As Nokia’s supply chain risk management strategy has matured, they’ve seen three important benefits.
#1: Identification of Complexities and Bottlenecks
In the beginning, one of the greatest benefits of supply chain risk management for Nokia was the visibility it gave them into their supply chain. As part of launching the program, they created a digital twin of their supply chain, which enabled them to identify complexities, bottlenecks and problems that they hadn’t been aware of.
#2: Sub-Tier Visibility
Thanks to their supply chain risk management program, Nokia now has the ability to track the value stream of one component and follow the upstream and downstream paths of specific suppliers. They have segmented their supply chain into tiers, and have set up their system so that, if a risk event happens in tier two, the Nokia employees responsible for managing the relevant tier one suppliers will also be notified.
#3: Saving Time
Now that Nokia has achieved visibility into their supply chain, their greatest ongoing benefit from their supply chain risk management program is the automatic monitoring for a wide range of risk events all over the world. Without this assistance, Nokia’s risk management operation would have to manually monitor for major events, which would increase workload. This is especially handy when they get requests from leadership about major risk events that have hit the news. The risk management team has now implemented a process where, anytime a major event occurs, they send a status update to leadership in advance of any questions about it. Want to know more about Nokia’s supply chain risk management program? Check out the full case study.
Subscribe now to the riskmethods newsletter and never miss out on new, interesting insights!