Private 5G in Warehousing: JD Logistics and Huawei Powering Smart Logistics
JD.com, the mega China-based online retailer, has been running at least 100 “self-developed” automated guided (or “ground”) vehicles (AGVs) over a private 5G network, apparently from local vendors Huawei and ZTE, to automate certain pick-and-pack supply chain operations at its busiest warehouse complex. JD Logistics, its warehousing and fulfilment business, has been managing the private 5G network at a distribution centre in Changsha, in the Hunan province in southern China, billed as the company’s busiest logistics park (called “Changsha Asia No.1”) in the region. It called it an “industry-first” in a press note, of a “scaled commercial deployment of [a] private 5G smart warehouse with [support for] 100-plus AGVs”.
JD Logistics and the 618 Grand Promotion
The 618 Grand Promotion (“618”) is a big mid-year shopping promotion in China, working like a stretched Black Friday sale. The 2022 sale saw 110,000 shopping items processed by 5G-connected AGVs during a peak 24-hour sales period. 5G is the “backbone” platform for AI and IoT based supply chain solutions, and a way to negate high costs, low efficiency, and low digitization to make the world’s biggest logistics economy tick faster.
Regarding technical performance, AGVs connected to private 5G were able to maintain close to zero packet loss, with connection timeout number dropping by 70 percent compared to Wi-Fi. A spokesperson for the JD Logistics distribution centre said: “JD’s AGVs have helped increase the moving efficiency of the park by 200 percent. Private 5G is able to provide AGVs with stable and low-latency wireless connectivity, which [has] resolved the previous issue of AGV heartbeat abnormality due to higher latency with unpredictable fluctuation [from] Wi-Fi.”
Comparison of 5G Performance in Logistics
The following data highlights the performance improvements achieved through the implementation of private 5G networks in smart warehousing:
| Metric | Performance Impact |
|---|---|
| Moving Efficiency | Increased by 200% |
| Connection Timeout | Dropped by 70% |
| Packet Loss | Close to zero |
| Order Processing Efficiency (Indonesia) | Improved by 25% |
| 5G BTS Power Consumption | 5W (equivalent to one light bulb) |
Expansion in Indonesia: Telkomsel and Huawei 5G Smart Warehouse
Huawei, in collaboration with Indonesia's state-owned telecommunication provider Telkomsel, launched a 5G smart warehouse, the first of its kind in Indonesia, aiming to support the country's digital transformation. Located at Bekasi regency, West Java province, the warehouse is equipped with large bandwidth and low latency. The warehouse staff can give instructions to automated guided robotic vehicles to transport goods quickly to designated spots.
Warehouse managers can also use digital twins and real-time data analysis to optimize inventory management and prevent stockouts. This technology is considered time-effective and can help improve order processing efficiency by 25 percent. Furthermore, Huawei’s 5G BTS technology, which powers the warehouse, consumes only 5W, offering a sustainable solution for the future.
The Strategic Impact on Industry 4.0
In factories and warehouses all over the world, Automated Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs) are changing the way we manage material flows by performing tasks on their own, enabling smoother and more cost-effective operations. 5G technology steps in, providing the speed, security, and scalability needed to support the future of warehouse operations. JD Logistics is planning to expand the usage of 5G to other relevant use cases such as intelligent material handling and storage, logistics visual monitoring and trace-ability, creating an end-to-end 5G platform to further improve the total management efficiency of industrial parks.
