EXECUTIVE SUMMARY
Industrial – used as a collective term for logistics, manufacturing, warehousing and other industrial uses - is a sector that can be truly transformed through the adoption of 5G.
Cathy Fearnhead
partner
- Adddleshaw Goddard
Cathy is co-head of the firm's logistics sector group and advises developers and investors on the development, pre-letting and funding of a range of asset classes including logistics, offices and student accommodation.
Smart warehouses
- smart sensors communicating with each other can cut energy product and wasteDigital twins
- manufacturing failures can be slashed through real-time virtual modelling capabilitiesAutomation
- the supply chain can be automated, speeding up deliveries Monitoring and benchmarking
- movements of goods can be tracked to monitor a range of factors from freshness of goods to the environmental impact of the supply chain Main impacts of 5G on Logistics
5G will primarily benefit the industrial sector in three areas:
- Making warehouses super-efficientthrough smart sensors, cutting energy and product waste
- Ending manufacturing failureswith ‘digital twin’ real-time virtual modelling capabilities from various locations will empower more effective strategic decisions
- Completely automatingthe supply chain, speeding up deliveries
All in all, it is estimated 5G will lead to:
- An additional £2bnin the value of UK manufacturing by 2025
- 83% growthin the logistics sector’s economic productivity by 2035 on 2013 levels
- An average annual 10% growthin e-commerce trade by 2021, swelling the value of the sector to £48bn
BIGGEST OPPORTUNITIES OF 5G
INTRODUCTION
Companies will rightly be concerned by security risks and by the unproven upsides of investing in any new technology.
For many people, their daily engagement with the world of logistics is receiving a dreaded red card from the Post Office informing you of an undelivered parcel.
HOW THE WAREHOUSE WILL CHANGE
One of the key shifts that will be felt far and wide across different industries from 5G’s effects on the industrial sector will be how it makes warehouse operations more efficient.
It’s not hard to see why: warehouses are increasingly specialised and tailored towards the bespoke needs of occupiers from different sectors. Long gone are the days when a developer could speculatively throw up a new unit and have it appeal to any and all tenants, give or take a refrigeration unit.
It isn’t just that the demands for handling and transporting different products are more complex. The steep climb in rents and business rates for town centre office and retail space this decade also means that firms across different sectors are increasingly dependent on warehouses as places to store stock. Bottom line considerations have driven firms to have less stock on hand in downsized prime location shopfronts, replenishing more regularly from out-of-town warehouses, or indeed to do away with shopfront spaces entirely and make warehouses the linchpins of online retail-focused operations.
Taken together with the secular trend towards online shopping and delivery to customers, the increased importance of industrial property over the last decade mean the improvements instigated in warehousing by 5G will likely ripple out and be felt by most sectors across the economy.
Pharma
Retailers - particularly grocers - will find the reduced spoilage from 5G enabled environment monitors useful. Even so, the problem of perished groceries tend to be obvious long before purchase when they haven’t been stored properly.
But, for pharmaceutical firms supplying medicines that need storing carefully, the worst-case scenario in a case of spoilage could end in death.
Therefore, pharma firms need more rigorous environmental monitoring and logs. As a safeguard, environmental data needs to be instantly visible on each item, rather than just fed back to warehouse management software.
Smart labeling, the result of another DHL research project on ‘semantic product memory’, adds a further level of safety for pharma product storage, with mini-monitors independently collecting and displaying product information for each item. This provides a failsafe for warehouse monitoring systems, but also has further applications both throughout the supply chain and for the end customer.
The concept has been built on by printed electronics provider Thinfilm, in partnership with Xerox. They have developed mass-printed smart memory labels, providing an instantly visible log on each product of its storage requirements and the conditions it has been stored and handled in across the supply chain. This can alert logistics providers immediately to any specific package handling requirements, and provide a ‘digital seal’ showing how long goods such as medical supplies have spent in distribution. This also has the potential to be combined with blockchain validation processes, to provide a legal record that products have been stored and handled correctly at each step.
Retail
The added connective capacity of 5G enables all manner of individual technological improvements and monitoring capabilities for the many pickers, pallets, crates and machines, hard at work processing products through the modern warehouse.
5G’s improved capacity for asset and inventory management, where it is especially revolutionary thanks to its highway of data unlocking the ability to track and monitor every product in the distribution process, is in large part the fruit of work done under Alethia.
A German government-funded project run at the start of the decade by DHL in partnership with the Fraunhofer Society of applied science research institutes, Alethia created a wireless sensor network system allowing individual item tracking and monitoring across different transport modes.
