Next-Gen Wireless & 5G-IoT

Trend Definition 

What is the essence of this trend? What is its impact? 

• Essence: Next-generation wireless technologies (e.g., Low-power wide-area networks (LPWAN), 5G for IoT) help in dealing with the increasing number of connected devices incorporated in a firm's supply chain activities
• Impact: Next-qen wireless technologies enable real-time tracking of procurement-relevant data from various sources, fast communication, and data-driven decision-making

Trend Drivers 

Why is this trend emerging now? What’s changing? 

• Real-Time Data Management: Advancements in 5G for IoT revolutionise supply chains by enabling high-speed data transfer and allow companies to implement high levels of connectivity and the newest technologies
• Enhanced Supply Chain Resilience: Following the pandemic and geopolitical tensions, there is a heightened focus on resilient supply chains which led to many companies rethinking their current model, also further intensified by governments offering huge incentive packages for localising crucial production sites

Use Cases 

How to apply this trend? 

• Global Coverage of Supply Chains: Universal traceability of supply
  Example: Global Area Networks (GANs), for instance, Starlink, enable end-to-end visibility along the value chain, for instance, to keep track of the status of deliveries in remote areas
• Inventory Management: Leverage increased network speed to optimise operations management
  Example: Walmart utilises 5G and IoT for real-time inventory tracking. This enables them to monitor stock levels accurately across their global stores and helps the procurement teams by increasing transparency

Procurement Relevance & Response Strategies 

How should Procurement adapt its Processes, Organisation, and Strategy?

• Streamline Procurement with Real-Time Data Integration: Selective incorporation of 5G-IoT data streams into the procurement software for instant availability of inventory levels and supply lead times enables more efficient ordering and stock management
• Efficient Supplier Communication: Faster data transmission eases the communication between buyer and supplier, leading to an increase in efficiency and a reduction of costs