How private cellular networks can improve coverage, security and reliability

As Canadian organizations look to future-proof their supply chains, many are integrating the principles of Industry 4.0 into their operations. This transformation is giving rise to Logistics 4.0—a digital framework that fundamentally relies on connectivity to support automation, Internet of Things (IoT) applications and enhanced data collection in warehouses and supply yards.

A significant catalyst for this push toward digital transformation is the remarkable rise in e-commerce. According to the International Trade Administration, 78 per cent of the Canadian population is expected to shop online by 2025. To accommodate consumer demands, supply chains are expanding with more—and larger—warehouses and supply yards. However, like many other sectors, the logistics industry is grappling with labour shortages.

Against this backdrop, logistics organizations are focusing on streamlining workflows through Logistics 4.0. Digitally connecting warehouses enhances efficiency, productivity and safety. Key tools enabling this connection include IoT sensors for predictive maintenance, scanners for inventory management, drones for monitoring stock and employee safety and machine vision cameras for quality control and collision avoidance.

The importance of a resilient mobile network

A robust mobile network forms the backbone of this digital connection, linking all devices utilized by employees to boost productivity and safety. However, many warehouses rely on Wi-Fi as their primary network option, which often fails to meet the demands of their dynamic environments.

An alternative solution is the implementation of private cellular networks (PCNs). These dedicated networks blend the control and fixed costs of a private network with the flexibility, security and macro-network advantages of cellular technology, positioning them as ideal for leveraging Logistics 4.0.

Addressing unique challenges

Warehouses and outdoor storage yards face distinct challenges that necessitate an always-on network. They generally require wide-area coverage—both indoors and outdoors—and support for multiple asset management applications and devices. Using a Wi-Fi network in these scenarios can lead to unreliable connectivity, often halting operations and frustrating employees. Expanding Wi-Fi networks may also present limitations and interference due to the design of warehouses or yards.

In warehousing operations, various mobile devices—such as smartphones, tablets and handheld scanners—are employed for real-time data sharing. However, Wi-Fi’s connectivity issues can result in frequent disconnections as devices move between access points.

Network security is another critical consideration. Warehousing and logistics organizations often handle valuable assets, and some operations, particularly in retail, may store customer data. Industrial networks, alongside the sheer volume of devices, can create blind spots that malicious actors might exploit, leading to denial-of-service attacks and ransomware incidents.

Disruptions in network connectivity can result in customer dissatisfaction, misplaced assets and lost revenue.

The benefits of PCNs

Compared to Wi-Fi, PCNs offer four main advantages for warehousing and logistics operations:

1. Coverage: PCNs provide enhanced coverage and flexibility. A single private network can support all business-critical connectivity needs for both warehouses and outdoor storage yards. For instance, a Wi-Fi network may require three to five times more access points than a PCN to cover the same area due to the lower noise floor and higher-powered radios utilized by private networks.

2. Security: In an environment where cyberattacks can lead to costly downtime, PCNs enhance security through robust encryption measures founded in larger mobile network operation standards. Each device accessing a PCN requires an authorized subscriber identity module (SIM) card, ensuring a higher level of protection.

3. Mobility: PCNs are deterministic, providing more reliable device handoffs compared to Wi-Fi. This consistency in coverage is crucial for tracking assets, such as raw materials, as they move in, through and out of the warehouse. Organizations can manage device connections via central network control, optimizing signal strength in real-time.

4. Reliability: The combination of coverage, security and mobility makes PCNs the most reliable choice for warehouses. This reliability translates into fewer workflow interruptions, reduced downtime, timely deliveries and improved profitability.

To navigate the growing dependencies on e-commerce, every stage of an organization’s supply chain must mitigate disruptions and meet escalating expectations.

Today’s supply chains must be “always on,” and achieving this necessitates warehouse network solutions that are equally reliable. Private networks provide the mobility, security, reliability and coverage necessary to build a robust foundation for enterprise supply chains, enabling them to adapt to evolving consumer demands and prepare for future challenges.