At the Royal Philips Electronics plant a fire broke out in March 2000, damaging its supply of semiconductor chips. Nokia Corporation and Ericsson LM relied on these sorts of chips to produce their cell phones; together they received 40 percent of the plant's processor production. Both businesses were going to release new mobile phone layouts that necessitated the chips. Nokia's team, had a disaster plan in position, which sprang into action.
With an aggressive, multipronged strategy, Nokia averted any cell phone production loss. In contrast, the low level technician who received the advice at Ericsson did not notify his managers about the fire until early April and had to scramble to locate sources that are new for the chips. This investigation delayed creation and proved a fatal setback to Ericsson's independent creation of mobile phones. The handling of its supply chain disruption of Nokia provides a remarkable example of how financial disaster can be alleviated by a business's strategic risk management and place the basis for success in the future. Perturbations in supply chain management develop harder and more difficult to assess as the market becomes more globalized, and are unavoidable.
Nokia's Supply Chain Management Case Study Solution
PUBLICATION DATE: August 07, 2012 PRODUCT #: KEL673-PDF-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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