Telecommunication Industry 

The Telecommunication industry possesses one of the shortest product life cycle trends (Good and Service dominant logic perspectives). This trend is caused by rapid change in technology, constant new smart gadgets introduction, increasing competition caused by increasing Tele providers, and ever increasing product substitutes. Managing demand therefore becomes ever more critical to organisations operating within the telecommunication industry. The industry has as a result of the above evolved into a dynamic industry requiring tele organisations to run agile and flexible supply chain systems. The relentless new product introduction must be managed effectively to capture revenue and must also be effectively phased out to avoid high cost of product obsolesce. It is unlikely that the current speed of change within the industry will diminish. This is because as the flood of telecommunication products and services continue, the insatiable appetite of consumers for upgraded smart gadgets will increase resulting in an increase in data consumption(mobile and fixed)

 

 Demand management within the telecommunication industry is therefore critical to Tele companies as the efficient and effectiveness of its demand management systems have a significant part to play in the health of its bottom-line. Demand management within the telecommunication industry must incorporates mid-term and long range forecast, mid-term forecast is essential because of the short product life cycle trend for smart gadget products and change in data and voice packages. While long range forecast is focused on anticipated demand for bandwidth and network infrastructural upgrades to meet future demand and keep up with new infrastructural technology. In 2009, The Australian federal government owned and operated organisation for broadband NBNCo commenced with the aim of rolling out fibre across the country. The project was targeted at upgrading the country’s current telecommunication infrastructure to be globally competitive. Due to recent changes in technology, the NBN is now focused on the multi-technology-mix approach taking into account new and emerging telecommunication technology. Long range network planning is therefore more of a strategic planning and is different from the Sales and Operations Planning function which is more focused on short to mid-term consumer demand capacity planning.

Smyna
Supply Chain Consulting

 

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