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Nokia believes that building superior sales materials is a long-term process. Enterprises should study how to design logistics models and know how to enhance the transparency of products in circulation channels so as to manage channel inventory well with customers. In building these capabilities, it is important to listen and analyz customers' needs，provide efficient and flexible solutions to customers' plans.
4.3 Supply chain customer service strategy
Customer service strategy is also the basic configuration element of supply chain strategy and is indispensable. Nokia is strengthening its ability to meet customers' needs and enrich its services, and it can bring users a direct experience. At present, Nokia customer service organization is implementing its new generation customer service supply and demand network around the world according to the established road map. With the change of global economic environment and the transformation of corporate strategy, Nokia's customer service supply and demand network and the overall supply chain strategy should also keep pace with The Times.
Generally speaking, enterprises that can gain a leading position in the future market must be the cost leader and service leader. And the management of logistics and supply chain can give full play to enterprise capability. On the one hand, material flow from raw materials to customers is planned and coordinated as an integrated system. At the same time, we should make full use of modern information technology to strengthen the links between marketing, network system distribution, manufacturing process and purchasing activities. Only in this way can we achieve better service at lower cost. Nokia's success shows that this can be done.
5. Exist problems
In an increasingly competitive global market, The product life cycle is getting shorter and shorter, and the number of products expands rapidly. Customers have higher requirements for delivery time and expectations for products and services. In this context, supply chain management emerges at the historic moment. Supply chain management utilizes modern information technology to build collaborative business partnerships with suppliers and customers by transforming and integrating business processes, thus greatly improve the competitiveness of enterprises. The market competition in the 21st century is no longer the competition between enterprises, but between supply chains.
5.1 lack incentive to innovate
Nokia's share price has slumped in recent years, hit hard by apple and Google in high-end smartphones. In the middle and low end of the market with the competition with domestic mobile phone manufacturers, it can be said that the enemy on the stomach. Although Nokia has maintained more than 40 per cent of the global handset market and a higher share of the smartphone market, it has lost its incentive to innovate. In terms of technological innovation, Nokia has lagged far behind apple.
5.2 Product, r&d, marketing strategy and enterprise development strategy problems
The current mobile phone development trend cannot be followed on the product, the screen is small and the mobile Internet is weak. In research and development, Europeans cannot quickly launch products in the face of changes in the mobile market. In terms of enterprise development strategy, although the transformation of OVI and Internet has been announced, it has not been fully prepared, mainly because the mobile phone platform cannot carry such an Internet plan.
5.3 Problems in the supply chain
Nokia faces the challenge of the traditional supply model and the supply chain is too long. High inventory cost and high inventory risk; Slow market reaction; the logistics transportation cost is too high (the air transportation proportion is high), the application procedures are complex and so on. As the number of spare parts purchased every year is very large, supply management becomes the core issue of manufacturing and cost control.
6. Supply chain advice for Nokia：
6.1 Strict supplier selection and localized procurement
Quality and cost have always been the focus of business attention. Nokia, a world-class company, is no exception. In terms of purchasing, Nokia needs to take good quality first through strict supplier selection and rely on large-scale localized procurement to reduce costs.
6.2 Effective inventory strategy
Nokia needs to centralize all its suppliers to a single data platform, and information is shared between businesses. It can query the inventory status of Nokia in real time and adopt the automatic replenishment system. Supported by advanced information network systems, with Nokia as the core, the visibility of the supply chain is significantly enhanced. The decrease of the total inventory of the chain reduces the cost, so the competitiveness of the whole chain is improved.
6.3 Respond quickly to changing customer expectations
Build strategic partnerships to increase customer satisfaction can enable core enterprises to accurately and timely understand the needs of end consumers through distributors.
6.4 Quick response to the market
In order to respond to the market quickly, in addition to accurately grasping the market demand, it is also necessary to ensure the close cooperation between enterprises at all nodes and realize the seamless connection of the supply chain. This requires strategic partners to have expertise to respond quickly to downstream needs.
6.5 Reduce supply chain uncertainty
To reduce the uncertainty of strategic partnership in the supply chain, enterprises need to trust each other. Both demand information and supply information can be shared on the supply chain through the information system.
6.6 strengthen partnerships with enterprises
In the process of cooperation, Nokia and its partners should focus on the competition strategy and conduct extensive cooperation in product r&d, supply management, quality management and production planning；Through to the personnel, information and process integration and optimization of the configuration, fundamentally improve the production, research and development, management and resource use efficiency, thus greatly enhance the core competitiveness of the Nokia and its partners ─ ─ collaborative supply chain competitiveness.
6.7 Adopting the direct supply model
On the one hand, it is beneficial for Nokia to grasp more accurate information of end-user demand. On the other hand, by reducing the level of distribution channels, the distribution cost can be reduced and the efficiency of the supply chain can be improved.
7. Conclusion
A new era has come. The scientific and technological revolution has led to the high integration of knowledge and economy. Nokia's rival is not only a Samsung, SONY Ericsson, MOTOROLA these traditional mobile phone maker, added more Apple, research in motion (RIM), such as the mobile phone industry new entrants, and Microsoft, Google, yahoo, these coveted croc mobile software and Internet services.
In the increasingly fierce competition in the background, for Nokia, only the building combines the Internet, media, mobile phone mobile terminal and its solutions, to consolidate the supremacy in the field of mobile phones. This is a challenge and an opportunity for Nokia to keep itself ahead of the new era by rapidly and appropriately changing its supply chain. Nokia can only improve its supply chain management and transform and integrate its business processes with modern information technology, and establish collaborative business partnerships with suppliers and customers, to improve the competitiveness. The market competition in the new era is no longer the competition between enterprises, but between supply chain and supply chain.
8. Reference
1. Cecil Bozarth (2016), Introduction to Operations and Supply Chain Management, Global Edition, Pearson
2. Martin Christopher (2016), Logistics and Supply chain management, FT Publishing International
3. Nokia Corporation (2018) ,available at https://baike.so.com/doc/1237745-1309111.html [accessed on 9th June 2018]
4. John Mangan & Chandra L. Lalwani (2016), Global Logistics and Supply Chain Management, John Wiley & Sons
5. Robert B．Handfield (1999), Supply chain management, Prentice Hall
6. Sarkar (2017), The Supply Chain Revolution: Innovative Sourcing and Logistics for a Fiercely Competitive World, AMACOM
7. Sunil Chopra (2015), Supply Chain Management: Strategy, Planning, and Operation, Global Edition: Strategy, Planning, and Operation, Pearson
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