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The innovation of 5G in on-the-go FMCG’s food sector: Manufacturing’s sustained competitive advantage

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  • Chelsie Farah Utami

    (Faculty of Economics and Business, University of Groningen, Groningen, Netherlands)

Abstract

The fluctuating interests of a fast and convenient lifestyle in the 21st century are on the rise, especially Fast Moving Consumer Goods' (FMCG) food sector. Manufacturers are under extreme pressure of squeezed margins due to heightened maintenance costs and complicated procedures of unstable and growing demand. More services and replacement of machine parts increases costs, planned downtime, and disruption to operations. This study presents a way 5G enables factory machines appliances to fulfill demand uncertainty by adapting to the environment and business process through machine-to-machine communication. It is possible by establishing higher flexibility, efficiency, and shorter lead times for factory floor production and layout changes [1]. How does 5G matters for manufacturing in the FMCG food sector for firms to sustain competitive advantage? Two perspectives of stakeholder based competition and resource based promote the maximization of profit. With direct involvement between machines, 5G build up efficiency and error detection ability of manufacturing. The most noticeable advantage of 5G is reliable communication protocols, sensors, accurate detection of machine maintenances, and faults. 5G is the future direction for the modernization of manufacturing; however, massive investment price indicates the commercial success of 5G in manufacturing is not expected in the next several years until the required cost of expenditure reduces. This research shows 5G in food manufacturing with big data application negatively correlate to efficiency for the near future. Later, food manufacturers can continuously enhance the knowledge and technology to acquire the best benefit of 5G at a beneficial cost and returns to a company's sustained competitive advantage.

Suggested Citation

  • Chelsie Farah Utami, 2019. "The innovation of 5G in on-the-go FMCG’s food sector: Manufacturing’s sustained competitive advantage," Journal of Advances in Technology and Engineering Research, A/Professor Akbar A. Khatibi, vol. 5(4), pages 159-173.
  • Handle: RePEc:apb:jaterr:2019:p:159-173
    DOI: 10.20474/jater-5.4.2
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