Wireless technologies are widely utilised in different areas of supply chain planning and implementation, i.e. logistics, such as distribution and transport, enterprise resource planning and supply chain management, to exchange information, identify goods and freight and monitor transports. Finland is logistically an island and geographically vast, which means that functional logistics chains are essential for us as a country. As regards the communications network sector, the Finnish Transport and Communications Agency Traficom supports and ensures the functioning and usability of the communications systems and frequencies utilised in logistics services as well. Traficom is also responsible for exempting the frequencies of the sensors, RFID tags and IoT devices widely used in logistics from radio licencing in Finland and for related international technical and regulatory cooperation.
In logistics, digitalisation facilitates the development of international supply chains, operational agility, information transparency and the real-time monitoring of deliveries. The guiding values and objectives are environmental friendliness and optimisation of logistics. There are also various challenges associated with the digitalisation of logistics, such as issues related to data quality and availability (in regard to data on the content of containers, for example), and widespread lack of digital freight information, as this information still needs to be provided on paper, with digital waybills only becoming possible in the coming years in the EU. Non-technological challenges include how to justify the benefits of digitalisation to a broad range of operators and finding common operating methods for validating data chains, for example.
Digitalisation and the utilisation of wireless communications networks and wireless solutions play a major role in transport monitoring and the development of logistical hubs, with recent developments including the introduction of second-generation smart tachographs. Other interesting development trends include the utilisation of drones in transport and vehicle platooning.
Transport monitoring to become more real-time in the future
One of the most notable benefits provided by digitalisation in logistics is transport and delivery monitoring. There are already many different applications utilising radio technology available for this. The demand for more real-time monitoring also increases the importance of positioning. In logistics, positioning is carried out either via applications or networks or with the help of satellite positioning.
Radio frequency identification (RFID) is a generic term for technologies utilising radio frequencies that are used to detect, identify and tell apart products and objects. The technology is based on saving data on small RFID tags and reading this data wirelessly with an RFID reader device with the help of radio waves. RFID tags and readers are low-power radio equipment that have been exempt from radio licencing by Traficom.
The internet of things (IoT) enables a wide range of different technologies. When it comes to choosing IoT technologies, it is important to take into account their different operating ranges. Radio equipment based on LoRaWAN and Sigfox technologies use radio frequencies reserved for devices exempt from radio licencing. These IoT network technologies and devices have been optimised for low-power, long-range applications. For local applications, such as indoor facilities, there are also WLAN and Bluetooth devices exempt from licencing available.
Mobile networks also offer many features that support the internet of things and thus logistics services as well. Second, third and fourth generation mobile networks offer near nation-wide coverage. Narrowband-IoT (NB-IoT) technology supports low data speeds (under 200 kbit/s) and offers years of battery life for devices. LTE-M technology supports higher data speeds (up to 1 Mbit/s) and is better suited for mobile use, but at the cost of higher power consumption. 5G technology can support a very large number of devices in a small geographical area. In the future, 5G technology may also enable the development of IoT devices offering ultra-reliable, short-latency connectivity.
The IoT applications enabled by satellite communication also play an important role in global transport monitoring. Satellite communication works even where the services of terrestrial networks do not reach, making it ideal for open seas and air transport, in particular. Satellite communication is expected to develop by leaps and bounds over the next decade, which may change its role as a communication solution.
Ports, airports and logistics hubs utilise new types of data platforms
In addition to facilitating transport monitoring, the digitalisation of logistics makes it possible to significantly improve the operating efficiency of logistics hubs through the utilisation of wireless communications networks. Ports, airports and logistics hubs are multi-operator environments in which new types of data platforms and wireless solutions can be utilised to share information, functions and situational awareness. Ultimately, the aim is to improve efficiency and streamline operations through the utilisation of real-time data and to improve security and environmental friendliness.
In these environments, development measures often also include the establishment of a local 4G/5G network or the improvement of existing WLAN networks. In many cases, these measures are also aimed at developing area surveillance and traffic control, optimising the use of facilities and supporting automated traffic. The utilisation of real-time video surveillance, video analysis and IoT applications is expected to increase in these operations in the future.
5G technology is a significant driver in the logistics sector
Fifth generation (5G) mobile networks offer comprehensive, high-performance wireless connectivity for various applications in the area of logistics services as well. 5G technology together with the internet of things and the mass data and artificial intelligence that it enables are the drivers and accelerators of the digitalisation of industrial and service sectors, including logistics.
Along with transport and logistics, other key sectors of society that benefit from 5G technology include manufacturing and energy; health care and well-being; cities and municipalities; and media and entertainment. The aim is to use 5G technology to create a telecommunications platform that will meet the future needs and objectives of these sectors. In logistics, 5G networks and various types of wireless vehicles or road sensors can provide real-time data on things such as traffic congestion and conditions in different stages of transports, including road slipperiness and accidents. As the digitalisation of transport progresses, vehicles will eventually become able to report their own location and collect data on conditions collectively, for example. This data can then be utilised in logistics services to predict congestion, optimise driving routes and collect data on driving conditions. The data can also be shared with other road users either directly or via various services.
Local mobile networks are important and topical in the logistics sector as well, especially at ports, airports and major logistics hubs, as they can be used to optimise network functions for specific needs. Dedicated closed networks provide reliability and information security for operators and also make it possible to flexibly and quickly adapt online services for one’s own needs. Traficom has ensured the availability of frequencies suitable for operating local mobile networks. The regulation of local mobile networks has also been developed with the aim of allowing us to agilely issue radio licences for mobile networks to other actors besides telecommunications operators as well.
Overall, the development of smart mobility and the digitalisation of transport will have a significant impact on the logistics sector as well. As the range of real-time status data that can be collected via wireless communications networks increases, the operation of logistics chains can be more comprehensively optimised through the utilisation of data, improving not only their efficiency but their environmental friendliness as well. We will be exploring the digitalisation of transport and smart mobility in greater detail in an upcoming part of the publication series focusing on transport services.
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