3 Supply Chain Risk Management Benefits Seen at Nokia

The Resilient Enterprise | The riskmethods Blog
nokia-scrm-benefits

August 27, 2019

Nokia launched a supply chain risk management program a few years ago, and they’re already reaping the benefits. Read on to learn more about Nokia’s supply chain and the priorities they had in mind to protect it, and find out three of the benefits they’ve seen from putting their SCRM program in action.

by Sarai Groschopp

As the discipline of supply chain risk management continues to evolve, we at riskmethods like to call out some of the companies that we see paving the way in the space. In this blog, I’m happy to introduce you to Nokia, one of our supply chain risk management leaders.

Of course, I don’t really have to introduce you to Nokia—because you already know them. They develop and deliver the telecom industry's only end-to-end portfolio of network equipment, software, services and licensing that is available globally. Most of you have certainly seen—if not held—a Nokia device. In other words: They’ve got a lot happening.

Not surprisingly, having a lot happening also means that they have a lot to keep track of in their supply chain. Check out the infographic below to get a glimpse into Nokia’s complex operations.

nokia-supply-chain-infographic

In 2015, Nokia realized that the complexity of their supply chain meant that a wide range of events could impact their business, and wanted to make sure that they were on top of any potential risk—so they decided to devote the necessary resources to launching a supply chain risk management program. When doing so, they took two elements very seriously: finding the perfect balance of proactive and reactive mitigation, and making sure they had the right data at their fingertips. (To learn more about how Nokia approached these issues, check out the full Nokia case study.) In the timeline below, you can see how their program evolved over the years.

nokia-timeline

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.

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