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Stage 3：External integration. Stage 3 extends Stage 2 supply chain management practices to customers and suppliers. The enterprise has identified the strategic customers and suppliers of the supply chain, and can cooperate with the strategic partners of the supply chain to share the key processes and data information needed to support the business process of the enterprise.
Stage 4：End-to-end integration of supply chain. Customers and suppliers work together to develop mutually beneficial strategies and real-time performance goals that are compatible with each other: using IT to automatically integrate cross-enterprise business processes to support supply chain strategy. This is the advanced stage of supply chain management, which requires long-term unremitting efforts.
As can be seen from the above stage of Nokia's supply chain practice, with the development of economy and technology, the scope of supply chain is expanding. The number of partners in the supply chain is increasing, and the length and difficulty of management of the supply chain are also increasing. This requires enterprises to keep pace with The Times, integrate themselves into the supply chain, constantly innovate themselves, keep up with the needs of The Times, and then make progress. As can be seen from the above four supply chain practice stages, this is exactly what Nokia does.
3.2 Supply chain structure, supply and demand planning and information management
The design of the supply and demand network, the formulation of plans and the management of information combine the entity resources and information. Jointly drive supply chain execution at the planning level (Sarkar, 2017). If something goes wrong at the planning level, for example, the design of physical network is unreasonable, the accuracy of supply and demand planning is low, or the processing and transmission of supply and demand information in the supply chain are seriously distorted, Adverse effects and consequences are quickly seen at the execution level. It can be said that a good supply chain is above all determined at the planning level.
3.2.1 Nokia supply chain structure
Nokia has been improving and strengthening its ability to design and manage supply networks and to build its own supply networks in the light of the growing and changing mobile industry. Nokia's strategy in the supply chain structure is to rationally set up and allocate global resources, and ensure that it strives to increase the added value of its products on the basis of cost leadership, so as to meet the requirements of customers in various markets. For example, the establishment of the factory in 2006, India is highly advantageous to make use of local favorable policies and human and land resources to reduce operating costs, at the same time satisfy the growing Indian market demand.
3.2.2 Supply chain supply and demand planning and information management
Overall, the Nokia supply chain supply and demand planning information management system provides a set of business measures in a modular form. The module includes almost all the business functions required by the supply and demand network, and connecting users to technical applications to form a comprehensive system, for strategic and day-to-day management of the company (Bozarth, 2016). The core of this is how to create, communicate, execute, and manage supply and demand plans. Nokia's overall supply and demand plan is based on the advanced concepts of SOP (Sales and Operation Planning). Make full use of modern information technology, such as material requirements planning (MRP). Material Requirement Planning, Enterprise Resource Planning, Advanced Planning and Scheduling, Supply Chain Planning and other reasonable structures. The supply chain supply and demand planning system strongly supports the daily and weekly planning and implementation activities. Effectively ensure the production and customer delivery accuracy, the whole system with good functionality, integration, flexibility, and openness (Mangan & Lalwani, 2016).
3.3 Supply chain purchasing strategy
The purchasing strategy of the supply chain plays a prominent role in the mobile phone manufacturing industry, even as the core competitiveness. It has the first impact on the cost of products and the sustainability of manufacturing. Because phones have so many and complex components from communication chips to transceivers to batteries, it cannot be made by a single manufacturer，it is necessary to streamline all aspects of the supply chain and maintain close cooperation with suppliers so that they can truly become part of themselves. Not only that, for multinational companies, it needs to balance the internationalization and localization procurement. Take into account the requirements of cost and market response speed, and adopt effective best supply chain practices as far as possible, such as e-purchasing, iHUB, VMI, etc.
3.3.1 Strict supplier selection
Quality and cost have always been the focus of businesses, and Nokia, as a world-class company, is no exception. In terms of procurement, Nokia has put good quality first through strict supplier selection. And rely on large-scale localized procurement to reduce costs. Nokia has to evaluate multiple aspects of all its suppliers, such as quality, production operation, supply chain, product development and design process, product responsibility, plant facilities, environmental management and risk management. And strictly operate in accordance with the universal procedures and standards.
Nokia's global procurement system is used in every Nokia mobile phone manufacturing base around the world, and supplier development and material quality are managed by global organization CQTM. In this way, Nokia has extended its quality monitoring and management to the supplier sector, pushing suppliers to provide spare parts, raw materials and other parts in line with Nokia's strict quality standards.
3.3.2 International procurement
International procurement refers to using global resources to find suppliers around the world. Look for the best quality and reasonable price products (goods and services). Most of the electronic components used in Nokia's mobile phone production are purchased internationally. Since electronic materials are generally standard materials, the demands of nine mobile phone factories in the world are combined that can form a strong negotiating force in purchasing and gain the price advantage. As a result, Nokia has reduced its procurement costs and increased its operations in terms of supply. This is a typical example of a cost competitive advantage achieved through centralized and large-scale procurement.
3.3.3 Local procurement
Nokia implements localization purchasing strategy, mainly assembly and packaging parts. The localization purchasing strategy has saved a lot of transportation costs, greatly reduced the cost of Nokia products and shortened the delivery time. It is convenient for timely feedback of information and can gain the price advantage, so as to help Nokia gain a firm foothold in various markets.
3.3.4 Vendor production is clustered
Under the development trend of economic globalization, it is an important factor to determine whether an enterprise can stand out from the competition whether it can keep track of market changes in time and meet customers' individual needs. The establishment of Beijing star network (international) industrial park has enhanced Nokia's rapid response capability. Being able to face unpredictable demand changes in a leisurely manner and effectively reduce supply chain links is conducive to frequent small batch delivery. Its overall operation mode is a typical enterprise cluster based on supply chain. On the one hand, it can reduce the internal manufacturing cost; on the other hand, it can reduce the transaction cost between enterprises, and gain the competitive advantage in cost as a whole.
3.3.5 Effective VMI inventory strategy
Nokia has built an iHUB near each plant. And bring all suppliers together into a single data platform, enterprises have realized the sharing of logistics demand and supply information. Through this information platform, suppliers can query the inventory status of the logistics center in real time. Adopt automatic replenishment system, according to Nokia production material consumption situation timely replenishment，and the process becomes more transparent. Supported by advanced information network systems, with Nokia as the core, the visibility of the supply chain is significantly enhanced. The overall inventory of the supply chain decreases the cost, so the competitiveness of the whole supply chain is improved.
4. Supply chain customer channel strategy
4.1 Build a variety of three-dimensional distribution system
Generally speaking, different market segments require different supply chain processes, assets, channels, supplier relationships and performance evaluations. Therefore, together with pricing Strategy, supplier financial policy, promotion Strategy and other trading terms and conditions, the Total Channel Strategy is formed. And multi-level marketing channels have not caused the increase in product prices, because Nokia also adopted direct supply to achieve flat channel construction. In today's transition to an Internet company, Nokia is also actively practicing and innovating online sales and sales model of flagship experience stores.
4.2 Build excellent sales logistics
As is known to all, logistics is an indispensable and important activity in modern business. At Nokia, its logistics activities run through the end-to-end process, as shown in the chart below:
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