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Achieving ROI in an intelligent supply chain: It’s all about the network

In a recent report issued by PriceWaterhouseCoopers (PwC), the digital transformation of manufacturing and supply-chain related industries is in full swing. PwC noted that half of the enterprises they surveyed have already adopted IoT, cloud-based data platforms, and connected services to support their operations. The report also pointed out that while only 24 percent of these respondents have invested in Artificial Intelligence (AI) and Machine Learning (ML) applications thus far, the overwhelming majority—73 percent—indicate they will make sizable investments in AI, ML, Robotics, and AR/VR/XR solutions to bolster productivity, elevate efficiencies out of their operations, and reduce costs.

Clearly, this concept of the intelligent supply chain is gaining tremendous momentum, and with it comes an entire set of challenges that businesses need to address to maximize the return on these sizable investments. The fundamental enabler for  these technologies is the communications infrastructure that transports the enormous swaths of data generated and used to deliver the benefits within the supply chain. The next generation of warehouses, factories, manufacturing plants, and other facilities are beholden to the fast and efficient processing of data. A network not up to the task can quickly hinder performance, resulting in inefficiencies and mediocre-to-no impact on operations as envisioned at the time of investments. 

Businesses that have already, or will soon, invest in intelligent supply chain systems should consider Private Cellular Networks (PCN) as the prerequisite infrastructure by many Industry 4.0 experts. In terms of reliability, security, and cost efficiencies, PCN solutions are proving superior to other infrastructure options, and can deliver a tangible ROI that is significantly faster than other network technologies.  

Consistent Coverage 

The most basic requirement for supporting an intelligent supply chain deployment is seamless, reliable, and secure coverage within the facility. For years, managers relied on Wi-Fi to support all communications traffic, which made sense, because at the time it was the best available infrastructure. Wi-Fi is great for office environments and connecting stationary laptops and printers, but for industrial needs, it struggles to keep up. Any environment that comprises metal structures—like shelving, racks, and other equipment in warehouses and factories—has its unique challenges with signals and radio frequencies. Maintaining consistent coverage with Wi-Fi becomes impossible. Radio interference and propagation issues are commonplace, resulting coverage gaps. This causes havoc with autonomous vehicles that are becoming popular in warehouses, and with automated machinery that is gaining traction with manufacturing plants. Any loss of signal can result in dangerous situations, with forklifts and other equipment stopping right in their tracks, shutting down production, and even placing personnel in harm’s way. 

Cellular technology provides seamless connectivity in these installations. Cellular signals can navigate such environments significantly better than Wi-Fi, leading to better coverage. The  cellular network is equally efficient by supporting both upstream and downstream traffic, ensuring that essential data gets where it needs to go, and that production keeps humming along. 

In addition to its superior coverage, private cellular networks are far more secure, and not nearly as susceptible to hacking or other attacks. This is critical for any business that is responsible for ensuring data security within their operation. 

Cost Factors

From a cost perspective, Private Cellular Networks consistently demonstrate a better ROI. Just in terms of deployment, one private cellular antenna can cover as much ground as four Wi-Fi access points in indoor venues. Outdoors, the savings are more than twice that, since it would take no less than 10 access points to match a single private cellular antenna. 

But those figures are only the beginning. Any enterprise that wants to rely on Wi-Fi would need serious capital and time to extend their network. Expanding these infrastructures usually requires bringing fiber to the site, which can in turn result in trenching and laying cable, depending on the facility. In contrast, PCNs can be scaled up by using cellular mesh technology, which is done by simply setting up another antenna with a power source. This task can be completed in as little as an hour, and cost just a fraction of what a Wi-Fi extension can run.     

Conclusion

The intelligent supply chain is transforming warehouses, logistics companies, manufacturers, and other industrial operations. These businesses are eager to integrate automated tools to increase efficiency and squeeze out costs, but unless they are using the right infrastructure, these investments can be all for naught. 

Private cellular technology is ideally suited to satisfy the unique needs of intelligent supply chain installations. From the standpoint of performance, security, and cost, private cellular far exceeds the performance limitations of other network infrastructures, while also delivering the flexibility and cost efficiencies that businesses demand.  

To learn more about GXC’s Private Cellular Networks, please visit https://www.gxc.io.
 

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