How Connectivity and Automation Can Revolutionize Smart Logistics

Our appetite for internet shopping, which spiked during the pandemic, shows no signs of abating. Globally, e-commerce sales are expected to grow 8.8% in 2024, and by 2027, 23% of global retail purchases are expected to occur online. During the first three months of this year in the U.S., 22% of all sales took place online, the third highest quarter since e-commerce tracking began.

As shipping times have reduced, expectations for faster delivery have increased. As a result, almost a quarter of online shopping sessions end abruptly because the promised shipping time is too slow. Retailers such as Amazon.com, which accounts for more than a third of all e-commerce sales (37.6%), know this only too well, and in response are rapidly changing logistics models. 

Today, micro-fulfillment centers (MFCs) are springing up in towns and cities, repurposing former retail spaces while new greenfield warehouses are also being built to expand their reach. Located closer to consumers, these spaces are using automated guided vehicles (AGVs), autonomous mobile robots (AMRs), drones and advanced software systems to expedite picking, packing and shipping; more accurately manage order processing, and contribute to faster delivery times. They also integrate with other channels, allowing businesses to offer click-and-collect and other types of fulfillment services.

As these MFCs continue to implement a mixture of systems and services to perform the last mile of the fulfillment process, a lack of reliable connectivity could hinder their performance.

Overcoming the Connectivity Challenge

Floor-to-ceiling metal racks and stacks of pallets and products can create challenges for some connectivity technologies, including Wi-Fi. Automated robots and drones accelerate the picking, packing and delivery process and can enhance worker safety, meaning people no longer need to work at dangerous heights or in cramped spaces to access stock. But gaps in coverage or delays in handover between access points can cause a disconnect, requiring a dangerous and time-consuming manual reboot.

The good news is that as logistics models have changed, so have communication technologies. Now, 4G and 5G private wireless networks are delivering reliable connectivity and coverage across these metal-stacked environments.

Not all wireless network platforms are created equal, however. To support growing automation and other logistics use cases at MFCs, companies must be able to process data in real time, and enable workers and assets to access the applications that make sense for their business model. To do this, they need an ecosystem-neutral private wireless connectivity platform.

Supporting Smart Logistics Use Cases

With the right technology mix in place, logistics companies can take advantage of a host of new digital services to support their operations.

Worker connectivity and safety are enhanced when workers are equipped with the right devices over a reliable connectivity platform. Order fulfillment can be streamlined using pick-to-light systems, or workers can be equipped with multimodal devices that integrate scanning functionality alongside push-to-talk applications that allow for the sharing of voice, video and data. Connected personal protective equipment (PPE) and geo-location data that warns of hazards will enhance safety, as will digital content including videos and data that streamline on-the-job training over those devices.

Optimized Operations

To maximize time and cost efficiency, logistics companies want their workers and fleets of connected AGVs and AMRs to take the shortest and safest routes through the MFC. Private wireless enables seamless handover of robots between radios across the floor, reducing the need for manual reboots, while geo-positioning data can be employed to plot worker and AGV/AMR routes for the greatest efficiency and safety, and reroute them if asset locations and floor plans change.

By implementing network digital twin software where delays may occur, logistic companies can optimize layouts, storage and workflows to better organize racks and enable more efficient order fulfillment.

Machine-related digital twin software can also track the health of connected assets. By accessing real-time data from robotic arms, conveyor systems and AGVs and AMRs, companies can use system data thresholds to alert maintenance teams to potential failures.

Logistics companies can also draw on applications that use geo-location data to more accurately track assets and workers across the MFC. Used together with integrated system data from scanners and other logged information, they can more quickly locate misplaced assets and reduce the risk and cost of theft.

As logistics companies continue to transform the fulfillment model, they will be well-served using an edge digitization platform that runs 4G or 5G private wireless applications. Regardless of their size, companies can benefit from increased automation, improved worker safety, enhanced connectivity, and the flexibility to adapt workflows, processes and layouts. This enables them to meet growing and evolving consumer expectations well into the future.

David de Lancellotti is vice president, CNS Enterprise Campus Edge Sales at Nokia.