Using individual low-cost electronic radio frequency ID tags for items and pallets which provide information on weight, dimensions and environmental conditions, scanners and camera monitors can provide real-time information on warehouse inventory. This allows automated restocking, damage detection, and minimises product losses and misplacements.
To use just one example, logistics specialists, Kardex Group, claim that eradicating human errors in pallet picking would save UK distribution centres
£260,000 in annual fines
for incorrect order cargo loading.
Where this inventory management is particularly crucial is in the guaranteed quality assurance of distribution that IoT solutions can provide, such as the DHL SmartSensor, a mini-computer product/pallet tag which offers full-condition environment monitoring.
Carriers can be alerted ahead of time to the conditions that warn of a pallet of fetid cabbages, an Amazon parcel of smashed glass, or even just a loaf of bread going off a day earlier than expected. Smart devices take in data from packages and shelves as varied as temperature, light exposure, air pressure, humidity and motion shock volatility (where packages are fragile). They can also read relevant info from RFID tags on items (which can hold information on relevant storage and handling requirements of each product) and then feed the data back to warehouse monitoring software if a package is at risk of damage.Ocado’s fully-automated customer fulfilment centres
. Some analysts
even consider Ocado to be ahead of Amazon’s capabilities in warehouse automation.
While Ocado’s first automated fulfilment centre predated 5G availability, having opened in 2016, it relied on unlicensed LTE connectivity, which was developed in partnership with engineering firm Cambridge Consultants.
LTE connectivity essentially provides near-5G capability in all but name, representing a huge upgrade on 4G data capacity and latency levels.
Explaining LTE’s importance in enabling automation, Ocado’s wireless team leader Adam Green, in a press release issued by Ocado Technology in November 2016, said: “While building a robot can be a relatively straightforward task, creating a swarm of thousands of robots and making sure you can communicate with every single one at latency of a tenth of a second is a whole different ball game”. The LTE solution, which sends signal through a network of small antennae distributed throughout each Ocado warehouse, was developed as a result of the unreliability of WiFi, which is typically limited to supporting 256 connections.
As such, Ocado’s automated fulfilment can be seen as a prototype, previewing the kind of advanced functionality 5G will make standard across retail warehousing once commonly available.
The automation in Ocado’s centres handles orders up to peak levels that would have previously have needed 2,500 employees to manage, with each of them responsible for a step in the complicated beginning-to-end process that online retail order requires.
From unloading and filing each grocery product that arrives at the warehouse in the right place, ensuring each is stored in the right conditions and at optimum stock levels to avoid spoilage, monitoring inventory levels, retrieving each individual product to compile into each customer’s order, ensuring all the order packages are correct, and dispatching the orders from warehouse to home – each process has been automated and handled by machines under the Ocado Smart Platform technology.
This technology underpins ‘the hive’, the orchestra of over 1,100 robots which combine AI with the full range of 5G’s IoT sensor capabilities. With an average order of 50 items taking just 5 minutes
to pack and unpack, one warehouse alone has the capacity to process up to 200,000 of the 260,000 orders Ocado processes each week - and completely free of human error. Ocado case study
MAKING WAREHOUSE OPERATIONS MORE EFFICIENT
Distribution warehouses have substantial energy demands, with electricity powering machines, pickers and conveyor belts, transporting goods from collection to storage to distribution, and feeding into the sensitive environmental requirements of storage rooms such as temperature controls and comprehensive lighting.
These often climate-unfriendly energy needs prompted 23 of the major players in industrial development - responsible for over 1.2m tonnes of annual carbon emissions - to come together in September 2019 as signatories to the
Better Buildings Partnership
, committing to running net zero carbon portfolios by 2050.
Though using greener energy sources (and generation) will no doubt be one side of that, the efficiencies the army of trackers monitoring utility usage 5G can support will be just as much another. All in all, Prologis estimates that 5G-enabled smart building energy management has the potential to make warehouse energy usage 30-40% lower than that required by building regulations standard across the industry.Building management
The vastly expanded bandwidth of 5G allows it to support thousands of IoT-enabled sensors across a warehouse floor. These sensors allow live monitoring of equipment, optimising and adjusting heat, light, water usage and ventilation as needed all across the building. With IoT-enabled detection systems even able to automate health and safety mechanisms and ease cargo loading, the potential for increased efficiency in warehouses is vast.
