Four Key Effects 5G Technology May Have On Logistics

Four Key Effects 5G Technology May Have On Logistics

5G may push logistics into full digitalisation

5G technology has certainly been a hot topic around the world for the past few years and logistics, like any other industry will be affected in some way. The technology is expected to revolutionise supply chains as it becomes available in more markets over the next few years. In fact, one study suggests that by 2025, 5G could cover one-third of the world’s population.

While it’s impossible to predict exactly which areas may be most affected by 5G, it’s definitely expected to render logistics processes faster, safer and more reliable. Here are a few ways 5G may evolve the logistics industry.

1. Real time tracking 


Billions of dollars are lost every year due to revenue leakage. The lack of real time visibility in the supply chain is a leading cause of that. However the emergence of 5G is expected to eliminate the dark areas of the supply chain wherein logistics companies currently cannot track vehicles or packages in real time. 


Once real time data is available to logistics companies, they’ll be able to provide status updates, forecast potential delays, optimize fleet routes and accurately predict when vehicles will arrive at their destination.


2. Reduce supply chain risk


It remains a challenge today in the logistics industry to track the exact location of goods in international transit. However, the wide range of 5G appears set to pave the way for globally used tracking and condition monitoring. 


Smart devices with 5G will include battery-operated tracking devices that can be securely attached to containers, trucks, boxes or on the goods. When attached, they can monitor location, temperature, humidity, light, shock and other key metrics to ensure the goods are safe from point A to B.


This will ensure that goods are less susceptible to tampering during transit with accurate real-time monitoring.


3. AR and VR applications


AR and VR applications will be significantly enhanced if supported on a 5G network. With a reduced lag time the user experience for AR (augmented reality) applications will be vastly improved. 


Order picking and repair processes will be sped up due to the shorter time needed to transfer information to AR-enabled devices. 


For example, teams equipped with AR glasses can display step-by-step instructions for assembly or repair through their lenses in real time. This will result in valuable training time saved and additional labour costs.


  1. Faster and safer port operations


Some gateways have already become testing areas for 5G platforms. In these advanced transportation systems, sensors, cameras and devices are connected to a network, resulting in an integrated communications system. Smart vehicles can broadcast their cargo information so they can gain access into controlled areas.


The system relies on a fast, reliable bandwidth connection that’s only possible with 5G technology. These digitisation efforts can open a wide range of possibilities for the industry. These digitisation efforts seem certain to create a safe, secure and effective operations system.

Wrapping Up


We’ll definitely be learning more on the benefits of 5G as the technology becomes more widely available. Ultimately, the industry’s most innovative companies will make the most of 5G in building to a bright future of connected logistics. 

About Navitrans

Navitrans is the most complete out-of-the-box logistics software on the market today, with extensive and easy-to-use functions for road transportationsea and air freight, intermodal transport and public warehousing. It is developed on Microsoft Dynamics 365 Business Central and available on-premise or as a hosted solution. Call us today toll-free at +32 56 73 20 10 or email us at and we will be happy to walk you through our full suite of solutions.