© 2018 Nokia1 © 2018 Nokia1
Becoming the operations industry benchmark
European Supply Chain Management Strategies Summit – Berlin, Germany
• Johannes Giloth, SVP Global Operations and Chief Procurement Officer
• 28-11-2018
© 2018 Nokia2
Operations - a key enabler of excellence and growth at Nokia
Public
© 2018 Nokia3 For internal use
© 2018 Nokia4 Public
Disciplined execution for successful integration and transformation
Operational excellence and agility
2018201620142012
AcquiredMotorola Solutions wireless networks
CreatedNokia Technologies
Pulp, Paper, Rubber, Early Bell System products, Mobile phones
Launched Networkstransformation plan
SoldDevices & Services
AcquiredAlcatel-Lucent
SoldHERE
AcquiredGainspeed
AcquiredDeepfield
AcquiredComptel
CreatedNokia Shanghai Bell
Acquired Unium
AcquiredSpaceTimeInsight
Awarded 9th Nobel Prize
© 2018 Nokia5
Future Nokia Digital Value Network – Segmented, Connected, GreenStarts 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
© 2018 Nokia6
A vital function for customer satisfactionGlobal Operations as the beating heart of Nokia
Public
EMS and Factories are producing thousands of products in a year
6,000
Purchasing volume to our suppliers
+12bn €
Receiving millions of Sales Orders from our customers in a year
~9,000/day
Managing a large supplier base of
+25,000
Shipping to every corner of the world
~120 countries
Moving thousands of tons of equipment in a year
530t/day
Managing factories (own and EMS) in 6 regions and 16 countries
24
Delivering through 8 hubs and hundreds of drop off points
220
© 2018 Nokia6
© 2018 Nokia7
Leading digital operations preparing for the new reality of Industry 4.0
Public
© 2018 Nokia8
… the next wave is all around customer centricityAll Supply Chains going through different maturity levels
Public
The
profitability
battle
Integrated lean
Supply network
Increased
agility
requirements
Demand driven value
network
Digitalized and customized
value network
Customer
centricity
© 2018 Nokia8
© 2018 Nokia9Nokia 2018
Customer Centricity drivers
Conscious
Supply
NetworkValue Adding
Supplier
Ecosystem
Adaptive
Value
Chain
Digital
Customer
Operations
Integrated
Business
Planning
Future Fit
People
© 2018 Nokia10
Digital Customer Operations
• Robotics Process Automation
• Customer Segmentation
• Early involvement in Sell
• Digital market place
• Intelligent configurationThe new digital norm
© 2018 Nokia10 Public
© 2018 Nokia11
Integrated Business Planning
• Orchestrate in Real Time Supply Chain
Network from customer up to 3rd tier
supplier
• Cross functional
• Cost To Serve focused
• Automated and event based decision
making
Integrated and agile
business planning
throughout the entire
product lifecycle
© 2018 Nokia12
Conscious Supply Network
• Conscious Factory (FiaB video)
• Conscious Warehouse
• Conscious Distribution
The digital twin challenge
© 2018 Nokia13
Value Adding Supply Ecosystem
• Open collaboration and sharing
• Transparent relationship
• Procurement digitalization
• Predictive analytics Leverage the ecosystem
challenge and make it to a
strength
© 2018 Nokia14
Adaptive Value Chain
The D.A.R.T Model
• Digitalize
• Analyze
• Robotize
• Transparent
© 2018 Nokia14 Public
Agile and configurable
supply chain segments to
react to volatile markets
and new digital business
models
© 2018 Nokia15
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
© 2018 Nokia16
Driving continuous improvement while investing in
disruptive innovationsFor internal use
A transformation journey towards excellence