Predictive maintenance
will reduce downtime for vital machinery and assets that all modern warehouses rely upon, such as load-bearing forklifts, conveyor belt pickers or elevators between floors. With sensors on each machine monitoring its noise, heat and vibration levels, real-time data is fed through the cloud into predictive analysis software which detects the early indications of damage. This then sends warnings into building operations management dashboards of when items are likely to break, and alerts when pre-emptive repair is needed.Optimisation of assets
can also drive huge gains by combining the information provided by item and pallet tagging to reduce errors in items being loaded. This can be coupled with analysis of when conveyor belts or forklifts are idle and how they could be better utilised, which is how firms such as Bobcat
have been able to report 30 percent increases in pallets per hour with no inventory errors.
Alongside this, wireless plant machinery means production lines can be reconfigured quickly and cheaply. When you have to fix equipment in place, the costs of changing the production line are high – which means you have to construct a lot of that same specific product to cover costs, and the last thing you want to do is change the layout. Products and production lines are inflexible. If you don’t have to fix it in place, it gives you more adaptability, the chance to commercially produce smaller production runs and more potential for optimisation.”
“In a factory, it will enable something as simple as production line machines being cable-less, which in turn will change how we build things,” says Dr Colin Willcock, Chairman of the board, 5G Infrastructure Association.
Sustainable utilities
Greater
efficiency in warehouse utility usage
from automated sensors will likely also see welcome falls in overheads in some areas, with lighting accounting for up to 70 percent of energy usage in an average warehouse, according to firm Philips
. Past the obvious efficiencies of only using lighting where needed, heatmap analysis can also be used to advise storage arrangements, so that the parts of the building where footfall and heating are highest, complement storage and access requirements, cutting waste in both energy and time.
Even beyond the simple headline returns from more efficient utility usage, marrying IoT’s environmental monitoring capabilities with smart building energy management systems
can not only reduce energy and water use, but couple it intelligently with the demands of the broader energy grid. Where warehouses have their own local energy generators and batteries – for example, as at industrial developer Prologis’ warehouse in Marston Gate, which has a solar energy generator – smart building management systems can strategically make use of the generator’s stored energy to power the warehouse at times when energy tariffs are highest, before switching ‘on-grid’ to take advantage of times when energy charges are lowest. Health and safety
The improvements smart building management systems offer extend past optimised mechanical operational efficiency. Environmental monitoring and adjustment for heat levels and air quality can also improve not only the health, but the productivity of employees working in the warehouses.
5G process monitoring can deliver certain ‘efficiencies’ at the human staffing level, that will translate into genuine improvements for the lives of industrial workers. This is done through alerts enforcing best practice in health and safety, with surroundings detectors sensing whether health and safety processes are being executed correctly. This could lead to substantial reductions in accidents, for example among the
94,750 annual injuries from forklift accidents in the US each year
, 80% of which involve pedestrians. Figures such as these could compound into hundreds of thousands of averted accidents globally.
As Felipe Padilla Gomez, CTO of IoT, AI and Analytics, Hitachi Vantara
, comments, there are plenty of USPs for 5G and may relate to health and safety aspects: "Sensors and video analytics technologies can monitor whether workers are wearing their helmets, or whether best practice safety routines are being followed, which will reduce the amount of accidents that happen during building work. As well as that, augmented reality can streamline the construction process, showing exactly where a new building element will go, or ensuring something being put in place is perfectly aligned. Blending the digital with the physical means that land inspection and surveying can be delegated to drones – massively reducing development costs and the opportunity for human error. "5G-equipped buildings will practically become living organisms. Fully equipped buildings will offer full integration with the infrastructure of the city."
"Those making full use of the potential for IoT sensors embedded in all elements of the building will be able to fully adapt to the building’s users and activities – through regulating room temperatures, optimising to reduce waste in heat, water and energy, even through to predictive maintenance, detecting the anomalies and glitches that signal when a building element is in need of repair."
Augmented reality tech
has huge potential for health and safety by improving the efficiency of cargo removal, collection and loading. 5G’s increased data capacity means it can handle the real-time visual detection and analysis offered by hands-free AR glasses
. Hardware such as Google Glass, Vuzix, and the 3D depth perception-enabled Atheer One process visual data in real-time to highlight useful information. Tasks like loading cargo or packing the right items for orders will feature something akin to the tutorial stage of a video game, with AR glasses pointing out the right products or spaces to go to, making the entire process much quicker by cutting out time spent searching - and reducing injuries by ensuring cargo is loaded safely. Construction and infrastructure requirements
A huge amount of kit is required to support the immense data flows demanded by the dizzying array of connected tags, monitors, trackers and nodes. This will require early consideration during the design process and is unlikely to come cheap.
