Yes, it’s true. Chinese tech giant Huawei built UAE’s first 5G smart warehouse in Dubai. Recently, the smart warehouse in South Dubai was unveiled to the public, and it started operating. It’s a part of the “We the UAE 2031” vision.
This is the first “new-age” smart warehouse in UAE. It’s an innovative project undertaken by Huawei which will use the 5G network and various robots to automate warehousing. This will reduce the time spent moving goods around in the warehouse by 80%.
However, the USA does not seem to be too happy about this development. The USA has been on a competitive campaign against Chinese tech firms since the Trump administration began operating. In addition, the Biden administration seems to agree – that Chinese tech products have many security issues.
So, how will Huawei’s new 5G smart warehouses revolutionize inventory storage and management for UAE firms? Moreover, what implications will this have on the USA and UAE trade relations? Read this post to find out!
What Is A 5G Smart Warehouse?
As the name suggests, a smart warehouse is a technologically advanced warehouse where almost everything is automated.
Here, various automated systems are working in tandem to ensure everything in the warehouse is in place. Therefore, smart warehouses use multiple forms of software and hardware, like robotics and automation.
Smart warehouses primarily rely on one central overarching system that controls all the subsystems. Therefore, you may compare a smart warehouse to a human body. The primary system acts like the brain of the warehouse, while the subsystems act like various organs.
The primary objective of setting up a smart warehouse is to lessen human intervention. For example, have you seen automatic conveyor belts in warehouses and manufacturing units? They are early forms of warehouse automation – a concept fully realized using smart warehouses.
In addition, one of the greatest benefits of using a smart warehouse is that it operates 24/7. Therefore, whenever you need anything from the warehouse, you can simply get it by using a computer from your home!
Note: However, while companies do not allow control from homes, it’s possible to use IoT (Internet of things)-based home automation devices!
How Does A 5G Smart Warehouse Function?
Now that you know what a smart house does and what to expect from the new smart warehouse in Dubai – you might wonder: how does it all work?
While every smart warehouse has different functionalities and systems, I know that this Huawei smart warehouse in Dubai will be like the one they built in Indonesia for Telkomsel a few weeks ago.
Regarding the functionality of these smart warehouses, this is what Dr. IR. Ismail, Director General of Resources Management and Equipment of Posts and Informatics of Indonesia, has to say:
“Huawei’s 5G Smart Warehouse stands as both a wake-up call and a quintessential model for the ecosystem, demonstrating the immediate and seamless integration of 5G technology into digitalization efforts. This integration yields innovative solutions that extend benefits beyond the logistics sector to many industries. Such advancements are attainable solely through the concerted efforts of all stakeholders, united to accelerate the nation’s digital transformation.”
Therefore, we will see two major forms of technological innovations here, namely:
1. Automated Guided Vehicles
As the term suggests, an Automated Guided Vehicle (AGV) is a robotic car with many smart sensors – and no driver! This small but smart vehicle can be controlled externally by a warehouse control system (WCS). Moreover, it helps move heavy goods between two points in the warehouse since they are generally not controllable.
The AGVs that Huawei will install in Dubai’s 5G smart warehouse will leverage the power of 5G technology for smarter operations. This allows it to use its collision avoidance technology with optical sensors. Here, the warehouse floor has several reflector strips on the routes, which the AGV automatically identifies and moves along!
Moreover, this is possible since the AGV uses a retroreflector to detect the reflector strips on the floor. This allows it to follow its path. Furthermore, it has smart collision sensors, which help it steer clear of other AGVs on its path automatically!
These AGVs can move approximately 400 kgs (about 882 lb) of goods. The use of these AGVs significantly changes the way warehouse employees work. Therefore, instead of employees using forklifts to move around goods manually, the AGV does the work for them automatically!
2. Digital Twin
This 5G warehouse has an IOC (Integrated Operations Center), which shows the position of all goods and AGVs. This is where the Digital Twin system comes in, where every good and AGV has a digital version of it on the IOC.
Therefore, the IOC control screen will show the exact location of all the goods in the warehouse and the AGVs in real-time. Moreover, it also has a color-coding system that determines whether goods have been idle for a long time. Therefore, if it’s red, you better assign an AGV to take it to its destination!
