~ Tackling challenges and driving sustainability ~
Efficient inventory management is vital for the telecommunications industry. It ensures the seamless availability of crucial components like optical transceivers, essential for maintaining and expanding networks. In an era marked by rapid technological shifts and the constant demand for high-speed connectivity, managing inventory effectively isn’t just about keeping costs in check—it’s about staying competitive, agile and sustainable. Here, Łukasz Bogdanik, procurement manager at telecommunications network specialist Salumanus, explains how telecom operators can optimise their inventory strategies.
As telecom operators rush to upgrade networks and deploy new technologies like 5G and prepare for 6G, they frequently encounter bottlenecks in inventory management. Outdated systems struggle to keep pace with the complexity of modern networks, resulting in misaligned inventory data, overstocked items and an inability to rapidly deploy necessary components.
This mismanagement also contributes to significant electronic waste. According to the UN Global E-waste Monitor, a record 62 million tonnes of e-waste was produced in 2022, an increase of 82 per cent from 2010 . Efficient inventory management is crucial to tackling this growing issue.
Challenges in telecom inventory management
Telecom operators face significant challenges in inventory management due to rapid technological obsolescence, outdated tracking methods and project-specific over-purchasing. Constant network upgrades lead to quick turnover of equipment like optical transceivers, resulting in excess stock and tied-up capital. For example, many telecom providers still rely on outdated technologies like legacy SDH (Synchronous Digital Hierarchy) equipment, which becomes obsolete quickly and leaves surplus stock that is costly to maintain.
Traditional, often manual, inventory systems struggle to keep pace, causing data misalignment and inefficient stock levels. Additionally, over-purchasing for specific projects leaves surplus items in storage, which not only occupies space but also incurs depreciation and maintenance costs.
Efficient inventory management
To address inventory challenges, telecom companies are increasingly turning to advanced technological solutions like AI-powered inventory management systems and blockchain. AI systems help optimise stock levels and automate replenishment, reducing stockouts and overstocking. Meanwhile, blockchain ensures transparency and traceability across the supply chain, minimising fraud and improving inventory visibility.
One of the most impactful trends is also the adoption of cloud-based inventory management systems. These systems provide real-time visibility into inventory levels, enabling telecom operators to optimise stock and respond swiftly to changes in demand. By integrating data from various sources, cloud platforms offer a unified view of inventory, enhancing decision-making and reducing errors.
Smart and sustainable inventory
Among the notable solutions transforming inventory management in telecoms is the Smart Recode Device (SRD) from Salumanus. The SRD addresses the inefficiencies of handling diverse transceiver inventories.
By enabling the recoding of optical transceivers, it allows a single model to be used across various network devices, drastically reducing the need for maintaining multiple variants in stock. This capability not only streamlines inventory but also supports quicker deployment of network infrastructure by providing ready-to-use components tailored for specific needs.
Moreover, the SRD supports remote configuration and mass recoding, which enhances operational efficiency by minimising manual interventions. It also improves traceability, allowing operators to monitor each transceiver’s status and performance, thereby reducing losses and improving overall asset management.
Effective inventory management is not merely a logistical necessity for the telecom industry; it is a strategic imperative that directly impacts financial performance and environmental sustainability. By embracing advanced technologies such as cloud platforms, IoT, AI and innovative tools like the Smart Recode Device, telecom operators can overcome operational inefficiencies, reduce costs and significantly lower their environmental footprint.
As the industry continues to evolve, sustainable inventory practices will be key to balancing growth with ecological responsibility, ensuring a more sustainable future for telecommunications.
To find out more about the SRD technology from Salumanus, visit www.salumanus.com.
