The document summarizes Nokia's journey towards digitizing its supply chain. It discusses Nokia's acquisitions and divestments over time as it transformed from early Bell System products to mobile phones and networks. It outlines Nokia's vision to create a sustainable digital value network centered around the customer. Key facts about Nokia's global distribution operations are provided, and future requirements for digitalizing processes like transportation booking and payment by 2022 are outlined. The document emphasizes digitalization, analytics, robotics, and transparency to create an adaptive and agile 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?

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