TL;DR: CJ Logistics, a global logistics leader, has partnered with Ericsson to launch the first full-scale commercial private 5G network in the logistics sector at its Ichiri centre in Icheon City, South Korea. This transformative network has already increased productivity by 20% at the Ichiri centre, emphasizing its potential for scalable and efficient logistics operations.

CJ Logistics has partnered with Ericsson to deploy a revolutionary full-scale private 5G network at its Ichiri centre in South Korea. This strategic partnership aims to enhance logistics operations, optimizing processes from goods reception to loading and unloading.

Post-implementation, CJ Logistics reports a remarkable 20% increase in productivity at the Ichiri centre. Notably, the efficiency gains are attributed to reduced picking process times, facilitated by real-time communication between devices and precision-enhancing technologies.

By unifying devices under a single private 5G network, CJ Logistics enables simultaneous operations of self-controlled vehicles, including AGVs and AMRs. This not only streamlines workflows but also enhances safety by allowing vehicles to operate at higher speeds without collision risks.

The Ericsson Private 5G Network empowers CJ Logistics to embrace Logistics 4.0, handling growing data volumes, integrating IoT devices, and leveraging AI for increased productivity. With the logistics industry projected to reach USD 14.08 trillion by 2028, scalable and reliable connectivity is imperative.

Connectivity Challenges

Facing persistent connectivity issues despite deploying 300 Wi-Fi access points, CJ Logistics turned to Ericsson for a private 5G solution. The decision was fueled by Ericsson’s rapid project launches, commitment to security, scalability, and cost-efficiency, resulting in 15% less capital investment compared to wired alternatives.

Ericsson’s next-gen private network solution, Ericsson Private 5G, supports 4G and 5G connectivity, ensuring secure and reliable operations. With only 22 radio dots, compared to 300 Wi-Fi access points, the private 5G network guarantees connectivity for innovative solutions, precise material flow, streamlined supply chains, safety enhancements, cost reduction, and sustainable practices.

Sangcheon Ryu, CIO of CJ Logistics, emphasizes the critical role of connectivity, making private 5G a strategic choice for the organization.

“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, said Ryu.

Thomas Norén, Head of Dedicated Networks at Ericsson, highlights the CJ Logistics collaboration as a groundbreaking example of the transformative benefits a private 5G network brings to businesses.

“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,” said Norén.