NOKIA

TELECOMMUNICATIONS:
REDESIGN OF INTERNATIONAL
LOGISTICS
GROUP 1
Introduction
• Head Quarter: Epso, Finland
Flexibility

• Pursuing the Global Network Model.

Product
• Supplies Telecom infrastructure and systems over 40 countries. Rapid Innovation
Responsiveness

• Large Niche telecom equipment player .

• Complex and deregulated marketplace.

Challenges
 Instituting an account management structure that requires
account manager to serve as an interface customer and all
divisions.. NOT JUST ONE PRODUCT LINE.

 Need for Common support tools

 A logistics system would allow managers to spend more time with

customer and tp perform analysis
Global strategy
MULTINATIONAL
• Local responsiveness and Differentiation
• Foreign Subsidiaries to Operate autonomously
GLOBAL
• Closely Managed Worldwide activities through central control
• Economies from standardized product design, global Scale manufacturing
INTERNATIONAL
• Rapid Deployment of Innovation Worldwide
• Foreign Subsidiaries depend on head quarters for new processes, products and know hows.
TRANSITIONAL
• Simultaneously achieve global efficiencies, local responsiveness and high innovativeness.
Transitional Model: Challenges, and
Opportunities
• Transitional Model is a moving target and is unreachable by most firms.
• Until 1997 Information Systems were tailored to Strategic Business Units
resulting in localized configurations.
• The only global IT application that was truly global was e-mail system
• NTC had basic hardware infrastructure in place (WAN, LAN, hardware, OS,
office Automation tools.
• Connected 4 plants and 40 sales and service centers throughout the World.
• The newly adopted business process approach is seen as a driver for integrated
systems
• Each country will share the same or similar suit of common systems for core
processes
Global Logistics Management: Need
• Customers want Uniformity and Consistency in dealing with NTC’s product Lines
• NTC wants to reduce internal costs to ensure enough resources for business
growth
Operational
Efficiencies

Improve
Quality of Global
Deliveries and Logistics Reduce Lead
After Sales Management Times
Services

Decrease
Inventory Levels