CJ Logistics, a global logistics leader, has partnered with Ericsson to deploy the world's first full-scale, commercial private 5G network at Ichiri center in Incheon City, South Korea.
The private 5G network at the Ichiri center has improved receiving, sorting, and categorizing commodities and loading and unloading activities. CJ Logistics chose Ericsson for this transformative endeavor because of its scalability and ease of implementation; helping to manage its 400 storage sites in South Korea and 40 more abroad.
CJ Logistics' Ichiri center productivity has increased 20% since the installation. Enhanced accuracy and real-time connectivity between devices and systems have led to a notable reduction in picking process times, yielding significant improvements. Additionally, the implementation of a private 5G network has minimized manual interventions and optimized workflow processes.
Private 5G Network Benefits
The Ericsson private 5G network enables the high-speed operation of self-controlled vehicles like AGVs (automated guided vehicle) and AMRs (autonomous mobile robots); which reduces collisions and unplanned events, therefore improving workflow and safety.
“Our work with CJ Logistics is a groundbreaking example of the benefits that a private 5G network can bring to a business. With only 22 radio dots installed (compared to 300 Wi-Fi access points), the private 5G network guarantees connectivity; supporting innovative end-to-end solutions for precise material flow, streamlined supply chains, heightened safety measures, cost reduction and sustainable practices,” explained Thomas Norén, Head of Dedicated Networks, Ericsson.
After installing 300 Wi-Fi access points throughout its warehouse, CJ Logistics decided to switch to a private 5G network due to outages and dead zones. Ericsson was chosen for its fast project launches, security, scalability, and cost-efficiency. Ericsson 5G devices had 15% less capital investment than wired equivalents, proving their appropriateness for network power.
Sangcheon Ryu, CIO, CJ Logistics, said, “Connectivity serves as a backbone; enabling seamless communication, data exchange and coordination among various devices, systems and stakeholders involved in complex operations. The ability to utilize dedicated industry spectrum ensures our network's reliability and performance, making private 5G a strategic choice for our organization.”
The logistics business is expected to grow to USD 14.08 trillion by 2028, requiring robust technologies to capitalize. The Ericsson private 5G network allows CJ Logistics to enter Logistics 4.0 seamlessly; handling increased data volumes, adding IoT devices and using AI to boost productivity.
