"Vehicles and machines moving through the logistics center without drivers, quality control guided by artificial intelligence, remote management of most processes are just part of what is already in use at the Huawei European Supply Center in the Netherlands.
This smart distribution center is one of the largest Huawei logistics centers outside of China, supplying their products to customers in more than 50 countries in Europe, Central Asia, and North Africa. The center processes around 60,000 items each month, transporting an average of 400 cubic meters of outbound cargo daily, distributed by more than 30 trucks.
The smart supply center is one of only four such facilities globally and a key component of the integrated European supply and distribution center for Huawei products.
"In the distribution center, a 5G private network covers approximately half of the area. Its biggest advantage is low latency, or waiting time, and high speed. Each device can use speeds of up to two gigabytes per second. This means that even video transmission is not a problem at this speed. Using the latest technologies, such as AI/AR and smart algorithms, we can manage faster inbound and outbound processes and much more precise confirmations for our deliveries," emphasizes Sandor Papp, Deputy Head of Huawei's European Supply Center, which includes a similar center in Hungary.
Papp adds that Huawei's supply centers in the Netherlands and Hungary have reduced operational costs and improved efficiency by at least 20%, thanks to the development of artificial intelligence applications and 5G telecommunication speeds in their operations. The operation of these two logistics centers, through which Huawei products worth $8 billion are circulated annually in Europe, has been technologically upgraded in the last 2.5 years.
The United Nations Industrial Development Organization (UNIDO) also emphasizes the impact of the development of digital tools, artificial intelligence (AI), and 5G technology on productivity, competitiveness, and sustainable development. This UN organization leads the Global Alliance for Artificial Intelligence in Industry and Manufacturing (AIM Global), of which Huawei is a strategic partner.
Vicky Zhang, Huawei's Vice President of Corporate Communications, says that digitization and automation are two industrial mega-trends and the key to our future. These two trends are rapidly changing our lives with new technologies such as 5G and artificial intelligence that lead us toward a smarter and low-carbon world. This is also the reason, she says, why Huawei has become a strategic partner of UNIDO's AIM Global alliance.
Ana Paula Nishio de Sousa, Head of Digital Transformation and Artificial Intelligence Strategy at UNIDO, emphasizes the importance of inclusive sustainable development.
"Inclusivity means involving all sectors of society and leaving no one behind. Sustainability refers to protection from negative impacts on the environment. AIM Global follows these principles. It is a partnership open to all, to the public sector, the academic community, governments, and industrial associations. It is about elevating the state of AI in the manufacturing industry and making it inclusive and sustainable," she notes.
5G plays a crucial role in increasing productivity as it enables the movement of autonomous vehicles, quality control guided by artificial intelligence, and remote maintenance with the help of AR. Based on current trends, the combination of 5G, cloud computing, and artificial intelligence will be used in an increasing number of scenarios in the near future to herald a new industrial era: Industry 4.0.
Although there is a global concern, including in our region, that automation could lead to mass job losses, Professor at the Deggendorf Institute of Technology, Dr. Patrick Glauner, says that the chronic labor shortage should also be considered.
"When it comes to increased automation and artificial intelligence in industry, it's not just about costs and everyone losing their jobs. Here in Europe, and I think it's the same in China, there is a significant demographic change. We have an aging society, so it's not just about doing things cheaper or with fewer people. In fact, it's about still being able to do things because there are fewer people available for that job. And artificial intelligence allows us to compensate for and solve the problem of an aging society and a talent shortage," warns Dr. Glauner."