Tuesday, December 14, 2010

Nokia Supply chain

Nokia Supply chain:
For Nokia, the reality of a supply chain management is a fact; and the commercial organisation chosen and the levels of service displayed are proving it. Nokia doesn’t sale its cell phones directly to individuals, they sale them through operators such (Bouygues, SFR, Maroc Telecom) and to distributors (Cora, Auchan, Carrefour…) also to traders who are intermediate who are responsible for the marketing of Nokia products with the small distributors.

The supply chain management of Nokia is very strategic because of the market expansion. It’s a market who grows slowly, so they should optimize resources and the capacity of production. Another point that shows the importance of supply chain manager holds that the competition is exacerbated. One of the operators have manufactured in the Scandinavian countries, so Nokia has to take decisions to optimize the supply chain to counter their offer.

As a big MNC, it should be much organised. In the beginning it plans forecast. Nokia looks to the market three years. Then, they make a forecast in their sales over 12 months. Every subsidiary develops previsions of their market. In their prevision of sale, things aren’t simple. It does not only make a historical observation and then have a prevision, no; it must be taken into account the rate of penetration in the country and its level of growth in the future. It looks the part of the market that needs improvement.
These 12 months forecast and the daily schedule in the very short term allows two things. It allows Nokia to know it needs for the next weeks and for the next months, per 14 country, per family products. Then Nokia will optimize the capacity of production which is then distributed. Each country will be given a part of production.

Nokia is organised in the base of two teams. There is one team of prevision and sales planning (logistics team), working against a team to optimize the daily production capacity and supply (supply team).

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