All of these micro data farmers will rely on the seamless, uninterrupted connection that requires a comprehensive
infrastructure of hundreds or thousands of small network antennae
to ensure complete indoor coverage without blackspots. 5G in an industrial capacity can’t rely on external network infrastructure akin to that provided by telecommunications masts for outdoor mobile phone coverage. As many who to their frustration have found themselves unable to get reliable 3G – or even mobile – coverage from inside a tower block will know, building fabric (concrete, steel, brick and the like) is one of the most reliable disruptors of telecommunications signals going.
As such, establishing reliable indoor 5G network connectivity depends on co-ordinating with OFCOM-regulated infrastructure providers with the Code Powers needed to install telecommunications networks – as well as negotiating legal contracts such as wayleave agreements providing the land access permissions to hook up their properties to 5G connectivity.
Indoor infrastructure requires the installation of extensive networks of ‘small cells’ (antenna the size of a small mirror, that each provide 5G coverage over a 10m radius), strategically placed throughout the building to avoid blackspots [see the Wireless Infrastructure Group Q&A, which goes into further detail on how these networks operate].
For a typical warehouse with a footprint over 100,000sq ft, the capital outlay for this kind of infrastructure will be a six, potentially even seven-figure amount.
In the short-term, occupiers may need to front the cost of this infrastructure, which in many cases, may not fall within the remit of utility provision agreed under lease terms with the landlords.
In the near future, developers should anticipate that 5G network infrastructure will be considered an essential utility by potential tenants. As such, prudent developers would do well to consider planning it as standard into future developments if they intend their developments to realistically command market-competitive rents for much longer.
Network slicing
For large, complex facilities that have competing needs, network slicing is a technology that allows multiple conversations to happen at once between different groups of devices across a single shared piece of infrastructure.
Network slicing will allow companies to create new private networks on top of the existing physical infrastructure, so they can then customise this network to their specific needs. Typically, mobile operators only use all their spectrum holding outdoors, right in the city centre. Beyond the city centres, there’s lots of spectrum and space for people to innovate, opening up the chance for enterprises to build their own mobile networks.
It is expensive to build the network, which explains why there are only four mobile operators. In addition, it is expensive to buy spectrum, and devices tend to be locked in on a sim basis. All these things we can expect to see changing, creating opportunities for new emerging niche providers from the fragmentation of the mobile network ecosystem.
It’s true that many of the future efficiency savings coming up the track are workable to some extent using current Wi-Fi, but the consistency offered by 5G and the sheer magnitude of machine-to-machine communications will pave the way to leverage 5G’s potential. Network slicing provides the answer on how to achieve both increased efficiencies and revenues, through differentiation and faster time-to-market.
THE FACTORY OF THE FUTURE: 5G’S EFFECTS ON MANUFACTURING
The explosion in real-time data analysis that 5G bandwidth offers will broach a new era of hyper-efficient manufacturing.
These assembly lines will be put to better use through better sequencing of their production input deliveries, and products will become more resilient thanks to digital twin modelling within virtual sandboxes.
McKinsey research however does flag one potential issue for manufacturing.
There is likely still substantial low-hanging fruit available in productivity gains for manufacturers just from using existing 4G data analytics capacity. At the end of 2016, they estimated only 20-30% of potential value they identified for the manufacturing sector in 2011 had been captured, primarily by industry-leading firms.
This reflects one of the prime limitations for the manufacturing sector overall. According to
research
by advanced tech adoption experts Digital Catapult, 70% of manufacturing firms see the utility of 5G for their organisation. While 45% of firms are focusing towards on-site and in-factory product optimisation, about a third are primarily concerned with supply chain monitoring and management, and under a quarter are aiming their efforts towards product life cycle management.
But while in principle manufacturers see the benefits, a key hurdle is that traditionally, connectivity is not generally considered as something that should fall within manufacturers’ R&D spending.
As such manufacturers based in industrial space without 5G infrastructure, who don’t have pre-existing agreements with landlords that the latest connectivity network upgrades will be provided throughout the lease, will find themselves in a difficult position in the early years of 5G becoming widespread: knowing that there are large potential savings on offer from funding upgrades themselves, but with only anecdotal evidence and future promise to go on in justifying such a large initial capital outlay.The wealth and depth of information that Big Data provides will see manufacturers identifying and executing all possible productivity efficiencies, such as exploiting the time that assembly lines are idle.
