in how goods are transported. With its extremely low latency, 5G will enable an autonomous truck to respond quickly to changing road conditions, making it safer and more reliable.

With more and more people now shopping online and expecting same-day deliveries, manufacturers and retailers must scale up their warehousing operations to meet customers’ demands. As they do this, manpower overheads will be a major concern as labour represents their greatest operating cost⁵.

Automation in distribution centers and warehouses will help businesses to address this issue. This includes the digitisation of manual processes, the deployment of technologies such as pick-to-light systems and the use of robotic order picking systems powered by 5G.

The ultra-low latency and reliability of 5G will enable real-time control over the robots, increasing the speed and precision with which they can find, pick and move inventory in large warehouses. 5G will also allow even more sophisticated vision picking systems based on AR to be deployed in logistics, reducing human error and increasing productivity.

The rise in online shopping also puts pressure on businesses to ensure that customers are kept up to date on the delivery status of their purchases and receive them on time.

The product-tracking capabilities of 5G-enabled IoT enables them to address these requirements in last-mile delivery, opening options such as the use of third-party logistics providers and even allowing businesses to explore new models such as on-demand crowdsourcing for logistics. The latter, which is akin to the ride sharing model, can potentially increase agility in distribution and introduce new opportunities for direct-to-consumer retail and dropshipping.

Another last-mile option that is enabled by 5G is automated delivery to end-consumers using terrestrial or aerial drones. These can be piloted remotely with commands transmitted in almost real time via an ultra-low latency 5G network for accurate navigation and safety.

Supply chain transformation is critical to business survival as customers become more technology-savvy and demand quick shipping, real-time visibility, flexibility, and great service.

Businesses must evolve with technology. The use of IoT, AI and 5G to aggregate and analyse data across the logistics chain will be a game changer, enabling businesses to improve visibility and increase automation across their supply network. This creates agile and resilient supply chains that will be better able to anticipate and respond to changing market trends and withstand any shocks caused by the next big disruption.     

Power up your supply chain with 5G. Speak to us to learn more.

Sources:

¹ American Journal of Transportation, Logistics Challenges and Opportunities in a Post Covid-19 Business Environment, 2021

² DHL, 5G and what it means for logistics, 2022

³ Singapore Maritime Week, How 5G is making waves from ship to shore, 2021

⁴ Unleashed Software, 10 Trends in Supply Chain Management & Logistics for 2022, 2021

⁵ Logistics Manager, How 5G will impact the logistics industry, 2021