Foreign media: "Solve the abnormal heartbeat of AGV", China's JD Logistics is interpreting the global 5G vision

Chinese retail giant JD.com's smart logistics business "makes Amazon look primitive", according to regional English-language publication Asia Times.

Of course, its warehousing and fulfillment delivery business JD Logistics (JD Logistics) caught the attention of industrial tech media this summer when it revealed a fleet of more than 100 5G-connected automated guided vehicles (AGVs) guiding it to Past its (self-produced) busy "6/18" (June 18th) sales peak.

It claims that the efficiency of transporting goods has increased by 200%. JD Logistics has been managing the new 5G network at a distribution center in Changsha, southern China's Hunan Province, in what it says is the company's busiest logistics park (dubbed "the first in Asia"), as a private installation of the local public spectrum. It said it was an "industry first" at the time and a "scaled commercial deployment of a private 5G smart warehouse".

Like others, JD Logistics' shining moment was to "solve the abnormal heartbeat of AGVs". AGVs connected to 5G maintained near-zero packet loss and connection timeouts dropped by 70 percent compared to Wi-Fi, it said. Use cases on the web are also multiplying, including machine vision for quality control and IoT tracking for tracking. Shenzhen-based AI-LINK is the only vendor named, but most local vendors and operators are also involved to varying degrees.

Chen Yami said that the cost of private 5G must come down in order to scale up.

In a conversation with the US media "Enterprise IoT Insights" ("Enterprise Internet of Things Observation"), JD Logistics' 5G expert Chen Yami said that the project has been rolled out to other warehouse locations in China. How many? Chen offered a number, then took it back. But suffice it to say that's a respectable double-digit figure -- which gives some meaning to yesterday's Airbus headlines about the preeminence of the European company's multi-site private LTE/5G rollout.

Except Chen also said its own expansion was "pre-scale" and asked to add that number from the copy. But the number of networks isn't that important (we're just glad we got the call); what's more interesting is the reveal that JD Logistics has developed an entire logistics-network management system to go with these private 5G installations, which will be bundled as Industry 4.0 A portion of that is sold globally, with or without private 5G providers.

On paper, of course, this describes the ultimate promise of digital transformation for businesses—not just greater efficiency and production, but complete reinvention, or at least new revenue.

"We want to be a customer and supplier of 5G logistics applications," Chen said. Another point about these named and unnamed vendors; JD Logistics is working with the entire telecom ecosystem, she said, including these other Chinese brands, optimizing telecom for logistics, optimizing logistics for telecom -- enhancing the network for logistics applications performance, reduce network costs for logistics companies, and enter the market in a mob way, popularizing industrial 5G.

But Chen can tell you all this, and more, from his own mouth. "For private 5G to scale in logistics, costs need to come down -- in line with LTE and Wi-Fi costs," she said. "And for that to happen, it will take collaboration. We are committed to working with the telecommunications industry to demonstrate the value of 5G systems and increase interest in it from the wider logistics industry." Below is a transcript of the conversation, with all the answers from her.

Scientific fact - JD Logistics is deploying 5G-connected AGVs at its warehouses in China and beyond, not just for JD (Image source: JD.com)

Talk about your work on 5G, and your strategy?

"We have deployed private 5G to connect AGVs in our warehouses - specifically to prevent previous problems with abnormal timeouts caused by Wi-Fi network latency. It provides operational stability for the AGV fleet - which in turn improves It improves processing power and overall warehouse efficiency, which is especially helpful during peak sales periods, such as the 6/18 promotion. Unlike Wi-Fi, 5G achieves zero packet loss; it reduces AGV timeout rates by more than 90% .”

"You need more than 10 Wi-Fi access points to connect AGVs in a warehouse of 5,000-7,000 square meters, for example, the handover between Wi-Fi access points may be frequent, and connection failure may occur; therefore, If there is enough floor space and a large-scale AGV cluster, and real-time control of the AGV is required, then 5G is the ideal path to guarantee performance. During the 6/18 promotion, we had more than 100 AGVs connected to 5G in our warehouse -- The network timeout of the AGV fleet has been reduced by more than 90%.

"Not just a smart logistics platform, we've also developed a 5G logistics management system platform that gives the health status of the network and all the devices on the network -- so, in terms of AGVs, we can plan maintenance and look at the network itself Is there any question. JD Logistics is also using private 5G for smart storage, traceability and security in warehouse environment, using IoT, AI, AR applications -- all of these in our smart logistics platform and 5G Managed within the management platform.

"Network performance is monitored and guaranteed, warehouse management efficiency and security are greatly improved. As a result - and the need for human intervention is greatly reduced. And we are also integrating into transportation and distribution - for smart distribution services .Our view is that 5G will become a critical information infrastructure for the logistics industry and more broadly, like cloud computing.Our strategy, through our logistics platform, is to drive efficiencies across the supply chain, within our own Operations and customers' operations, both in China and abroad."

What spectrum are you using and who owns it? Does it belong to a certain operator, or is it your own spectrum?

"In China, we mostly work directly with network operators. The spectrum is public and licensed to operators, but the network in warehouses can be private and only used by JD Logistics. We work with different 5G operators. We use 2.6GHz spectrum, also using 3.3GHz, 3.4GHz and 3.5GHz spectrum - serving our warehouses and our logistics partners. At the same time, we are working with equipment suppliers to further develop network and service synergies , while expanding our business proposition overseas, including in different local 5G frequency bands."

Has JD Logistics installed RAN infrastructure from Huawei and ZTE in its warehouses?

