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Case Analysis

The document summarizes Nokia's effective supply chain management in response to a fire at a key chip supplier's factory compared to Ericsson's inadequate response. The fire at Philips' New Mexico factory disrupted chip supply for both Nokia and Ericsson. Nokia activated a crisis plan, found alternative suppliers, and avoided production losses. In contrast, Ericsson's low-level employee did not notify supervisors of the fire until weeks later, causing delayed production. The document recommends Ericsson improve supplier tracking and crisis response strategies, while Nokia should continue innovating products.

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Radhika Chhabra
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337 views

Case Analysis

The document summarizes Nokia's effective supply chain management in response to a fire at a key chip supplier's factory compared to Ericsson's inadequate response. The fire at Philips' New Mexico factory disrupted chip supply for both Nokia and Ericsson. Nokia activated a crisis plan, found alternative suppliers, and avoided production losses. In contrast, Ericsson's low-level employee did not notify supervisors of the fire until weeks later, causing delayed production. The document recommends Ericsson improve supplier tracking and crisis response strategies, while Nokia should continue innovating products.

Uploaded by

Radhika Chhabra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CASE STUDY ANALSIS

NOKIA SUPPLY CHAIN


MANAGEMENT

Submitted by- Group-12


Karan Mehta-70
Rahul-89
Radhika Chhabra-102
Shubham Kumar-
Ashutosh Swarnkar-
WHAT IS SUPPLY CHAIN?
• A supply chain is an assortment of
the design and management of
processes across organizational
boundaries with the goal of
matching supply and demand in
the most cost effective way.
NOKIA SUPPLY CHAIN
MANAGEMENT

Nokia
Ericsson

Philips factory
in New Mexico
CASE OVERVIEW
• Royal Philips is a Dutch technology company headquarter in Amsterdam.
• On March 17, 2000 A fire broke out in fabrication line of the ROYAL PHILIPS ELECRTRONIC radio frequency
manufacturing plant in Albuquerque.
• The plant was a key supplier of semi conductor chips used in the cell phone for both ERICSSON and NOKIA
• The fire was extinguished within the ten minutes.
• Ericsson and Nokia, Philips relayed that in a week before production would return
• Further reported to Ericsson and Nokia that the process to resume normal operations would take six weeks.
• Nokia's team, which had a crisis plan in place, sprang into action. With an aggressive, multipronged strategy,
Nokia avoided any cell phone production loss.
• In contrast, the low-level technician who received the information at Ericsson did not notify his supervisors
about the fire until early April and had to scramble to locate new sources for the chips. This search delayed
production.
• In 2010, Ericsson was a much smaller company, at 82,500 employees with plans for further reduction.
• Nokia's handling of its supply chain disruption provides a dramatic example of how a company's strategic risk
management can alleviate financial disaster
PROBLEM IDENTIFY

• Problems at Philip’s end: Supply Chain Interruption


Fire breakout in Philip’s clean-rooms:
Inability to determine the exact damage to clean-rooms:
Inability to determine their ‘time for normal production resuming’
Lack of emergency preparations
• Problems at Ericsson’s end
Weak crisis judgement.
Failure to take prompt actions in time
Single supplier reliability
NOKIA’S ACTION TO STABILISE SUPPLY CHAIN
MANAGEMENT

• Early speculations of possible crisis


• Preparedness against supply crisis
• Finding alternative source of chip supply

ERICKSON’S ACTION AND NEGLIGENCE


• After the problem Ericsson took Weak crisis judgement
• Depended only on single supplier. Which led the production got late and therefore harmed the Ericsson
productions.
• Due to the Failure Ericsson than took direct actions and impacted by losing market share.
• The low level technician received the first hand information at the Ericsson about the fire but he didn’t flow this
information until April to his supervisors. Lack of coordination and no two way communication present.
RECOMMENDATION

ERICSSON NOKIA

• Identifying the new sources of implication • Get the support of application developers
Quickly • Nokia needs to pay more attention to other market.
• Better safety equipment required in plant. • They need to also develop and find the ways to improve
• Strategies should be implemented to keep the product and make some innovations that are going to wow
track of suppliers like Nokia. people.
• According the situation applied the backup plan. • Time to time update your technology feature for the
coming future.
• Absence of info can source a lot of problem in
the long run. • Nokia should be build a strong network.

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