CJ Logistics sees 20% increase in productivity with industry-first private 5G network

• CJ Logistics partners with Ericsson to implement 5G private network to address dead zones and repeated Wi-Fi outages.
• Private 5G network also reduces capital expenditure by 15 percent and enables CJ Logistics to take advantage of next generation use cases and solutions.
• Reliable, scalable, and secure connectivity instrumental in laying groundwork for the coming boom in the logistics industry

CJ Logistics, a global logistics leader that operates in 36 countries worldwide, has partnered with Ericsson (NASDAQ: ERIC)to deploy the first full-scale commercial private 5G network within the logistics sector at its Ichiri centre in Icheon City,  South Korea.

The new network enables tasks ranging from the intricate choreography of receiving, sorting and categorising goods to the coordination of loading and unloading processes. With 400 warehouse facilities in South Korea alone, as well as 40 more centres globally, scalability and easy deployment were vital factors in choosing the right provider for CJ logistics.

Since the installation, CJ Logistics has achieved a 20 percent productivity increase at the Ichiri centre. The majority of this has come from the ability to reduce the time required for the picking process, where items are taken from shelves and prepared for shipping. Through enhancing precision and enabling real-time communication between devices and systems, the time needed for manual intervention is reduced.

Similarly, by eliminating subnetworks and connecting to a single private 5G network, self-controlled vehicles, such as AGV (automated guided vehicle) and AMR (autonomous mobile robots) fleets, can operate simultaneously at high speeds. This will improve not only workflow but also safety, as vehicle speeds can be increased without the risk of unexpected events that could lead to collisions.

The Ericsson Private 5G Network is future proof, and enables CJ Logistics to push forward with Logistics 4.0 – handling rapidly growing data volumes, introducing more Internet of Things devices, and leveraging AI to make logistics centres even more productive.

The decision to implement a private 5G network in the 40,000 sqm facility was made after CJ Logistics experienced continued connectivity blackouts and dead zones despite installing 300 Wi-Fi access points throughout its warehouse.

Ericsson was selected as the preferred provider for the new private 5G network due to its rapid project launches facilitated by access to an extensive partner network, unwavering commitment to security, scalability, and cost-efficiency. Notably, the implementation of Ericsson 5G products required 15 percent less capital investment compared to the wired alternative, solidifying the company’s suitability to power the network.

With the logistics industry predicted to reach USD 14.08 trillion by 2028, it is vital that firms have the necessary tools to seize this opportunity. Logistics 4.0 calls for mass IoT (Internet of Things) deployments, personal data assistants, scanners and specialised equipment that contribute to better inventory management and enhanced safety. However, none of it is possible without reliable and scalable connectivity.

Ericsson Private 5G is Ericsson’s next-generation private network solution, providing secure and reliable 4G and 5G connectivity through its single server dual mode core. Built for business operations, the product comes pre-integrated to ensure rapid time to service, delivering advanced and intelligent operations in any environment, all while keeping sensitive data secured on site. Ericsson Private 5G is able to support and adapt to a variety of use cases, industries, and levels of complexity for enterprises.

Sangcheon Ryu, CIO, CJ Logistics, says: "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 utilise dedicated industry spectrum ensures our network's reliability and performance, making private 5G a strategic choice for our organisation."

Thomas Norén, Head of Dedicated Networks, Ericsson, says: "Our work with CJ Logistics is a groundbreaking example of the benefits 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."

You can learn more about the private 5G network journey at CJ Logistics here.