The use of 5G in supply chain operations can allow organizations to optimize their routes to avoid unnecessary trips and inefficiencies. Improved geolocation technologies can allow for better visibility into delays and unforeseen travel circumstances involving, for example, traffic congestion in highly populated areas.
By complementing 5G and edge computing with other emerging technologies, like artificial intelligence and machine learning, it’s possible to more accurately predict when products will physically arrive on the retail shelf.
Most companies still use manual controls to track and trace products. The use of 5G in supply chain technology makes it possible to label, track and record all shipments electronically to not only optimize supply chains but also help prevent cargo from getting lost or stolen.
Armed with those insights, it then becomes a lot simpler for manufacturers to not only predict when shortages are likely to occur but also mitigate them by finding alternative sources for raw materials and other critical components before their supply chains experience serious disruption.
Businesses making moves
According to a recent McKinsey survey of dozens of supply chain executives, close to three-quarters of supply chain functions currently rely on spreadsheets to manage processes, which make human errors a real risk and can lead to major disruptions. That being said, a surprising amount of progress is being made toward modernizing the global supply chain.
Supply chain leaders are aware that change is necessary and are taking steps in that direction. Ninety percent of leaders expect to overhaul planning IT within the next five years, with nearly a quarter (23%) reporting they have already done so. Four out of five expect to or already use AI and machine learning in planning, with another 60% planning to do so in the future.
An example of a business making moves is FM Logistic, an international supplier of omnichannel supply chain services, which has partnered with Verizon Business to transform its global network infrastructure. The secure and super-charged SD WAN network will run across FM Logistic’s operations in 14 countries to enable digital transformation initiatives that span a raft of IoT and AI technologies.
“With new digital applications on the horizon such as Internet of Things, artificial intelligence and machine learning creating a digital data explosion, it is crucial that businesses assess their existing networks to ensure they are ready for this fast-paced digital future,” says Scott Lawrence, group vice president of Verizon Business in Europe. “Newer networks feature better security, more capacity and enhanced functionality. They can help supercharge strategic business growth and new service innovation for increased competitive advantage.”
The upgrade will allow for FM Logistic to get ahead of the curve and prepare its infrastructure for the next generation of operational innovation.
