5G is Revolutionizing the Supply Chain

5G network technology is transforming the supply chain with faster performance, improved safety and higher data capacity. These features are crucial for automation and optimization technologies like robotics and IoT. What are the benefits of adopting 5G, and how are supply chain businesses using it? 

Benefits of 5G in the Supply Chain

There is a lot of buzz about 5G today, but is it really worth investing in? 5G networks have a few key advantages over 4G, making this technology a game changer for supply chain businesses. 

Low Latency

One of the biggest benefits of 5G compared to older networking technologies is significantly lower latency. Latency can be five milliseconds or less on a 5G network, which is 12 times less than the average minimum of 60 milliseconds on 4G networks. 

Reducing latency is critical for supporting the growing array of cutting-edge supply chain technologies, such as IoT devices and smart sensors. Performance relies on rapid real-time communication. High latency hinders the ability of these devices to transmit crucial data to one another. 

Supply chain businesses on 5G networks can ensure that their devices communicate as fast as possible. This is important for safety as well as performance. 

High Data Capacity

More technology and devices in the supply chain bring an exponential increase in the amount of data businesses must store and transmit. Limited network capacity and bandwidth make it challenging to maintain the amount of communication necessary to keep large numbers of devices running smoothly. 

5G resolves this problem by offering more bandwidth so larger quantities of data can be transmitted at once. In fact, download speeds on 5G networks are up to 10 times faster than on 4G. 

For instance, a smart manufacturing facility might have dozens of robots, hundreds of IoT sensors and countless computers, laptops, smartphones and tablets running daily operations. Even if its network has the lowest latency possible, low available bandwidth will create a bottleneck and slow down performance on all devices. This issue is far less likely to occur on 5G networks. 

Improved Reliability

5G networks are widely considered more reliable than 3G or 4G due to lower latency, higher bandwidth and more available frequencies. Users may have a signal on 4G, but if the network is congested, they may not be able to do much with their connection. That makes these systems unreliable because performance relies heavily on keeping traffic relatively low. 

5G networks are much better at managing traffic thanks to improved bandwidth. 5G operates over a much wider range of radio frequencies than 4G. This means there are more radio frequencies through which data can be transmitted and received, reducing traffic. As a result, it is much more difficult for a network to hit maximum capacity and suffer performance drops. 

Applications for 5G in the Supply Chain

How are supply chain businesses using 5G networking? There are many applications for 5G in logistics, manufacturing and distribution, but a few demonstrate the core benefits in action. 

Improved Visibility With IoT

Visibility is the key to advancing supply chain operations. Businesses with high visibility experience lower costs, higher customer satisfaction, fewer errors and more. Smart data processing tools like AI and IoT sensors are great for improving transparency. However, these devices rely on large amounts of data and constant communication with one another. 

5G has the bandwidth and latency to support IoT devices at a large scale. Safety becomes a serious concern when warehouses are full of robots operating closely with humans. 5G networks have the speed and reliability to ensure sensors perform as fast as possible, preventing accidents. 

Additionally, 5G makes monitoring a large facility using IoT devices much more manageable. Real-time data is invaluable in supply chain businesses. A 4G network can easily get congested with high data traffic. 5G is better equipped to deliver updates even with a large fleet of devices and sensors. 

Digital Twins and Simulations

Digital twins are an increasingly popular tool in the supply chain. They are realistic simulations of a real system, such as a warehouse. Business leaders can use the digital twin to test new ideas without disrupting real-world operations. This allows them to optimize and streamline quickly and efficiently. 

Industry experts emphasize the importance of real-world and real-time data in the success of digital twins. Anna Herlt explains in a McKinsey interview, “A digital twin is actually a digital representation of a physical object — a representation that we always look at in its environment. What’s important is that you link the digital twin with real data sources from the environment and are able to update the twin in real time.”

5G networks can deliver the consistent real-time updates a digital twin project needs. They’re also better equipped to handle the high amount of data, analytics and processing power required, especially if the simulation runs in a cloud environment rather than on-site. 

Remote Operations

Many people who think of remote work imagine typical office jobs that can be performed from any laptop or PC. More supply chain roles are becoming prime candidates for home-based positions, though. 

For example, a remote forklift driving platform won an innovation award in 2022 for its fresh approach to a crucial supply chain role. It uses cameras and sensors to give remote operators a 360-degree view around their vehicles and key performance indicators in-person drivers wouldn’t be able to see. This technology significantly increases the hiring pool for formerly in-person-only supply chain roles. 

Remote work technologies like this could revolutionize supply chain jobs, but they rely on high-speed data transmission. Video and sensor feed must be viewable in real time to ensure safety and performance, and 5G networks can support this technology. 

5G: The Future of the Supply Chain

5G networks are more than a boost in internet speeds. This cutting-edge network technology lets supply chain businesses advance their operations with technologies like IoT and robotics. 5G can support these technologies on a large scale with reliable, high-performance connections.