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 WISP Inventory Management By Tim Sanders
November 22, 2002
If you've been a wireless Internet service provider (WISP) for a while, with hotspots or outdoor wireless, you've probably lost at least one radio. You know it's working for you but you're just not certain where. If this sounds familiar you're not alone. WISPs experience this problem often. Before trying to solve this conundrum, it makes sense to understand how it comes about. Who Has Our Radios?Tracking inventory is not unique to WISPs. However, the value of radio equipment is typically higher than similarly sized inventory of other kinds. This makes it doubly important to know where it is. WISPs often own inventory outside their direct control. Inventory tracking problems evolve slowly. Small WISPs usually launch in just one market. There is usually one installer. Maintaining inventory is as simple as the accountant recording the receivers and serial numbers in a spreadsheet. Installers pretty much know where everything actually is in their heads. Success brings problems. At first, everybody is concentrating on serving new customers. As the business grows, installation personnel change, new cities open up and vehicles and storage locations move around. Inventory tracking gets postponed for more pressing needs. Compounding this problem, new WISPs make snap business decisions to sell equipment or barter or trade gear. Keeping track of all this gets pretty hard. Fixed wireless is still a pretty maintenance intensive business. Old-fashioned customer service causes one of the biggest problems. When troubles arise, it's usually easiest to program a radio and rush it over to swap or "trade out" a customer or hotspot location's problem unit. This is great service and usually the right thing to do -- but just how many of those product serial numbers actually get recorded and transferred in the records is anybody's guess. Sometimes the company sells equipment, but still needs to support it. However, it is important to not include the sold product as an asset by mistake. For small, on the move companies this may seem nothing to worry about. However, when providers move to the next step of investment or the owners wish to exit by selling, it becomes a big problem. During due diligence a very tight (usually audited) inventory is required. Having to go to every customer site in multiple towns in the middle of a due diligence process while still doing business is a daunting task. So, this begs the question---how can inventory problems be addressed early? Physical Controls HelpMaintaining inventory records is pretty simple if it is the company's culture. Starting up with a good documentation and physical control process ensures a tight inventory. However, if you're an existing business with hundreds of thousands of dollars in inventory already spread over five or six cities, how do you begin? It begins with physical controls. Commence by organizing each equipment room and installation vehicle. Inventory everything. Record the distributor, manufacturer, serial number, model number, wholesale cost, length or other pertinent facts. During this process organize each room or vehicle for a quick inventory. Put up organizers, hang things, set up racks for cable, whatever works best to keep it neat. Then lock the door. Audit as many customer sites as possible (all if possible, a large percentage if not). Decide on who gets keys and limit access to those people. Delegate responsibility for reconciling any inventory discrepancies to them. Assigning accountability to those who touch the inventory is key. Documentation is the next step. Small WISPs cannot get too bogged down by documentation if they want to survive, so keep it simple. A clipboard hung on the equipment room door or the install truck front seat is fine. Record each piece of equipment going out, the quantity, a serial number, where it is going, which installer took it and the date. At the same time note any recovered equipment exactly the same way. This is simple and sufficient. One person later enters this in a spreadsheet, database or master log, preferably at the end of the day. It's essential to do regular inventories. Once a month is good. If there are discrepancies, those with accountability must track them down. This is effective in encouraging daily documentation. After the first big hunt for discrepancies, no one will want to do it again. What About SoftwareInventory resides in equipment rooms, storage buildings, installation vans, trucks trailers or warehouses. That's easy. However, also WISPs deploy inventory at customer sites, on towers and in buildings. A building may have rooftop equipment for multipoint relays. The same building probably contains distribution gear as well as customer premise units. Some will be owned by the WISP. Some won't. Either way, the WISP is likely responsible to support it. Keeping track of which deployed products are really your company assets quickly gets complex. Software is one solution. Even nothing more than a spreadsheet can help. However, spreadsheets are labor intensive. Commercial inventory packages exist but are pricey and few are optimized for WISPs. Some firms choose to build their own tracking databases. Whether your WISP is selecting software or building it there are some basics. Secured Web accessible software is mandatory for multi-city operations. Associating equipment with a contact record is important. It is useful to track actual ownership piece by piece. Look for a system built around entering inventory details when it's first received. Transferring inventory later should be easy. Select a product allowing user-defined information for each unit, such as IP and MAC addresses, firmware version and standard service set identifier (SSID). ConclusionIt is possible to control inventory. Simple really is best in this case. Employees will do simple things to prevent having to do hard things like reconciling an inventory every month. With just a bit of effort you can take control of that slippery stock. Tim Sanders is founder of The Final Mile, a fixed wireless consulting group. His experience was gained running a multi-state fixed wireless ISP. He can be reached at www.thefinalmile.net
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