Five key trends shaping 5G investments in warehouses

What do warehouses need to become more efficient, productive and automated?

2024 market study points to private 5G connectivity as a key to keeping busy warehouses and distribution centers productive, competitive and resilient

As the backbone of today’s E-commerce and retail supply chains, the smart warehouse sector is experiencing rapid growth. With this expansion comes operational, logistical and technological challenges that must be addressed to unlock increased efficiency, productivity and service quality for end customers. To understand this sector’s transformation, Ericsson and Verizon commissioned INCISIV to conduct a groundbreaking research study on distribution centers ranging in size from USD 100 million to 5 billion. The study surveyed 134 warehouse executives who identified innovations, such as Artificial Intelligence (AI), automation and robotics as essential for upgrading their operations. Along with neutral host networks, reliable 5G wireless networks ensure seamless connectivity, digitalization and transformation across the warehouse. 5G is also the key to supporting the advanced, automated and data-driven solutions warehouses need to drive greater efficiency and productivity.

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What do warehouses need to become more efficient, productive and automated?

01. Optimizing indoor connectivity for greater productivity

Inadequate connectivity in and around warehouses can severely impact real-time operations like robotics, inventory management, order processing, and communication between automated systems and personnel. But 61% of the warehouse and distribution center executives surveyed expressed dissatisfaction with their overall network performance:

Warehouse executives report:

02. Growing need to automate today’s fulfillment center

In the next 24 months, executives at smart warehouses and distribution centers expect to see increased automation levels across all facets of their operations, including a 1.7x increase in the number of tasks requiring automation.

54 %

of all warehouse/DC tasks will have some level of automation over the next 24 months. Up from current level of 31%

03. Challenges in workforce management

Warehouses and distribution centers are increasingly turning to automation to solve workforce management challenges, such as recruiting, training and retaining skilled workers. Automation mitigates these issues while positioning companies for greater competitiveness and resilience.

Difficulty in managing the workforce

04. Investing in advanced technology is imperative

The desire to automate manual, repetitive and labor-intensive tasks prompts many smart warehouses and distribution centers to deploy innovative, advanced technologies, such as Artificial Intelligence (AI), automation and robotics, that can speed up fulfillment with precision.

25 %

of executives plan to invest in robotics for picking and packing within the next 2 years.

65 %

of companies say their current network cannot support their needs over the next 24 months

05. Increasing throughout cost-effectively

Reliable private 5G network connectivity is the key to supporting higher productivity and throughput levels that meet customer expectations. Reliable connectivity is essential to supporting the automation, technology and infrastructure improvements that promote growth while managing operating costs

78 %

of companies rate managing operational costs as a top investment driver

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