How 5G Will Impact the Logistics Industry


Whether the estimated $4.2 billion infrastructure revenues from 5G is reached by the end of 2020 or not. 5G remains on course to be the next big thing in telecommunications. Looking beyond the immediate challenges  adoption may actually be accelerated by our increased need for internet-enabled services.

In the world of transportation and logistics, for example, 5G and IoT are expected to make a huge impact. The use of 5G and its related technologies is expected to transform nearly every aspect of the logistics industry, from retail logistics tracking to maximizing the speed of data transfers. In this article, we explore the impact of 5G in the logistics industry looking at more practical issues that the sector is hungry to solve.

Better Location Tracking and Route Mapping

The rolling out of 5G service and IoT tracking will allow logistics companies to have more efficient tracking capabilities, expanding coverage in areas that were previously “dead zones” on GPS systems. This improved geo-location technology will optimize the visibility of valuable cargo, providing better insight for delays and other unforeseen circumstances.

Furthermore, 5G will improve the way logistics companies map out their routes, helping drivers find the most efficient and timely routes for quicker delivery times. Again, rural areas and other previous “dead zones” are now factored into the equation, which helps find the quickest and most efficient routes for delivery.

In the event that the route goes through a busy urban area, 5G will help prevent strains in the network. Ultimately, this will lead to quicker and more timely deliveries overall, with more updates to let you know about the current status of your transported goods.

Businesses that are already adopting mobile technology in their processes are at an advantage and will be ready to hit the ground running.

Improved Repair and Communication Capabilities with 5G

Enhanced virtual reality (VR) and other technologies will become widely available with the implementation of 5G, supporting virtual backup assistance for on-the-road logistics cargo. This means improved remote roadside assistance and decreased downtimes across the board.

Plus, with technology such as augmented reality (AR), logistics vehicles will be able to provide improved recognition for delivery points, ultimately speeding up delivery times while enhancing the safety of the drivers as well.

Decreased Downtimes for In-Transit Logistics Vehicles

With 5G updates as well as AR and VR technology rollouts, any issues with the mechanics of logistics vehicles can be addressed remotely. This will decrease downtimes for in-transit vehicles and optimize delivery dates for customers.

Better Inventory Tracking for Decreased Theft and Loss

Theft is a big problem in the logistics industry, with overall losses surpassing $20 million in a single quarter. As logistics companies continue to fight this problem, 5G presents the opportunity for tagging and tracking in ways we haven’t seen before.

5G will provide inexpensive sensors for improved single-item tracking, as well as sensors that will send immediate alerts when a truck’s load becomes lighter. This will allow real-time inventory tracking for fewer losses than ever.

Long-Term Impacts of 5G on the Logistics Industry

Ultimately, 5G will allow quicker transfers of data for real-time updates on locations, inventory, and vehicle functions in the logistics industry. This increased visibility will undoubtedly change the logistics industry for the better, allowing you to have a better idea of the status of shipments from start to finish.

SmartConsign is ready to take on 5G and use it to your advantage. Contact us today to learn more about how we can help you improve productivity.