Nokia Corporation also referred to as Nokia, is a Finnish multinational company that was founded in 1865 as a paper mill and is the world’s largest manufacturer of mobile phones. In order to ensure the achievement of the set objectives, organizations require performance measurement which controls checks and balances of the company’s operations. This is the main goal of Nokia’s supply chain management, which is responsible for the company’s supply and demand.
Nokia manages the supply and demand for its products by the use of predictive variability, checking for the products that undergo this type of change in demand since this causes problems in the supply chain. When there is a high demand for products, it results in stockouts, while low demand leads to excess inventory, increasing costs and decreasing responsiveness of the supply chain. All large industries across the world manage their supply and demand chains despite the inevitable chain disruptions. Supply chain management involves all activities related to the delivery of the company’s products to its customers, including collection, sourcing, and assembling of raw materials, to create a final product and distribute it.
Nokia manages its supply of products by controlling the production capacity and inventory. The process is aimed at the reduction of the cost of capacity required to deal with predictable variability of supply, supplier, production firms, distribution partners, sales management offices, credible financial organizations, and consumers. The goal established by the company is to supply its services through wireless communication networks, which is an innovation that fuels its competitiveness in the communication arena as well as its growth.
The success of the Nokia Corporation is associated with its supply chain practices integrated with “intertwined suppliers, manufacturing plants, contract manufacturers, sales and logistic service providers and the ultimate customers”. Through the adoption of a hybrid manufacturing system, Nokia has been in a position to maintain an efficient manufacturing and production management system, which enables the company to keep producing high standards and quality products.
In terms of managing supply and demand, the company’s supply chain has installed creative manufacturing techniques that have enhanced its competitive and comparative advantage. Its wide distribution network has improved its connectivity ability to the majority of its customers worldwide. The company also incorporates the collaboration feature where it joins forces with other suppliers to create an organized supply chain. With the guidance of trust, true information, and good leadership, this supply chain partnership has fueled the success of the Nokia Corporation.
Additionally, Nokia emphasizes the reasons for its ever-high demand for its products based on the efficient demand and supply network. Scholars have borrowed tips from Nokia’s integrated supply chain management, which is fueled by the notion of a fully customer-focused and value-oriented delivery (Chopra, 2020, p. 243). The company’s Supply Chain Management agility is driven by factors such as the promotion of the flow of information between suppliers and consumers, creating dependable logistics partnerships as well as drafting contingency plans.
In summary, the successful operation of Nokia’s supply chain operation is based on such pillars as leadership, trust, and creating value-oriented partnerships with credible suppliers to attain top-notch operational excellence and full customer satisfaction. Primarily, the company focuses on achieving efficient management of products’ supply and demand. “Making the impossible possible through collaboration” is Nokia’s well-known and frequently used motto, which gives its employees and stakeholders the drive to push for success.
References
Chopra, S. (2020). Supply chain management: Strategy, planning, and operation. New York: Pearson.