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The Nokia Journey To Digitisation of the Supply Chain
1.
© 2018 Nokia1
© 2018 Nokia1 The Nokia Journey to Digitization of the Supply Chain SCL Hub Supply Chain & Logistics Event - London • Barry Dennis, Regional Distribution Manager - Europe • 31-01-2019
2.
© 2018 Nokia2
For internal use
3.
© 2018 Nokia3
Public Disciplined execution for successful integration and transformation Operational excellence and agility 2018201620142012 Acquired Motorola Solutions wireless networks Created Nokia Technologies Pulp, Paper, Rubber, Early Bell System products, Mobile phones Launched Networks transformation plan Sold Devices & Services Acquired Alcatel-Lucent Sold HERE Acquired Gainspeed Acquired Deepfield Acquired Comptel Created Nokia Shanghai Bell Acquired Unium Acquired SpaceTime Insight Awarded 9th Nobel Prize
4.
© 2018 Nokia4 Supply
Chain & Procurement as a key engine for Nokia growth Public
5.
© 2018 Nokia5
Public EMS and Factories are producing thousands of products in a year 6,000 Purchasing volume to our suppliers +14bn € Receiving millions of Sales Orders from our customers in a year ~10,000/day Managing a large supplier base of +14,000 Shipping to every corner of the world ~120 countries Moving thousands of tons of equipment in a year 566t & 3179 cbm/day Managing factories (own and EMS) in 6 regions and 16 countries 24 Delivering through 8 hubs and hundreds of drop off points 210 A vital function for customer satisfaction Supply Chain and Procurement as the beating heart of Nokia
6.
© 2018 Nokia6 Future
Nokia Digital Value Network – Segmented, Connected, Green Starts with the Customer Ends with the Customer Our Vision A sustainable Value Network adopting technology to give a differentiated experience building long term loyalty to Nokia Our Ambition Become #1 supply chain & procurement operations in the industry, leveraging digitization towards Industry 4.0
7.
7 © Nokia
2019 Global Distribution – Key Facts In 2018 99.9 Over 6 Million order lines processed in hubs Air freight usage (% of volume) Total volume of material moved Global hubs (distribution centers) Partnering with key logistics service providers (LSPs) to deliver transportation and warehousing services. Annual logistics spend to operate inbound and outbound transportation, hubs, DOPs, last mile operation and packaging 1.1M CBM’s 1,234 7 6,500,000 IB 28% OB 16% Drop-off Points (DOPs) in countries Internal Logistics professionals working in 28 countries (incl. NSB) 210 200~490m€
8.
© 2018 Nokia8 Leading
digital operations preparing for the new reality of Industry 4.0 Public
9.
© 2018 Nokia9 Bimodal
strategy planning and execution 2016 2018 20222014 2015 2017 2019 3 2 4 5 Gartner Demand Driven Value Network Maturity Continuous Improvement & Transformation only GOPS Venture Management Operations 4.0 Innovation Partnering & Venture Management Customer Centric Operations Conscious Supply Network Value Adding Eco-system Integrated Business Planning & Execution Enabler: ▪ Adaptive Value Chain ▪ Digital Processes ▪ Future Fit People ▪ Future Fit Business System MN - Time-to-profit Bimodal Nokia in top 10 of High Tech Operations Nokia in top 5 of High Tech Operations Nokia #1 in High Tech Operations Ambition: # 14 # 8 # 3Not listed Gartner Ranking for High Tech: # 6 © Nokia 2018
10.
© 2018 Nokia10 Seamless
Supply Chain management at a glance in a digital & mobile world New level of end-to-end supply chain and operations insights, events and actions
11.
© 2018 Nokia11 Future
X requirements for Transportation booking to payment process Supply Network & Engineering Global Distribution Future X – LSP requirements and expectations Process Steps Current Status Requirement in 2019 Requirement in 2020 Requirement in 2022 Tender booking Multiple OneOTM EDI OneOTM OneOTM Booking Automation & Confirmation 70%+ auto 95%+ auto 98%+ auto 99%+ auto Pick up Confirmation & LSP reference assignment POP within 24 hours of actual event POP within one hour of actual event within 10 minutes of time of event at time of event Milestone updates BMC/ POP/POD within 24 hours of actual event within one hour of actual event within 10 minutes of time of event at time of event Intermediary milestones coverage including Customs in / out not expected >90% >95% >98% Estimated time of delivery coverage >70% >95% >98% >99% Accuracy of ETA / ETD Not measured +/- 1 day +/- 4 hour +/- 1 hour Geo location tracking of last mile shipments not expected 30 minute update 10 minutes updates Real time Digital proof of delivery not expected within 24 hours of actual event within 10 minutes via oneOTM at time of event via oneOTM Invoice creation to Settlement various methods Centralized processes with audit team centralised freight invitation, audit and posting Self-Billing
12.
© 2018 Nokia12 Supplier
= Partner = Customer = Competitor Innovation from everywhere Ecosystem collaboration Digitalization & automation of interfaces Time as currency of the future © 2018 Nokia12 Our new reality
13.
© 2018 Nokia13
© 2018 Nokia13
14.
© 2018 Nokia14 Digital
Customer Operations • Robotics Process Automation • Customer Segmentation • Early involvement in Sell • Digital market place • Intelligent configuration The new digital norm © 2018 Nokia14 Public
15.
© 2018 Nokia15 Conscious
Supply Network • Conscious Factory (FiaB video) • Conscious Warehouse • Conscious Distribution The digital twin challenge
16.
© 2018 Nokia16
For internal use
17.
© 2018 Nokia17 Value
Adding Supply Ecosystem • Open collaboration and sharing • Transparent relationship • Procurement digitalization • Predictive analytics Leverage the ecosystem challenge and make it to a strength
18.
© 2018 Nokia18 Adaptive
Value Chain The D.A.R.T Model • Digitalize • Analyze • Robotize • Transparent © 2018 Nokia18 Public Agile and configurable supply chain segments to react to volatile markets and new digital business models
19.
© 2018 Nokia19 Future
Fit People • From directive to catalyst leadership • From reactive to self-driven learning & development • From hierarchy to network organization • From transactional execution to Entrepreneurial mindset to become Service Oriented Technology is not enough. The key is people, and our ability to engage in a mindset shift
20.
© 2018 Nokia20 20 Click ©
Nokia 2018 Our learnings All centered around the Customer Experience Connected end to end ecosystems key lever to success Easy to say, hard to do 1 2 3
21.
© 2018 Nokia21 Driving
continuous improvement while investing in disruptive innovationsFor internal use A transformation journey towards excellence
22.
© 2016 Nokia22 Questions?
23.
24.
© 2018 Nokia24 Exponential
growth in data with 10x every 2 years, i.e. 90% created in the past 2 years Manufacturing generates more data than any other sector of the economy Only 1% of the shipping containers in the world are currently connected A company can discard 99% of it’s data before decision makers have a chance to use it IoT devices to grow to 25bn, majority in industrial IoT, by 2025 (GSMA prediction)
25.
© 2018 Nokia25 Nokia
partners with industry to build “ Conscious Factory in a Box” Feb 9, 2018, full electronic manufacturing of a printed circuit board & robotic assembly & testing took place The solution, designed in partnership with 11 industrial players, offers a production unit which can be shipped in a cargo container. Nokia, Beta Layout, DHL, Fuji, HARTING, Isel, isoloc, MTEK Consulting, Mycronic, Rehm Thermal Systems, Viscom and 42Q - demonstrated this full capability at the Hanover Messe in April 2018
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