Economic potential of 5G for manufacturers
Manufacturing is obviously more dependent on machinery than warehousing, in that it is responsible not just for the supply chain, but the production of the core product itself.
In particular, 5G creates benefits through predictive maintenance. Figures in
analysis produced by Digital Catapult
for the Department of Culture, Media and Sport on 5G manufacturing use cases quoted figures of $22,000 worth of lost production for every minute of machine downtime at an average auto manufacturers. The 70% of machinery failures that 5G monitoring can detect and predict ahead of time could avert millions in losses across the sector each year.
According to McKinsey
, factories and other production environments have the potential to realise the biggest financial impact from the application of the IoT. They predict the industrial IoT will generate an economic value of between $1.2 trillion and $3.7 trillion by 2025.
The reality is with 5G enabled machines, savings and profits could be considerably higher.
"On the industrial side, 5G has the potential to change the means of production,” says Colin Willcock, chair of the 5G Infrastructure Association board.
“It will provide a digital platform that if not embraced will stop your company from being competitive, because it has the potential to save such a lot of money in the process of production, from conception to delivery of product.”Digital twinning: where 5G manufacturing comes into its own
Digital twinning is a real-time 3D model of a physical asset – whether that is a product being designed, or a building under construction – and is made easier by 5G.
The virtual model is an identical emulation of the asset as it currently stands in real life. The model is composed of remote sensing technology which feeds real time information from the physical entity allowing computers to crunch the data. For buildings and large plants, use of ultra-high definition drone or aeroplane photography will be used alongside laser or sonar scanning, or a mixture of both, which forms the basis of the initial elementary spatial model of the digital twin. Additional information on a building’s management systems and interfaces, or the environmental conditions a product is being stored in, can be added to enrich the realism of the virtual model and simulate the condition of the asset over time if these factors remain constant.
Developed
out of a research partnership
between Ericsson and Comau, digital twins essentially provide a hyper-realistic sandbox which product designers, or building constructors, can use to reveal any risks incurred by an action during the manufacture/construction process. This could flag potential faults and malfunctions, as well as highlight elements within a building or product’s structure that are under particular stress and in need of either additional support or regular repair.
Digital twinning will remove substantial risk from the manufacturing and development process, limiting losses in production caused by unsound design (e.g. structure collapses, which incur either repairs or write-offs of the damaged inputs), adding further health and safety fail safes for workers. This could include anticipating where worker routines could cause damage to structures, or where product/building fabric failures are both a non-negligible risk and likely to cause injury to workers.
Gartner, the advisory and research firm
, estimates that by 2021, around half of all major industrial companies will use digital twinning, and that it is likely to drive productivity improvements for these firms of around 10%. Sector investment: manufacturing’s 5G leash
WHAT THE INTERNET OF THINGS CAN DELIVER FOR LOGISTICS
Ubiquitous connectivity will drive one of the most visible consequences of 5G for our society: autonomous vehicles. Self-driving vehicles are just one part of the picture, however - and one which will require an infrastructure upgrade effort that will probably be the most significant of any across the 5G networking piece - when it comes to the profound technological leap in efficiency the logistics sector is likely to see over the next decade.
The potential economic upshot of this is hard to quantify. Automated, and increasingly electric, vehicles will have manifold benefits going beyond the simple overhead efficiencies of removing human labour limitations as a key constraint on logistics operations. The reduction in deaths from road accidents, for example, will have economic consequences in lives saved that verge on incalculable.
But certainly, efficiency savings in the sector won’t come a moment too soon, with secular increases in logistics costs for companies coming at a fast-rate in recent years driven by customer-luring policies such as free returns. E-commerce returns are anticipated to cost
$550bn worldwide by 2020
– a 75% increase on its 2016 total. Further to this, any energy efficiencies in a sector that has rocketed transportation to pole position as the biggest emissions producing sector in the US
, thanks to the explosion in last-mile delivery fulfilment in recent years, will also come as a welcome relief for logistics operator overheads – to say nothing of the planet.For example, 5G will minimise theft risk throughout the supply chain through the improved real-time functionality of existing security monitoring.
DHL anticipates that ‘track and trace’-type sensors will be able to deliver faster alerts and more accurate tracking, likely being able to incorporate greater 3D mapping capabilities than that of existing ‘dot on a map’ tracking, possibly also incorporating predictive functions based on analysis of journey tracking data from other theft incidents. While only a relatively small number of cargo deliveries are successfully stolen,
2012 FreightWatch figures
reported over 1,500 cargo theft incidents annually across the US and Europe. Sizeable reductions in write-off overheads could be in the offing.
