Abstract

Finland-based Nokia Corporation (Nokia) is the world’s leading manufacturer of mobile devices. Analysts attributed Nokia’s success to its supply chain management practices. The company had an integrated supply chain which inter-linked suppliers, manufacturing plants, contract manufacturers, sales, logistics service providers, and the consumers. It entered into a long-term relationship with its suppliers and also supported them in improving their processes, which in turn helped the company. Nokia was able to keep its costs low because of its efficient manufacturing systems and processes. The company adopted a hybrid manufacturing system which was a combination of in-house manufacturing and outsourcing. It also adopted the Smart manufacturing technique so as to enhance the competitiveness of its manufacturing facilities. The company had a wide distribution network which helped it to effectively reach the end customers. The case highlights the unique supply chain management practices of Nokia. It also discusses the impact of global economic slowdown on Nokia’s revenues and profitability. The case examines how the company is making its supply chain efficient to counter the impact of reduced demand of mobile handsets.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the importance of efficient supply chain management practices in the success of any business
• Study the supply chain management practices at Nokia
• Appreciate the need for a customized supply chain while operating in different countries
• and Analyze the challenges faced by Nokia in the near future.

Keywords

IKEA, Operational efficacy, Supply Chain Planning, Supplier Relationship management, Flat Packaging, Warehouse operations, Store design, IWAY, Supply chain management, Transportation and warehousing costs, Ingvar Kamprad, Stackable products, Trading service offices, Strategic forecast, Tactical forecast, Forecasting, Business areas, Replenishment, Landing price, Lead time, Distribution centers, Automated retrieval system, Warehouse Management System, Vendor Managed Inventory, Pallets, Flat trolleys, RFID Technology