Supply Chain Management Practices at Nokia Corporation


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Case Details:

Case Code : OPER086
Case Length : 14 Pages
Period : 2005-09
Organization : Nokia Corporation
Pub Date : 2009
Teaching Note :Not Available
Countries : Finland, US
Industry : Telecom

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"Nokia is an operational juggernaut with leading procurement and supply chain techniques. You have to give Nokia credit for maintaining a hybrid manufacturing system that adjusts pursuant to volatile demand patterns." 1

- Jeffrey Wu, Senior Analyst at iSuppli Corporation2, in March 2009.

"As a pioneer in value chain strategy, Nokia has led in supplier development, sales and operations planning, and collaborative product development." 3

- AMR Research4, in June 2007.

Introduction

In May 2009, Finland-based Nokia Corporation (Nokia), the world's leading manufacturer of mobile devices, was placed sixth in the list of top 25 companies in global supply chain management, announced by AMR Research (Refer to Exhibit I for AMR Research Supply Chain Top 10 List for 2009). According to AMR Research, "Nokia continues to stay ahead of the curve on everything from regional sourcing and deep supplier collaboration to an organizational design based on true value chain principles."5 AMR Research selected the manufacturing and retail companies from Fortune's Global 500 ranking.

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1] Brian Lam, "Nokia Cancelling $5B of Outsourced Cell Phone Production," http://gizmodo.com, March 27, 2009.
2] iSuppli Corporation (iSuppli) is the global leader in technology value chain research and advisory services. The services offered by the US based company ranges from electronic component research to device specific application market forecasts, from teardown analysis to consumer electronics and from display device and systems research to automotive markets (Source: http://www.isuppli.com).
3] "AMR Research Ranked Nokia's Global Supply Chain Number One in the World," www.nokia.com, June 01, 2007.
4] AMR Research is the world's leading independent research firm focused on the global supply chain and its supporting technologies. The company provides subscription advisory services and peer networking opportunities to supply chain, sustainability and IT executives in the consumer products, life sciences, manufacturing and retail sectors (Source: www.amrresearch.com).
5] Tony Friscia, Kevin O'Marah, Debra Hofman and Joe Souza, "The AMR Research Supply Chain Top 25 for 2009," www.amrresearch.com, May 28, 2009.

 

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