Public

Nokia Corporate SecurityManufacturers perspective in applying

security practices in the supply chain

Thorsten Neumann

Head of Corporate Security CEMEA

Head of Global Supply Chain Security

&

TAPA EMEA Chairman

2

Agenda

• Nokia Corporate Security• Mission & Organization

• Awareness, Training, Communication & Partnership

• Risk & Challenges

• Loss Data, Statistics & Examples

• Nokia “Build on trust” program

• Summary

Safeguard Nokia's People and

Business through Customer focused,

optimisedworld class security

services

Safeguard Nokia's People and

Business through Customer focused,

optimisedworld class security

services

Corporate Security Mission

3 © 2008 Nokia Public

4

Why Should

I

Care?

Corporate Security

Information, Communication & Awareness

© 2008 Nokia Public

5 © 2007 Nokia Corp SecurityConfidential

Why are we the target?

• Value of products• Technology goods, watches, MP3’s,

high value cloth and shoes

• Not just functional items anymorethey are part of our lifestyle

• Risks of the supply chain• Organized criminals and gangs

operating worldwide

• Targets: high value and luxury goods, easy to get, easy to sell

• Stolen products can be replaced –missed sales opportunities can not be recovered!

6 © 2007 Nokia Corp Security

Understanding Product Liability & Risk Transference

Warsaw Coverage Warsaw + Mitigation Countermeasures

50” Sony TV

Cost $ 2500

Warsaw Coverage $ 2754

Microsoft Xbox 360

Cost $ 299

Warsaw Coverage $ 159

Nokia

Cost $ 599

Warsaw Coverage $ 12

7 © 2007 Nokia Corp Security

The High Value Manufacturers => What do we “really” transport?

1 Kg Gold = 15.000 €

1 Kg Gold = 1 Kg High value items

8 © 2007 Nokia Corp SecurityConfidential

SupplierHub

SupplierHub

ODM

ContractMfg.

Supplier

Launch /Proto Build

Product/Process

Definition

Mfg. Cust DC, Retail,

Consumer

AsiaFulfill.

Cust DC, Retail,

Consumer

EMEAFulfill.

NAFulfill.

Cust DC, Retail,

Consumer

LAFulfill.

GLOBAL

PLANNING

Parts

Returns / Service

Parts

Returns / Service

Parts

Returns / Service

Parts

Returns / Service

Suppliers

Mfg.

Mfg.

Mfg.

Mfg.

Every point of transfer, change of possession or manner of conveyance represents an opportunity for loss, damage, misdirection or theft.

The consistent application of sound security standards, the timely and accurate reporting of losses and the expeditious movement of product improve on-time delivery and customer satisfaction.

Product at Rest is Product at Risk.

Supply Chain Today => Controllable Risk?

Mfg.

Cust DC, Retail,

Consumer

Awareness , Training, Communication

&

Partnership

9 © 2008 Nokia Public

Czech/Polish border, theft from vehicles

South of Italy

Hijack

Malmo/Gothenburg

Hijack/robbery

North of Madrid

Trailer thefts

North Italy: trailer thefts

Luxembourg/Belgium

Theft from trailers

Frankfurt: Fake police, hijacking

M6/Merseyside

Thefts from vehs

Marseilles: theft from vehicles

Paris, warehouse attacks. Fake police, CDG hijacks

London/M25

“Round-the-Corner-Game”

Essex/Dartford

Fake police

Rotterdam/Schipol

Hijackings, Fake police/Customs

Genoa Container Port

Forged documents

Italian rail tobacco thefts

Austria: ware-house attacks

Heathrow: Hijackings, Deception, Collisions,

Fake accidents

Greece: Illegal Immigrants.

Industry Top 10 Loss countries:• United Kingdom• Italy• Germany• France• Spain• Russia

• United States

• Brazil• Mexico

• India

Global LossesGeographical Risk

First Advantage Copyright©

TOP 10

TOP 10

TOP 10

TOP 10

TOP 10

TOP 10

11 © 2008 Nokia Public

Loss Prevention / Security is like an orchestra, it works only in ”WE” all

together mode

NokiaCorporateSecurity

Visibility & Transparency

13 © 2008 Nokia Public

Future Process & Strategy => SCS Tool 2.0?

14 © 2008 Nokia Public

15 © 2007 Nokia Corp SecurityConfidential

Worldwide Loss Ratio‘s

2008 (Industry vs. Nokia)

0,02995 %

0,01625 %

0,0100 %!!OUR GOAL!!

© 2008 Nokia V1-Filename.ppt / YYYY-MM-DD / Initials16

17 © 2007 Nokia Corp Security

The Future

• 2010 will be a record year on incidents for the industry• Loss values will be higher • Crime development trends:

• Simple but brutal• No rules, no ethics• Corrupt• Organized

18 © 2007 Nokia Corp SecurityConfidential

WALT DISNEY

„IF YOU CAN DREAM IT

YOU CAN DO IT.“

1901 - 1966

Thank you!19 © 2008 Nokia Public

Awareness, Training,

Communication & Partnership