Substantial fuel savings
await too for logistics operators. Just as 5G trackers will sweat potential asset efficiency in the warehouse, they will do the same for logistics fleets. By analysing when and where trucks, and the containers on them, remain idle, as well as optimising journeys through live traffic monitoring route analysis, the removal of ‘empty miles’ incurred by inefficiently loaded deliveries and time wasted in traffic is anticipated as likely to generate 10 percent reductions in truck miles
.
National Infrastructure Commission
research in 2016 found on average that vehicle platooning, (where follow-the-leader style lorry fleet arrangements see several automated trucks emulate the movements of a human-driven lead lorry) resulted in each automated lorry using 12% less fuel over a journey. Factoring in the potential gains in fuel efficiency from vehicle platooning, logistics operators can realistically anticipate fuel cost savings of over 20% from 5G efficiencies - even before the dawn of electric fleets.
With platooning also only depending on a 5G connectivity chain being maintained between a fleet of vehicles (which operators can take a lead on developing), platooning will likely be commonplace much sooner than the autonomous road network.The last-mile
Logistics is also unique in seeing nascent adoption of
customer-use cases
for last-mile fulfilment 5G logistics technology. While innovations such as Amazon Key, which gives Amazon delivery men front door access permission when dropping off parcels at Prime customers’ homes, have spawned mass commentator scepticism when previewed, plenty of tech-comfortable customers prioritise ease of delivery far ahead of other considerations that may lead to the dreaded red redelivery card on their doormat.
Halfway measures such as real-time locations from verified customer phones allowing for flexible delivery addresses
, or smart postboxes
, will offer customers reliable drop-off locations or fulfilment while retaining some peace of mind over access to their home. 5G enables both functions, which depend on the real-time validation that IoT-enabled logistics vehicle sensors will be able to provide, to execute the ‘digital handshake’ confirming that fulfilment access requests aren’t fraudulent.
Capabilities that seek to reduce the ratcheting cost and number of return delivery journeys
are also being established, with models looking to create efficiencies for logistics providers (and particularly for the retailers who foot return costs) through methods such as sequencing returns with the explosion in last-mile deliveries
. Logistics startup Shyp feeds the data from customers flagging return requests through their app into mapping of IoT-tracked delivery vehicle routes being (or soon to be) travelled. UberPool for the last-mile-esque real-time analytics looks to piggyback return requests and flag them for collection by fulfilment journeys stopping at the same address or en route. Economic potential from logistics
All in all, we are likely to see the creation of truly seamless supply chains as standard for most deliveries, with the minimised latency of 5G networks enabling an elegant mechanised trapeze of delivery fulfilment, from the factory floor to port, from hub warehouse to last-mile fulfilment centre to doorstep (or smart key-enabled postbox): guarded and stewarded at each step by automated lorry fleets, automated security processes and, perhaps, even automated drones.
IoT-enabled supply chain efficiencies
Most analysis of 5G’s benefits for logistics will understandably be occupied with the rise of self-driving vehicles once they are a reality. But it would be a mistake to overlook the benefits that the more humdrum IoT sensor-enabled gains for the supply chain network will provide – as well as the various step-change gains for the sector along the way to full vehicle automation.
FUTURE-GAZING THE AUTOMATED SUPPLY CHAIN
He points to the Department of Transport already testing connected roads along the A2/M2 corridor, which is studying what kind of information needs to be piped from roadway to vehicles, and what kind of capacity that needs. However, the infrastructure, and whether it will ultimately be Government or private telecoms providers taking the lead in installing it, is still some way from being decided on.
Overseas examples demonstrate a mix of public and private initiative in establishing 5G smart road networks. In Finland, for example, homegrown household name Nokia has taken the lead in establishing prototype networks in rural areas and testbed smart cities, while the government has taken the lead in Switzerland’s urban-focused 5G network, launched in May this year, and in China which is set to roll out functioning smart highways early next decade. An outline idea of when smart road networks are likely to be standard is at least given by the European Union’s 5G Action Plan for Europe, which aims to have all major road networks in member states covered by 2025.
Regardless of who eventually takes the lead in developing the necessary networking kit, rich pickings await for logistics providers. Opportunities lie in the operational overhead cost reductions that come from removing the human limitations on their supply chain operations.