"We are quite open to suppliers. We want to work with the most advanced technologies. For example, we are working with AI-LINK to reduce network costs. But we are also working with other companies because different companies have different advantage. We need to provide the best service based on the best technology".

How many locations have you deployed private 5G? You have this big warehouse in Changsha, Hunan; do you have others, also equipped with 5G network?

"We first deployed a 5G-based application in Beijing, where our R&D team is. So we started there, and in 2019, in fact, it was the first logistics park in China to use 5G. We are also in China now Logistics applications using private 5G in other warehouses everywhere. But we are still in a pre-scale period."

What are the challenges of scaling up? What was the process for making this technology standard across all your sites?

"This requires the cooperation of the entire ecosystem. JD Logistics is committed to becoming a leading provider of technology solutions for the logistics industry. We hope to provide customers with more efficient logistics services and reduce logistics costs. In order to make private 5G a network solution for the logistics industry For the solution to be rolled out, the cost needs to be further reduced - in line with LTE and Wi-Fi costs. And to achieve this goal, cooperation is required. We are committed to working with the telecommunications industry to demonstrate the value of 5G systems and improve the value of 5G systems for the wider logistics industry. interest. Because the market has to understand what they're buying and why they're buying it -- the value they're going to get from the investment. And our 5G-based solution demonstrates the value very clearly."

"Our cooperation with 5G suppliers and operators is based on three principles. The first goal is to improve each other's respective capabilities. Because 5G improves our own business capabilities, by reducing things like AGV overtime and improving overall warehouse efficiency, we "The cooperation shows the value of 5G to the industry. The second thing is the business side of this symbiotic relationship; so we have developed a joint 5G logistics solution with the supplier, which we are co-promoting through each other's sales channels.

"The third element is our shared commitment to improve the performance and cost of 5G. For example, our 5G logistics management system connects with any 5G supplier's equipment and provides end-to-end system visibility, enabling the network and the applications on the network And the equipment is more manageable and efficient -- maximizing the investment. Currently, a 5G module costs more than 2,000 yuan. But we are exploring how RedCap, for example, can provide enough performance to maintain certain logistics services, while also reducing The cost of 5G hardware. So our cooperation with the industry is quite extensive."

Does JD Logistics manage its own 5G network at its own site -- through this end-to-end management platform? Or is the provider's carrier managing your 5G network?

"We've worked with suppliers and operators to build this 5G management system. They're feeding the platform real-time data on network performance. So from the 5G management system, I can see where the problem is -- it could be The equipment, the AGV, or the network itself, or the service host. So, with this end-to-end visibility, we can quickly determine where the problem is and fix it quickly."

Do some cases using logistics work well on LTE? Presumably some warehouse work still uses Wi-Fi too - some use LTE, 5G, NB-IoT? Are you using all these technologies?

"Yes, we used to use Wi-Fi in a lot of our mobile applications in the warehouse -- and public 4G on the road, for example in our vehicle locator positioning devices, as well as satellite and Wi-Fi."

So the big plan is to export 5G network management platforms and 5G-based logistics applications to other logistics companies? Is this correct - you also want to be a logistics technology provider?

"Yes, we want to be a customer and a supplier of 5G logistics applications. On the one hand, we are customers of these things, on the other hand, we are working with the telecommunications and warehousing sectors to serve the wider logistics industry, not only logistics companies, but also customers who need logistics services."

How much of JD Logistics’ business serves JD.com, and how much of it provides fulfillment services for other industries and companies?

"More than 60% of JD Logistics' revenue comes from external industries, not from JD.com. We have customers in different industries, and they all need logistics services - such as automotive industry, medical industry, electronics industry and FMCG industry. We provide services for different industries Serve".

You said earlier that JD Logistics is working with telecom providers to look at other markets outside of China -- to see what the spectrum situation is and to see how to get into the market. Does JD Logistics already have warehouses around the world, or is it primarily interested in serving other parts of the global supply chain?

"Yes, we are looking to sell 5G solutions for the logistics industry at home and abroad. Our ultimate goal is to help customers improve their efficiency and costs. And 5G provides a network platform to do this and introduce various new logistics applications, to do that. But we can also work with Wi-Fi-based solutions. It’s not just about 5G.”

How do you think China is doing on private 5G/Industry 4.0 - compared to the rest of the world? Because it's a different market. Many markets now allocate spectrum directly to enterprises; however, in China, spectrum is still largely owned and controlled by operators. So it's a slightly different 5G profile for industry. How do you see industrial 5G developing in China and not elsewhere?

"Since the situation is different, different countries have different situations. In some countries, public 5G may not be deployed as well. In China, 5G is available all over the country, which means that there are many opportunities to access 5G networks. But to For us, we are more interested in developing applications [rather than selling networks], and we think we can relate to the local 5G spectrum regardless of the supply chain customer situation. We are committed to our goal of developing 5G-based logistics solutions that drive efficiency and intelligence for customers."

How much does JD Logistics do to provide IoT tracking and monitoring solutions outside the warehouse (e.g. on the road, between the warehouse and the manufacturer and retailer)? Is JD Logistics developing solutions for these types of applications to track goods over public mobile networks?

"Yes, of course. Our goal is to provide end-to-end logistics technology and services, as well as end-to-end visibility of the entire supply chain. We are the first logistics hub in China to deploy 5G, and we have begun to expand this 5G AGV application, But that's only part of the story. We have trucks and delivery vans on the road all the time, connected to cellular networks to understand vehicle loads in transit, and integrated with logistics processes -- not just cellular, but RFID for item identification And satellites for positioning, etc. So we use different technologies for supply chain visibility.”