NOKIA BATTERY RECALL

LOGISTICS CASE
NISHU GUPTA- 500051779 Nihal Ambasta- 500051158
Navin Sharma- 500051151 Kanika gupta- 500050502
Adithya ruthvik- 500051119
 Contents:
• Introduction
• History
• Detail about the case
• Nokia challenge
• Solutions
• Conclusion
 Introduction:
• In 2007, Nokia faced a media assault for exploding batteries
of Nokias BL-5C model.

• By 1st January, 2008, Nokia replaced 95% of BL-5C batteries.

• 46 million defective BL-5C batteries recalled

• August 14, 2007 – January 1, 2008 (Product Advisory)

• The team was led by Sudeep Dhariwal, the logistics head of

Nokia India.
 History in India:
• Entered INDIAN market in 1995.
• Market share in INDIA was 70% in 2004 and 76% in
2006.
• Set-up of manufacturing plant in Chennai, year 2006.
• R&D centers in Hyderbad, Bangalore and Mumbai.
• More than 500 CCCs and 600 NPDs.
• Organized itself in 4 regions- North (Delhi), West
(Mumbai), South (Chennai) & East (Calcutta).
 Detail about the case
• In 2006, very complex supply chain handled
900,000 mobile devices per day
• 100 billion components
• Since 1995, trying to create a demand-driven
supply chain linking with the consumers and
host of suppliers
• In 2007, in a research Nokia ranked number
one for the excellence in SCM.
 Battery Problem
• According to comsumer complaints, Nokia
discovered that BL-5C batteries were likely to
swell during charging.
• After some analysis, some batches of batteries
produced by Matsushita were found defective
because of overheating.
• Then, Nokia management decided to issue a
product advisory.
 Recall Strategy
• Online check-in by keying the battery number
from the web site of NOKIA

• If the battery is affected it would

be sent to customers’ address
within 15 days
 Recall Strategy
• SAP Problems,
– The batteries were free.
– 25 different states & different set of tax rules.
– Lots of details required.
– SAP system did not have a provision for a zero
priced item.
– All documents and invoices were done manually.
– All this software obstacles were overcome by the
management within the same day.
 Recall Strategy
• DHL set up a makeshift packing and shipping
facility.
• 40 employees from DHL crew.
• At least twice as many more workers needed.
• A consultancy was taken,
– 80 temporary workers were hired
 Recall Strategy
• Another empty warehouse was rented and began
three shift operation
• Unpack cartoons each containing batteries
• Each battery wrapped in a bubble sheet four times
• Batteries were put in a DHL courier bag with «Not
For Sale» sticker
• The bar codes and courier bags were scanned
• To avoid double delivery, each CCC also captured the
number of batteries it replaced
Recall Strategy
• Nokia paid a flat rate to
DHL.

• Peak Business & Nokia

offered DHL special
incentives and DHL
offer courier companies
too.
 Solutions to the Crisis
• Create additional team for logistics management
• Use SMS services for replacement procedure:
 Create an SMS service so that customers could send their
battery number
 Make SMS service free of cost
 Send SMS in local languages
 If battery was defective ask customers to send their
addresses
• Send batteries to Priority Dealers and Customer Care Centers to
directly serve customers
• Start a Toll Free Number for helping customers
• Hire temporary workers to handle extra work load
 Solutions to the Crisis (contd)

• Tie up with a courier company to deliver products directly to

the customers
• Make a provision so that customer can return the defective
product in the same package (to check if defective product
exists and for safe disposal)
• Create a system to record outgoing and incoming batteries
• System should help avoid duplicate queries and also keep tab
on batteries replaced
• Setup a deadline for replacement operations (about 4 months)
 Conclusions
• Nokia was concerned about its customers.
• It didn't wants to loose its goodwill in
international market.
• Thus replacement of batteries took placed
as soon as complaint launched.
THANK YOU!!!!!