DHL research
into the impact self-driving vehicles will have on logistics quoted estimates of cost reductions of up to 40 percent per kilometer from freight journeys no longer being constricted by driver fatigue.
Additionally, the smarter operation of driverless vehicles, operationally optimised to avoid unnecessary engine running times while in traffic and to plan routes avoiding it altogether, meaning that autonomous trucks are estimated to be able to deliver average fuel efficiencies and cost reductions of 15 percent.While drones may seem far-fetched, being able to quickly transport medical supplies cheaply and automatically in a grid-locked city, or to reach more rural communities, could be essential.
Amazon has been leading the way on drone delivery research over the last few years, establishing proof of concept in delivery reliability and range trialing drones in the US, UK, Canada and the Netherlands. Figures released by Amazon have established drone capabilities of 15 mile delivery ranges, carrying loads weighing up to 5 pounds at an altitude of between 200 and 400ft.
Once 5G becomes widespread, allowing remote drone operation with fast enough connections to allow for critical reactions, precise navigation and safety, drone deliveries could see same-day fulfilment fall to as little as 30 minutes. Should sky taxis ‘take off’ as a transport solution, the skyport network infrastructure that would need to be in place to facilitate that, and potential customer hunger for the efficiency of ‘next-hour’ drone deliveries, could see skyports and sky taxi fulfilment become the next decade’s delivery frontier.
Smart motorways
A complementary progression for optimised supply chains is the development of smart roads and motorways, and the other infrastructure that connects up the UK. This will be critical for ensuring connectivity for autonomous vehicles, but it has brought its own issues in terms of cost and providing connectivity all along the motorway network. Simply: it is more efficient economically to provide infrastructure in urban locations.
However, enabling the self-driving society will require a wholesale effort to install a comprehensive nationwide network of roadside 5G infrastructure, with millions of small cells tens of metres apart each providing limited but reliable coverage to chain a seamless pathway of connectivity, supporting the vast data needs of each autonomous vehicle to compute in real-time its position in relation to the other vehicles, objects, signs and markings in its surroundings, allowing it to maintain cruising speed and avoid accidents.
Tony Gosling, Chief Digital Officer at Pell Frischmann is helping with the design and roll out of smart motorways in the UK.
Drone delivery fulfilment
While the shipping and logistics sectors could see fleets of linked vehicles, swarms of airborne drones (a favourite of the media) could be sent on more remote or time critical routes.
“The technology for autonomous vehicles is coming along fast. While there are a whole bunch of issues about doing it in practice, in principle a Tesla today can drive itself down the street.”
Source: Dept for Transport, Technology and RIS2
WHO IS ALREADY OUT THERE?
Oden is an industrial automation company, providing software and sensors that give complete visibility into all production processes in real time. It combines industrial hardware, wireless connectivity and big data architecture into a unified dashboard for clients to see. Oden will shake up the industrial market, by reducing raw material waste and increasing production uptime through analysing physical and data efficiency. 5G will enable real-time analysis and insights into improvements, saving further costs.
AiBuild
AiBuild provides AI and robotic technologies for large-scale additive manufacturing. They focus on autonomous 3D printing, which uses designs uploaded online that an advanced AI robot can build at a faster speed than traditional methods, while also providing insights into the production quality and performance of the designs. This has big implications for the industrial sector, as this form of manufacturing greatly reduces costs, waste and production speed. The rollout of 5G will provide the data capacity that will allow more manufacturers to use this technology; but pivotally, this technology will also expedite the rollout of 5G, which requires telecommunication components that are expensive and complicated to fabricate. 3D printing technology like AiBuild will work in a symbiotic relationship with 5G to advance the future of manufacturing.
Flirtey
Flirtey provides remote drone deliveries that allow commercial partners and ambulance services to deliver products, often to remote locations. This technology will transform the future of delivery services altogether by cutting fuel and labour costs, increasing customer satisfaction and reducing environmental impacts. 5G will make pilot-drone connections stronger and more reliable across long distances, enabling greater pilot reactivity.
Oden
Commonsense Robotics
Commonsense Robotics develops and operates automated logistics centres in urban spaces. The startup is focused on enabling online order deliveries in under an hour for grocery retailers, using hundreds of small AI robots in their network of automated last-mile fulfilment centres. This tech shakes up the industrial and retail sectors by massively improving the efficiency of online deliveries through 5G-enabled granular automation.
