Nova Southeastern University
H. Wayne Huizenga School
of Business & Entrepreneurship
Assignment for Course:
SCM 5830 Supply Chain Management
Bernardo Mayrinck; 305-978-6810
Date of Submission:
February, 23, 2015
Title of Assignment:
CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.
***************************************************************** Instructor's Grade on Assignment:
Nokia India: Battery Recall Logistics
February 23, 2015
Dr. Ryan Atkins
The case analysis below presents the difficulties faced by Nokia India in 2007. Nokia had developed large brand recognition over a decade and was the market leader in India in the mobile device market. In 2007, Nokia corporate had considered a routine product advisory for a product defect recall, resulted in overwhelming panic from customers after the Indian media exaggerated the potential dangers of the defective battery. Over a three month period, Nokia expected to potentially recall approximately fifty to sixty thousand batteries but ended up having to answer to over three million requests for replacement. Along with the unexpected volume, they had to replace these batteries in a market with poor infrastructure for logistics.
Nokia India: Battery Recall Logistics
After analyzing the case at hand, there are few core questions used to make a recommendation to Nokia India’s CEO. First, what is my role as a CEO during a product recall situation and with whom would I be communicating and/or coordinating to execute this role? Second, what aspects of the recall were well handled and what aspects have room for improvement? India is a complex emerging market with limited infrastructure and various cultures Core Questions Analysis
Mobile customers in India purchased their devices independently from their mobile services. Because of this method, Nokia has direct sales contact to the customer instead of a mobile service provider who could potentially have a better customized relationship with its customers. The first mistake Nokia made was to underestimate the volume required for battery replacement. Initially, Nokia estimated anywhere between fifty and sixty thousand recalls. Due to the media exaggeration of the problem with the battery, customers panicked and did not follow the protocols set up by Nokia. The role of India’s CEO should have been to recommend to corporate the need of a supply chain capability and strategy to adapt and deliver in case of a recall to any issue with their mobile device (Charles Dhanaraj, 2011). After initial panic and communication failure with its customers, Nokia changed their strategy by creating a team of local expert in logistics to coordinate the task at hand. The group created an advertising campaign aimed directly to its consumers. Its focus was to eliminate customer concerns regarding the problem with the BL_5C batteries and providing them the information on how to check for a defective battery and process to replace. Each customer care center across the country was assigned a Nokia promoter who was specifically designated to assist walk-in customers to inspect and/or replace battery on site. Another major issue arose with the recall process of Nokia’s faulty battery. This was the reverse logistics strategy that would be needed to support the replacement of the component. Currently there were not enough...
References: Charles Dhanaraj, N. S. (2011). Nokia India: Battery Recall Logistics. Harvard Business Review.
Sanders, N. R. (2012). Supply Chain Management: A Global Perspective. Hoboken: John Wiley & Sons.
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