Benefits of 5g technology in logistics

The digital India transformation has achieved yet another milestone in October 2022 with the launch of 5G technology in India. With this launch, India has joined the elite club of over 70 countries that are ready to leverage the power of 5G technology for transforming lives.

From healthcare to education and logistics, 5G is impacting various industries positively. Businesses are looking forward to incorporating 5G in their ventures for achieving better results. Experts say that 5G can play a vital role in increasing productivity, reducing costs and improving overall business operational efficiency and can enhance overall business profitability, too.

But how will 5G technology impact supply chain management? Will it revolutionize the logistics industry as it is being predicted? Read on to know more.

What is 5G?

5G refers to fifth-generation wireless technology. It's synonymous with increased speed, reduced latency and better connectivity. As per scientific research, the data download rate of 5G is 10 GBPS, which is 100 times faster than 4G. Moreover, 5G also has the advantage of large capacity, and higher bandwidth, which allows better use of resources for businesses.

Impact of 5G for logistics

5G will impact the logistics at various important levels and improve productivity expeditiously.

Increased supply chain visibility

Lack of supply chain visibility is the major challenge in supply chain management. As per, only 13% of business firms have fully mapped supply chain networks. Reduced or zero visibility causes delays in deliveries, which leads to an increase in cost and results in customer dissatisfaction.

To overcome this major challenge, 5G plays a vital role. By attaching low-cost asset trackers, you can easily access the location and condition of goods in real time and help businesses to take data-driven decisions according to existing conditions. Moreover, 5G also enables the early detection of potential problems before complications arise and helps businesses to solve them ahead of time.

Make transportation more efficient

Poor connectivity is one of the major issues in transporting goods from one point to another. Especially in rural areas and high-traffic areas, lost signals and poor coverage cause delayed transportation and impact productivity negatively. Here, 5G comes into action. 5G improves fleet management. The use of telematics and IoT devices reduces transportation time and increases transportation efficiency. Furthermore, 5G also helps in increasing the number of autonomous drones and autonomous vehicles (trucks) for the delivery of goods and solving various common transporting issues of businesses in real-time. 5G also increases connectivity and communication between manufacturers, retailers and drivers and allows them to coordinate better for improving transportation activities.

5g also provides route optimization. By providing the most efficient travelling route, it not only reduces travel time but also lessens fuel expenses.

Smart inventory (warehouse) management

Warehouse management is another important aspect of business management. And many businesses face various challenges like poor quality control or slow administrative process in executing smart inventory management.

5G can offer great help in smart inventory management. Autonomous drone-based inventory reduces the need for manual interventions drastically and enhances worker safety. Live video streaming and interconnected devices provide real data updates to all team members, including remote ones, and help them make the best decisions in real time. Moreover, 5G also allows the automatic upload and unloading of goods and improves the internal operational efficiency of warehouse management.

With the help of 5G technology, employees can keep a precise watch on overall inventory management and can take appropriate decisions for managing stock and solving potential problems ahead of time.

Improve last-mile delivery

Since the time of the pandemic, there is a huge surge in e-commerce businesses. Nowadays, consumers opt for online shopping options and want their goods delivered at the earliest possible time. Considering this aspect, last-mile delivery has become an integral part of successful supply chain management.

To achieve this goal, 5G can offer great help. 5G enabled autonomous drone delivery or use of robots which help in delivering essential products like medications to areas with poor accessibility, improves last-mile delivery. 5G technology also helps in dealing with various challenges of last-mile delivery efficiently and reduces the overall cost of last-mile delivery too

Enhance customer satisfaction

Finally, 5G helps in enhancing customer satisfaction by improving supply chain management at various levels. Customers get a more personalized experience with 5G technology. On one side, high-definition video content and live video streaming help businesses take well-informed decisions, while on the other side, improved shipping and faster last-mile delivery help in delivering products on time and in perfect condition. All these aids provide a satisfying shopping experience and enhance overall customer satisfaction.


In conclusion, 5g is a boost for the logistics industry. It minimizes the supply chain loss and improves the productivity and overall efficiency of supply chain management. However, it has its own set of challenges such as the availability of the required network and equipment. If businesses would be able to overcome these challenges in the future effectively, then 5G can be a big game changer for the logistics industry.