- Anticipated large-scalejob losses in the haulier sector thanks to autonomous vehicles. Low-end projections estimate1.7 millionjobs will be lost from 2.5 million inUK haulage and logistics.
- Manufacturers may struggleto justify the high capital outlay of 5G infrastructure, as it is uncommon for R&D expenditure in sector to cover connectivity infrastructure. Many firms in the sector could become laggards.
CHALLENGES
INSIGHT
SAVARI
1.
Can you describe what Savari does? A
.
“Savari is a 360 degrees software supplier for the automotive industry. We do that by bringing the information from infrastructure, other cars and pedestrians into the vehicle. One of the things we have recognised that many technology suppliers in smart cities are systems integrators. We focus on data exchange and data research” 2.
How is 5G going to affect cities?A
.
“It is clear that wireless infrastructure assets need to be shared between cities and mobile operators. It is becoming apparent Cellular V2X is making a key impact in forging these partnerships. AT&T, Verizon has taken aggressive steps to address the same issue.”3.
What vehicles do you focus on supporting software to? A
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“We supply software for any type of car. The only condition we have is that the car needs to have a certain level of connectivity. As long as we can connect to their vehicle, we can provide our technology to them. Our software can run in the car, as well as in the Cloud. Essentially, it is a data exchange between cars. You can use the data exchange directly or use the Cloud as a gateway so that the data exchange can happen seamlessly.“4.
How does Savari currently use 4G?A
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“Today we leverage any 4G infrastructures from the car to the Cloud to make sure that any vehicle can exchange data. We achieve this by standardising what data is being sent from the vehicle.”Ravi Puvvala,
Founder and CEO, a creator of software and hardware sensor solutions for OEM car manufacturers, cellular infrastructure, smart cities, and pedestrians
Talks about whether 5G will be a game changer or just a gradual evolution.
Interview
5.
How will Savari use 5G, and how will it affect your product? A
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“Today’s 4G network is good enough for notification messages on mobility. When we see the road is in a slippery condition, a lot of the vehicles can detect that information and notify another vehicle that is going to pass through that same zone.
“4G’s network is extremely relevant in order to geotag any known events that need to be relayed to other vehicles. When it comes to safety we definitely require lower latencies and better infrastructure, and that is where V2X integrated with 4G/5G is coming into play.”6.
How will 5G change what Savari’s software can do?A
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“Our company focuses on data exchange. We look at two key attributes: low latency and high bandwidth. The low latency allows us to build data analytics and safety applications. High bandwidth allows us to exchange more sensor data information between vehicles.
“We are also looking at 5G V2X to provide key applications like remote-operated driving and real-time emergency alerts as a mechanism to increase the proliferation of cellular network integration with vehicles.”7.
How could it potentially add new areas of expansion?A
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“5G is both a marketing and technical tool. From a business perspective we will focus a lot of aspects of 5G features inside the 4G network and that’s pretty helpful for us.
“We are quite excited about the upcoming trends, and how fast the network rollout is going to happen. This is the reason why we are one of the first software companies that has actually become a member of the 5G automotive association, which is making a lot of progress in terms of defining the use cases of how 5G is going to help the automotive industry.”8.
What do you want to see coming out of 5G?A
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Faster rollout of 5G infrastructure will be very helpful for the automotive industry. Every car is offloading terabytes of data, and we need this type of network to acquire data from the car to the infrastructure in a more efficient way.9.
How difficult do you think the rollout of 5G is going to be?A
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My understanding is that it is not difficult, because a lot of the 5G rollout is going to be a software upgrade. Many big operators in North America are focusing on deployment in the medium metropolitan cities. I think 2019 and 2020 will see the rollout of 5G in major cities. In the years after that you will see 5G penetrate the rest of the country.10.
What are your concerns from the rollout of 5G?A
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Speaking as a consumer, I am happy right now with 4G in terms of speed and what I am able to get for what I am trying to do. I think that 5G is more focused towards industrial customers, and I am more concerned about the scalability of the business models for automotive in 5G.11.
What is the coolest new technology you have seen coming out of 5G? A
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There are many applications - when I was at the Mobile World Congress in Barcelona there was someone who was demonstrating remote surgery, so a doctor can perform surgery through the Cloud using a 5G connection. They could get high definition video and it is as good as someone actually being in the room. There are a lot of very specific applications that are being demonstrated.
However, in terms of something being more practical and needed, the most exciting part for me is the human driving the vehicle behind the 5G Cloud. In the next generation of robo-taxis, humans can operate them and control the cab from a call-centre. Close