NOKIA CASE STUDY
- Irfan Mohammed
There was a huge demand for Nokia phones in the year 1996, due to these the company could not handled their supply chain due to the rapid growth as they had lot of back orders piling up. During these period to tackle the problems, Nokia started a supply chain transformation process in which they created an integrated supply chain which linked suppliers, manufacturing plants, contract manufacturers, sales, logistics service providers, and the consumer. These transformation process made Nokia's supply chain Flexible and Efficient, and also made enabling faster product innovation and helped in understanding the capabilities of it's suppliers and understanding better needs of customer. Their procurement process is also different as they had two types of suppliers , one is Direct supplier who supplies Nokia product materials like components, parts, packaging, software development, research and development. The other is Indirect supplier who supplies office furniture and computers, catering, IT consultancy and marketing. When a disruption occurred in 2000 for Nokia supply chain which caused a severe problem in supply chain as one of the plant got fired of its supplier Philips. But then Nokia handled these case very effectively , this made Nokia to redesign its supply chain management system. As part of redesign, it incorporated a series of dynamic visibility systems in its supply chain so as to track shipments of all of its major supplier's and also trained all suppliers to tackle emergency situation's. It Created a risk management assessment and contingency plans for major suppliers to tackle the risks in it's supply chain. Nokia mobile phones were manufactured in two stages , in the first stage all the main components of phones called 'Engines' were assembled and in the second stage the products were customized according to customers demands called 'assembly to order' are made. Nokia adopted a hybrid...
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