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When 5G technology is transforming the world of "logistics"

24 Jan, 2022
The world is moving toward a fully digital age, and new technologies are playing a huge role in consumer behavior. This is also the case with Thailand which is the first nation in ASEAN that will use 5G Technology for commerce on a full scale in an attempt to drive the country towards Thailand 4.0.

The emergence of 5G technology has enabled an extremely high speed of data transmission in gigabits per second (Gbps), contributing to massive amounts of data transmission. It can connect to many smart devices via the Internet of Things (IoT) in the same area. The data transmitted is stable and has a low latency of only 1 millisecond (ms). These are just some of the distinguishing features of 5G technology.


5G technology not only connects the world through communication, but it also makes accessing information more efficient as well as raising the standard of the industry, finance, agriculture, logistics, and e-commerce by creating added value and new opportunities for businesses.

In the industrial sector, 5G technology has been adopted at a swift rate in response to the Thailand 4.0 policy to unlock the Thai manufacturing sector's capacity. It is being used with an aim to shift the industrial sector to transform into smart factories, automated production systems, industrial internet of things, (IIoT), increasing product value, inventory monitoring, reducing the production cost, and heightening productivity among other aspects to create more excellent business results.

Amidst the changing modern trade paradigm, E-commerce business (E-Commerce) is growing at lightning-fast speed.
The Electronic Transactions Development Agency (ETDA) estimated that the 2021 value of e-commerce in Thailand will grow to 4.01 trillion baht from 2020 which had a value of 3.78 trillion baht. The average growth (CAGR) of the past 5 years is 9.79%, while Kiatnakin Phatra Financial Group estimated that B2C e-commerce will have a market value of 750 billion baht in 5 years from 300 billion baht, which is a huge pool of opportunities for entrepreneurs. The fervor of e-commerce business has impacted the growth of the logistics industry which is the backbone as well. Logistics is not just connecting the entire supply chain from procuring raw materials upstream to the production of end products to reach the target consumers (Last-Mile), because if managed effectively it can help the businesses gain more profits.

5G technology strengthens logistics business.
In order not to miss this golden opportunity, trade operators can use 5G technology to strengthen many aspects of their logistics. For example, from tracking the production process in real-time so they can immediately detect and fix if any complications occur, using virtual reality technology combined with the real-world data to take care of the product search, up to picking products from the shelves to help take care of efficient product orders.

In addition, connecting smart devices such as vehicles with GPS to track the location of the vehicles (fleet management) can help monitor the exact status of delivery. It is undeniable that 5G technology is changing the world of logistics and strengthening businesses at the same time. As for e-commerce stores, 5G will enable virtual stores to create a seamless shopping experience for customers by connecting the sales system of all branches in real-time.

There are several case studies of Thai business giants that have already adopted 5G technology. One of them includes Saha Group, a conglomerate that manufactures many categories of consumer products, who operates over a hundred factories with 5G technology for production control. Another example is Central Retail, which is transforming customers' shopping experience by using 5G technology to enhance data aggregation, improving smart logistics and smart payment. Yet another example is WHA Corporation who transforms industrial estate infrastructure into Smart Eco-Industrial Estate, Smart Factory, and Smart energy.