The Benefits of 5G Technology For the Logistics Industry?


5G is a real revolution in mobile communication and data transmission. The fifth-generation network will bring significant technological progress, which will undoubtedly benefit the logistics industry. Benefits include improved visibility in supply chains, better fleet management, and decision support. Let’s look at the main benefits of implementing private 5g networks for the logistics industry.

What Is The Advantage of 5G Technology?

5G networks and devices that support this format are the way to increase productivity. The potential of this technology is quite high, and therefore there is no doubt that 5G will qualitatively change approaches to the development and use of information services.  One of the benefits of using 5G is the increase in data transfer speeds. The speed of sending a request with a subsequent prompt response is important both for everyday life and for performing work tasks.

A person who has an active social life and uses novelties at work and at home cannot do without not only a smartphone and a laptop, but also without smart home technologies, as well as such entertainment devices as a game console, headphones, etc. All these devices require an Internet connection, but 4G cannot always cope with such a load. For these purposes, there is 5G. This format allows you to create up to a million connections per square kilometre, which is much higher than 4G.

This is done by placing miniature 5G towers in various places, such as on rooftops or light towers. The small cell network works together with the main 5G network at low power. The signal range of such a tower does not exceed half a kilometre, it hardly penetrates obstacles and largely depends on favourable weather conditions. Therefore, the decrease in signal quality can be compensated by increasing the number of small cells to cover as large an area as possible.

For logistics companies, the use of IoT can also be an advantage. With the use of 5G, this is much easier to implement. The Internet of Things involves a system of electronic devices that efficiently exchange data with each other. In the logistics business, these can be sensors on vehicles that, using 5G, transmit in real-time such important parameters as the location of goods during delivery, the temperature of goods, etc.

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Implications of The Launch of 5G For The Logistics Industry

The relevance of data is an important factor in the successful organisation of the supply chain. The effectiveness of information systems depends on the speed and correctness of decision-making, which affect both the mood of customers and the company’s profit. The introduction of IoT devices is a path to a deep understanding of business processes and transparency of operations. Consequently, many supply chains will become more responsive and agile. For example, 5G devices in warehouses and distribution centres can self-notify when inventory levels are low. Also, the equipment can independently report problems or automatically schedule service work. This will save both money and time, resulting in a higher level of efficiency in the logistics industry.

Devices that support augmented reality can enrich or augment information beyond what we see. For example, situations occur every day in warehouses when an employee needs to find a product among several thousand similar products and packages. This task can be completed quickly with the use of a smartphone or AR glasses. Such devices can accurately indicate the location of the goods using colour changes or virtual animation. 5G networks can transfer the large amounts of data needed to seamlessly render such images in real-time.

The Main Benefits of Using 5G Technology in Logistics Services

If your business is related to logistics services and you want to realise its full potential, we recommend that you pay attention to 5G, as the technology opens up a lot of new opportunities. Let’s look at the main advantages of 5G technology in logistics services.

  1. Better visibility of threads. Supply chain visibility is about much more than just tracking deliveries. The biggest benefit of 5G technology is the immediate and accurate visibility of supply chain operations, in particular the visibility of purchases, stocks, orders, production, and deliveries in the operating environment, supported by active real-time event management. Logistics companies can monitor and manage the flow of processes and services, making decisions in real-time, which is especially desirable when responding to disruptions in the supply chain.
  2. New opportunities in fleet management. Every commercial vehicle is equipped with sensors that monitor its performance, helping to maintain fleet availability and avoid breakdowns. Since 5G networks will also operate outside urban areas, the fleet of commercial vehicles will become part of the always-on transport network. Transportation Management Systems (TMS) will enable real-time monitoring of vehicle usage, benefiting the entire supply chain.
  3. Predictive decision support. When making decisions, it’s always a good idea to have as much information as possible to make sure you’ve made the best choice. Due to the likely increase in the amount of data generated by sensors and IoT devices in 5G networks, decision support systems must work with even greater accuracy.
  4. Ability to use machine learning and artificial intelligence. With high speeds and low latency, 5G enables more widespread use of machine learning and artificial intelligence in logistics. For example, autonomous vehicles can communicate quickly, optimise routes, and avoid congestion to improve delivery efficiency.
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These are certainly not all the advantages of the 5G network. The technology as a whole provides users with a more reliable connection and resistance to interference compared to previous generations of the network. This is especially important for logistics operations, where the reliability and stability of communications play a critical role.

Final Thoughts

5G not only provides mobile broadband that is faster, more stable and better quality, but also provides support for the Massive Internet of Things (IoT). The increased bandwidth allows you to remotely manage more devices in areas where real-time network performance is critical, such as supply chains.  If you want to remove restrictions from existing networks and automate logistics operations using private 4G and 5G networks, we recommend UCtel. The company has extensive experience in assessing the state of networks in the enterprise and providing the best solutions to improve communications. UCtel partners with Nokia DAC to simplify and accelerate adoption and automation of private 5G networks