TEF's Unit & Dexory Forge Alliance to Transform Warehouse Management

By Zacks Equity Research | April 09, 2025, 9:20 AM

Telefonica, S.A.’s TEF digital business arm, Telefonica Tech, has partnered with Dexory, a robotics and data intelligence provider, to accelerate the digital transformation of the logistics sector. The collaboration will be officially announced at Advanced Factories 2025, Europe’s premier industrial innovation congress, held in Barcelona, Spain, from April 8 to 10. The initiative will empower logistics, distribution and manufacturing businesses by integrating Telefonica Tech’s cutting-edge IoT connectivity and systems integration capabilities with Dexory’s artificial intelligence (AI)-driven digital twin platform, DexoryView.

Using fully autonomous robots equipped with LiDAR sensors and advanced optical cameras, DexoryView can scan up to 10,000 locations per hour, capturing precise data on inventory status, volume and dimensions, item location and barcodes and identifiers. This data is then transmitted via Telefonica Tech’s secure IoT connectivity, analyzed in real-time and visualized on the DexoryView platform.

Moreover, Telefonica Tech’s deep expertise in the industrial sector enables it to integrate Dexory’s platform with existing Warehouse Management Systems (WMS). This integration capability is crucial as it allows businesses to synchronize inventory data with broader warehouse operations such as stock management, task and resource planning, goods receiving and dispatching, demand forecasting, and others. With Tech unit’s robust system integration, companies can create a unified digital ecosystem, enabling comprehensive and real-time warehouse control.

TEF-Dexory Partnership Streamlines Warehouse Operations

The launch of this service will transform daily operations in the logistics sector, shifting from outdated inventory reports to fully automated processes. This will enable complete visibility into warehouse activities, helping to identify inefficiencies and optimize overall operations.

Connected autonomous robots will minimize inventory mistakes and give companies access to more precise data for improved decision-making. They will also accelerate the identification of available storage space, enhancing space utilization. Also, the autonomous robots will significantly reduce the time needed to investigate and resolve issues like locating misplaced items or identifying incorrect product references.

The warehouse inventory automation service will enable the sector to make more accurate predictions regarding demand, inventory levels and storage capacity. It will also enhance workplace safety by assigning many of the more hazardous tasks previously carried out by employees to robots.

By deploying autonomous robots, leveraging AI and connecting systems through IoT, businesses can shift toward a fully digital, autonomous warehouse model.

TEF’s Strategic Collaborations Augur Well

Telefonica remains at the forefront of collaboration deals, augmenting its portfolio and footprint toward long-term growth and success. In March 2025, it teamed up with Nokia and AWS to bring cloud benefits to 5G RAN. The joined forces have tested Nokia Cloud RAN on AWS’s on-premises services in Madrid and its cloud region in Aragon, Spain. This hybrid setup allows Telefonica to leverage AWS’s cloud continuum, from central regions to RAN sites, enabling new network innovations.

In February 2025, TEF and Microsoft Corporation strengthened their five-year collaboration with an innovation initiative aimed at accelerating digital transformation in the telecommunications industry. This project focuses on using Open Gateway, the GSMA-led initiative, to transform telco networks into programmable platforms through Kernel, Telefonica’s AI-driven platform for digital services. 

In January 2025, it inked an agreement with IBM to engineer robust security solutions that safeguard businesses and public institutions from the risks of a post-quantum world. By combining Telefonica’s cybersecurity capabilities with IBM’s expertise in quantum-safe cryptography, businesses and public organizations can proactively protect their critical data and stay ahead of potential threats.

Momentum in cybersecurity and IoT business, mainly in the Private Sector, is driving Telefonica Tech’s performance. Steady sales growth and the rapidly expanding open funnel, which continues to grow at a double-digit rate, are expected to have a positive impact throughout 2025 for this unit.

TEF’s Zacks Rank & Stock Price Performance

TEF currently carries a Zacks Rank #2 (Buy). Shares of the company have gained 2.4% in the past year against the Zacks Diversified Communication Services industry’s decline of 15.3%.

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Other Stocks to Consider

Some other top-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, Ubiquiti Inc. UI and CommScope Holding COMM. IDCC, COMM & UI presently sport a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 15%.

Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 33.3%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.

Headquartered in Hickory, NC, CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. The company currently operates in three segments — Connectivity and Cable Solutions, Networking, Intelligent Cellular and Security Solutions and Access Network Solutions. It has a long-term growth expectation of 19.37%.

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Telefonica SA (TEF): Free Stock Analysis Report
 
InterDigital, Inc. (IDCC): Free Stock Analysis Report
 
CommScope Holding Company, Inc. (COMM): Free Stock Analysis Report
 
Ubiquiti Inc. (UI): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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