As enterprises across the world look to bring their supply chains into the future, they’re implementing tenets of Industry 4.0 into their operations. The result has been Logistic 4.0, a digital transformation framework, that at its foundation, requires connectivity enabling Internet of Things (IoT) applications, automation and a greater focus on accurate data collection in warehouses and supply yards.
The catalyst for this digital transformation has been an unprecedented rise in e-commerce. According to the federal government, e-commerce sales rose to $1.1 trillion in 2023, a 7% increase from 2022. To respond to higher consumer demands, businesses are scaling their supply chains. This means more/larger warehouses and more/larger outdoor supply yards.
With this logistics landscape as the backdrop, enterprises are streamlining workflows to combat this new normal. Not to mention, like many industries, talent shortages have also hit the logistics space. Logistics 4.0 helps combat these challenges. When businesses can digitally connect their warehouses, it drives efficiencies, improves productivity and enhances safety. There are many tools powering this connection including scanners for inventory management, IoT sensors for predictive maintenance on equipment like forklifts, and machine vision cameras for security, quality control and collision avoidance.
The foundation of this connection is a resilient and mobile network — a network that quite literally connects all the devices warehouse and outdoor supply yard workers use to drive efficiency and safety. In many cases, warehouses are still using Wi-Fi as their primary network option, which at times isn’t equipped to handle the dynamic environment of warehouses. Alternatively, a private cellular network (PCN) network solution is uniquely equipped to help enterprises truly leverage Logistics 4.0.
The unique challenges in warehousing and logistics
Asset management at warehouses and outdoor storage yards usually come with a unique set of challenges that need an always-on network. This includes the use of multiple asset management applications, devices and an operation that spans over a wide area (both indoors and outdoors). Many organizations that leverage a Wi-Fi network experience unreliable connectivity, sometimes halting operations and oftentimes frustrating employees.
Also, due to how and where warehouses or storage yards are often constructed, there could be Wi-Fi interference challenges or limitations on how far an organization can expand its Wi-Fi network.
If that wasn’t enough, many warehousing operations use mobile devices — such as smartphones and tablets — or handheld scanners to keep track of inventory. Warehouse and logistics personnel often count on these devices to share real-time inventory data. Due to the aforementioned Wi-Fi challenges, handoffs between Wi-Fi access points could be spotty and leave those devices disconnected from the network.
Lastly, there’s the issue of network security which is extremely important in a warehousing and logistics operation. In addition to the valuable assets warehouses or storage yards have, certain warehousing operations — especially those in retail — may have personal customer data in their systems. Most network setups in industrial settings, and the sheer amount of devices in those settings, often lead to network blind spots that bad actors can leverage to gain access. As a result, warehousing and logistics operations could face denial-of-service attacks and ransomware.
Whether it’s security or connectivity issues, today’s warehousing outfits can’t afford a disruption in network connectivity which leads to a disruption in daily workflows. The result is a loss in customer satisfaction, misplaced assets and ultimately a loss in dollars. The solution then is a private cellular network (PCN).
Private cellular and its advantages
Compared to Wi-Fi, PCNs provide organizations with four advantages when it comes to warehousing and logistics. This includes coverage, security, mobility and reliability.
In terms of coverage, private cellular networks not only offer enhanced coverage when compared to Wi-Fi but also flexibility. With a private network, warehousing and logistics operations can provide one network that can simultaneously handle all the business-critical connectivity needs inside a warehouse and in an outside storage yard. The key here is the efficiency PCNs provide compared to Wi-Fi. For example, in an indoor warehousing space, Wi-Fi networks would need three to five times more access points than a PCN to cover the same area. This is due largely to the lower noise floor and higher-powered radios used for a private network.
Then there’s security. Today’s warehousing operations cannot afford downtime from a cyber-attack. At the same time, there are so many connected devices in a warehouse that the attack surface in a warehouse is bigger than ever. This is why security is so critical. Private networks offer enhanced encryption measures when compared to Wi-Fi. These encryption standards are founded in larger mobile network operation standards, and to ensure the best security measures. Moreover, each device must have a subscriber identity module (SIM) card authorized by central network control to even access the PCN.
In terms of mobility, private networks allow consistent coverage of all devices across the network and don’t struggle with handoffs like Wi-Fi networks. By nature, PCNs are deterministic meaning device handoffs aren’t random and unreliable. Moreover, the network calls the shots optimizing and dictating which radio a client should be connected to. Enterprises govern device connections through a central network control, which optimizes signal strength consistently. This benefit is extremely important for tracking assets — such as raw materials or finished goods — as they move in, through and out of a warehouse.
A material handling and logistics provider for a major automobile company provides a great example of how private 5G can transform warehouse operations. The company removed its on-premise Wi-Fi solution and now has private 5G for all business-critical operations. This change, which was implemented in late 2023, has resulted in no network downtime at the time of this article.
The coverage, security and mobility PCNs offer make it the most reliable option organizations can choose for their warehouse. This reliability is realized for businesses in the form of less downtime, less interruptions to workflow, on-time deliveries and business profit.
Private cellular and the future of warehousing
To navigate increasing e-commerce dependencies, every stage of an enterprise’s supply chain will need to mitigate disruption and meet the growing industry expectations. In other words, today’s supply chains must be “always on.” In turn, enterprises need warehouse network solutions that are always on. This is where private 5G and private 4G LTE are valuable. The mobility, security, reliability and coverage will create the foundation upon which enterprise supply chains can handle today’s evolving consumer demands and prepare for tomorrow’s challenges.
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