Private Wireless Networks Should Play a Central Role in Supporting Warehouse Execution Software Challenges

Deployments of private wireless networks (4G/5G) in industrial settings such as manufacturing facilities and warehouses continues to grow, but at a relatively slow pace, and providers are continuing to look for ways to gather momentum. ABI Research estimates that the global market for private wireless networks in warehousing has the potential to grow to US$6 billion by 2030 at a Compound Annual Growth Rate (CAGR) of 89.2%.

It’s not just private network providers that are trying to boost adoption, but also the hardware and software providers with advanced solutions that require the performance and reliability that a private 5G network can provide. As a result, more partnerships between leading warehouse solution providers, including Zebra and Honeywell, with both established (Nokia, Ericsson, and Cisco) and emerging (Firecell) network solution providers are emerging to educate the market and drive adoption into 2025.

ABI Research forecasts that in the logistics sector, 5G private wireless networks have the ability to add US$19 billion in additional productivity globally by 2028. Or in other words, companies could be leaving significant productivity gains on the table if they don’t migrate to 5G.

In comparison to traditional Wi-Fi installations that most organizations are running, private wireless networks can offer:

• Lower latency, even with a higher number of devices and machines connected to the network.
• Stronger connectivity across a wider area, with fewer Access Points (APs) required: In one case, 3 roof-mounted private wireless APs achieved over 95% acceptable coverage across a facility, in the same place that 30 pole-mounted Wi-Fi APs only achieved around a 60% acceptable coverage rate.
• More real-time data transfer enabling better visibility, process orchestration, and data analysis.
• Greater network security by providing stronger device identification and authentication.

As warehouses continue to take on more devices to connect and augment their manual workforce, expand adoption of automated material handling systems, and grow asset tracking capabilities to an increasingly granular level, having a network that can handle this level of connectivity is essential. Private wireless networks are now a foundational layer for industrial facilities to be able to take on advanced systems and reap their full benefits.

Partnerships with well-established warehouse solution providers like Zebra and Honeywell are supporting integration and acting as a way to highlight the technologies’ role in a broader solution stack. But understanding the role that more advanced wireless networks can play in the changing Warehouse Management Software (WMS) space will be key to unlocking the most opportunity.

For a long time, WMSs only had to monitor inventory and orchestrate standard picking tasks for a manual workforce. Systems are typically on-premises, running very set processes, and transferring minimal data across adjacent functions (Enterprise Resource Planning (ERP), Transportation Management System (TMS), etc.). This is now changing significantly, with two big trends at play.

The first being the increasing need for execution and control capabilities that encompass both manual and automated workflows. More and more Warehouse Execution Systems (WESs) and Warehouse Control Systems (WCSs) have entered the market, as add-ons provided by WMS providers; as standalone “layers” provided by companies like LogistiVIEW and Lucas Systems; or packaged alongside an automated system by the automation provider. The result can be a complex mix of systems needing connection to both the processes they are orchestrating and each other. Even though “seamless” integration is often promised, legacy network infrastructure limiting data transfer and a mismatch of system functionality continue to challenge warehouse operators.

The second dynamic is the shift by many of the leading WMS providers such as Blue Yonder, Manhattan Associates, and Korber to focus horizontally at the broader supply chain, and shifting customers to a cloud-native, interoperable system approach. While this is helping to break silos at the planning level, bringing together WMSs, TMS, Yard Management Systems (YMSs), demand planning systems, etc. into one unified platform, the approach seems to have been at the expense of supporting the day-to-day task execution mentioned in the first trend above. It’s also worth noting that very few WMS providers currently have a clear strategy or message around private 5G networks, despite the need for the technology to allow users to access the advanced planning and analysis capabilities that require real-time, reliable data management.

It is also important to mention that system integrators (Bastian Solutions, Dematic, and Vanderlande) have played an increasing role in the warehouse market over the last 2 years as a focus on implementation has taken over the previous burst of innovation in material handling automation. Private wireless networks should be a central part of this, but it’s rare to see them as part of integrators’ core messaging. As more companies work with system integrators as “one-stop shops” for their warehouse solution implementations, private wireless must act as both the foundation and the bridge between the existing software stack and the incoming systems.