Subscribe To Newsletter Sourcing and Procurement 5G and Procurement – ‘leading the way to the Next-Gen’ What is 5G? The Next-Gen of cellular mobile communications is 5G which is the successor to current 4G and previous 3G and 2G systems. This technology will allow users to send and receive unbelievable amounts of data with significantly faster speeds up to twenty times faster than 4G without being hardwired as well as responsiveness in just milliseconds. Gartner predicts that there will be more than 20 billion connected devices in the year 2020 where 5G is expected to be accessible and energy efficient enough to power these connections. What is 5G's relation to Procurement? In current digital scenario and the way procurement operates, this new 5G technology could likely transform both and make its debut by early 2020, as implementation and further testing takes place. Impact of 5G on Procurement: Cost related: With every new technology out in the market, it invites additional costs. Procurement professionals have said that since this technology is new and under development, they are unsure as to how much this would cost consumers and how it will affect the business. At the same time, the current costs to mobile data may increase because of 5G that could affect both the business and consumers. Speed: The hype on 5G has already been mentioned by procurement experts that it would offer data 100 times faster than the present time. This in turn will help expand both sourcing and procurement activities as well as business functions, thus, enhancing their developing needs and requirements. Communication: Owing to its speed, this technology will help and make communication easier and work with suppliers, resulting in cost savings, and ensuring effectiveness. Latency: Coupled with the speed that accompanies this technology, this has also lower latency which means that this will be more efficient than 4G and internet connection drops would be much less. Download time: In this fast paced environment where we deal with a lot of data, media, software, etc., the amount of time it will take to download these on a 5G network will be done significantly faster. Video Conferencing (VC): With its speed and lesser internet connection drops, VC will significantly improve primarily in quality of supply chain service and reliability due to less packet losses. Recycle: 5G entitles hardware that as compatible with it, thus entailing the need to recycle outdated devices. At the same time, despite the availability of the new technology, organizations need to think if they actually need 5G in supply chain immediately. Some of them may be better off postponing 5G adaptation at least until the next hardware refresh. Readiness: Like in all ventures, unless one is ready to accept change and are prepared to brace the changes that would accompany it. How Procurement will benefit from 5g? One will witness: Amplified savings Improved supplier cost Opportunities in business How Procurement will benefit from 5g will arise from the connectivity and speed. Well, till then, let us wait and watch for this new generation of technology play out in the sourcing and procurement industry.