How 5G and Supply Chain Logistics Are Converging

April 21

Mixing 5G and supply chain logistics is a steadily growing strategy for industrial facilities and many other types of businesses. Hospitals, utilities, and manufacturing plants need massive bandwidth to handle the big data coming from IoT sensors. Embracing 5G is leading to faster and more reliable networking with minimal disruptions.

There are some barriers to adoption, though. One of the main reasons some manufacturers and their suppliers will be hesitant to invest in 5G is the cost. Another challenge is the learning curve that employees must face. For more established organizations, the question will simply be how much new digital technology to invest in beyond 5G, which encompasses artificial intelligence and machine learning.

However, while these barriers do exist, the benefits of 5G can far outweigh any challenges for its adoption. Here are a few reasons why suppliers are investing in 5G.

A Solution for System Streamlining

Businesses of any size can adopt 5G and supply chain digitization in a move toward greater efficiency and productivity. Companies that still use manual controls to monitor products and processes will face tough challenges against competitors that embrace digital transformation.

One of the advantages that a more digitized operation can have over more conventional operations is automation, which allows organizations to get more work with higher accuracy in less time than one person or sometimes even an entire staff. Another way this modern networking technology can streamline your operation is by generating a wealth of valuable data for you or machine learning software to analyze.

More Organized Warehousing

Warehouses are filled with IoT sensors so that a specific product - out of thousands - can be tracked and found instantly. Due to the expanding collection of data, 5G is a very sensible solution to handle the higher volume of data transmission.

Traditionally, all kinds of products got lost or damaged in storage somehow. But now, thanks to broader and more powerful connectivity, it's possible to monitor a product every second of its journey, from the manufacturer through the supply chain. Managers can now, for example, pinpoint exactly where and when something bad happened to a shipped item.

Real-Time Fleet Management

Fleet management can also be streamlined with 5G, as it allows headquarters to stay connected with each company vehicle at all times. This real-time management capability tracks location, gas mileage, tire pressure, and many other factors that affect vehicle performance. Collection of this massive amount of data on a daily basis is also much more efficient with the wider and faster bandwidth provided by 5G.

The more trucks a company has in its fleet, the more they need 5G to accommodate the high-volume data transmission. This technology is particularly ideal for a courier service comprised of independent drivers.


 You will no doubt hear more and more about 5G and supply chain logistics transformation as the 2020s unfold. It will help businesses of all kinds manage a much larger pool of data than they currently handle. Consumers are embracing 5G as well since it will allow them to monitor deliveries more accurately and at any time.

Johannes Beekman

About the author

After 25 years in engineering, Johannes Beekman founded IoT Marketing with the goal of helping companies bring wide-scale awareness to their inventions. He received a Master of Science in Physics degree from the Eindhoven University of Technology, and a Master in Business Administration degree from the Wharton School of the University of Pennsylvania, and started his career in the semiconductor field. Johannes pioneered two successful wafer fab startups for Philips Electronics; one in Europe and the second one in Asia. And served as Senior Program Manager for Sematech, where he provided solutions for semiconductor industry-wide product improvement and cost reduction challenges. Johannes has also published articles on several trade-focused websites.


Automation, fleet management, Industry 4.0, logistics, logistics tech, warehousing

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}