In addition, since the AGVs run on electricity, their remaining battery percentages and current routes will be shown on the IOC screen.
How Will Huawei’s 5G Smart Warehouse Help Companies In UAE?
UAE took the help of Huawei to create this 5G smart warehouse as a part of their “We the UAE 2031” initiative. This initiative has a vision of developing the country’s technology ecosystem to make it automatic and smarter.
Moreover, this technological advancement has one main aim: to make society more technologically advanced. Therefore, it’s expected that the UAE will focus heavily on 5G technology and automation this decade, and creating a 5G smart warehouse is just the start.
Regarding its creation, this is what Jiawei Liu, Chairman of Huawei UAE, has to say regarding the development of the new smart 5G warehouse in South Freezone, Dubai:
“We are proud to help build the UAE’s first 5G smart warehouse. This demonstrates our vision to drive digital transformation and unlock new possibilities through advanced technologies for the development of various industries. The logistics industry plays an important role in the economic development of the UAE. With the development of the warehousing and logistics industry, the demand for digital solutions is increasing. We believe the 5G smart warehouse will facilitate and pave the way for a new era of smart logistics in the UAE, benefiting both businesses and consumers.”
This new 5G smart warehouse in Dubai will provide two major benefits to the UAE industry, especially if more such smart warehouses are built. They are:
1. Make Warehousing More Energy-Efficient (And Cost Effective)
Firstly, automation makes warehousing more energy efficient, thanks to its use of AGVs. Unlike traditional warehouses, which use forklifts and manual labor to move things around, smart warehouses use automated AGVs instead.
However, did you know that most forklifts use 40 liters of petrol daily? Therefore, a warehouse with ten forklifts will be 400 liters of petrol daily – to 12,000 liters a year!
This is why building a smart warehouse is more energy efficient since it runs entirely on electricity. Therefore, not only will companies in the UAE be able to save on petrol, but they can also save on their expenses as well!
2. Make Inventory Management More Accurate And Faster
Inventory management is no joke. It takes many hardworking employees to run a warehouse properly.
This is where automatic technology in the form of an AGV can substitute human intervention to a great degree. Over time, if more such smart warehouses are created in the UAE, the need for additional human hands on deck will be reduced.
Moreover, these AGVs leverage 5G’s low-latency network to get work done fast with 99% accuracy!
USA’s Anti-Huawei Campaign: What It Means For UAE
The USA has slowly increased pressure on other countries that have trade relations with them to cease trade with China, especially in dealing with technology. This is because the USA believes that China always has the agenda of targeting markets that have the USA’s presence in them – and usurping the throne.
So far, the USA and the UAE have been great trade allies, especially in exchanging military equipment and technology. However, China seems to be overtaking the USA’s top spot as the UAE’s primary technology supplier.
However, this has been the case globally since China has a global monopoly on one product – semiconductors. You will find these microchips inside every smartphone, computer, – and any telecommunications device capable of accessing the internet.
Therefore, the USA believes that the Chinese government wants to gather intel on the USA using “spy technology guised as your everyday smartphone.” This is why the USA wishes to combat this security threat – especially the use of 5G technology provided by Huawei – by stopping ally nations – like the UAE – from using them.
However, the UAE seems least interested in bowing down to the USA’s demands not to maintain trade relations with China, especially the UAE.
Moreover, it seems like the UAE is adhering to the demands of both nations, as Dubai’s AI company G42 divests all shares of ByteDance (a Chinese AI company) to invite investments worth $1.5 billion from Microsoft.
This is why Huawei building a 5G smart warehouse in Dubai might trigger USA businesses to withdraw from conducting certain trade with UAE. However, this isn’t set in stone. Only time will tell what the future holds.
Conclusion: A Smarter UAE For A Brighter Tomorrow
Huawei’s building of a 5G smart warehouse in Dubai – the first in the UAE – will greatly help businesses improve their warehousing and inventory management.
However, since Huawei made it, the USA has some security concerns over their involvement since they believe Huawei will use 5G technology to siphon data.
Therefore, such a decision by the UAE might strain trade relations with the USA. However, only time will tell whether this will be a reality or a hunch. Moreover, leave a comment below about what you think might be the result of this!
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Debamalya Mukherjee
