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NOKIA BATTERY RECALL

LOGISTICS CASE
Nishu Gupta- 500051779
Nihal Ambasta500051158
Navin Sharma- 500051151
Kanika
Gupta- 500050502
Adithya Ruthvik- 500051119

Contents:

Introduction
History
Detail about the case
Nokia challenge
Solutions
Conclusion

Introduction:
In 2007, Nokia faced a media assault for exploding
batteries of Nokias BL-5C model.
By 1st January, 2008, Nokia replaced 95% of BL-5C
batteries.
46 million defective BL-5C batteries recalled
August 14, 2007 January 1, 2008 (Product Advisory)
The team was led by Sudeep Dhariwal, the logistics
head of Nokia India.

History in India:
Entered INDIAN market in 1995.
Market share in INDIA was 70% in 2004 and
76% in 2006.
Set-up of manufacturing plant in Chennai, year
2006.
R&D centers in Hyderabad, Bangalore and
Mumbai.
More than 500 CCCs and 600 NPDs.
Organized itself in 4 regions- North (Delhi), West
(Mumbai), South (Chennai) & East (Calcutta).

Detail about the case


In 2006, very complex supply chain
handled 900,000 mobile devices per
day
100 billion components
Since 1995, trying to create a demanddriven supply chain linking with the
consumers and host of suppliers
In 2007, in a research Nokia ranked
number one for the excellence in SCM.

Battery Problem
According to comsumer complaints,
Nokia discovered that BL-5C batteries
were likely to swell during charging.
After some analysis, some batches of
batteries produced by Matsushita were
found defective because of overheating.
Then, Nokia management decided to
issue a product advisory.

Recall Strategy
Online check-in by keying the battery
number from the web site of NOKIA
If the battery is affected it would
be sent to customers address
within 15 days

Recall Strategy
SAP Problems,
The batteries were free.
25 different states & different set of tax rules.
Lots of details required.
SAP system did not have a provision for a
zero priced item.
All documents and invoices were done
manually.
All this software obstacles were overcome by
the management within the same day.

Recall Strategy
DHL set up a makeshift packing and
shipping facility.
40 employees from DHL crew.
At least twice as many more workers
needed.
A consultancy was taken,
80 temporary workers were hired

Recall Strategy
Another empty warehouse was rented and
began three shift operation
Unpack cartons each containing batteries
Each battery wrapped in a bubble sheet four
times
Batteries were put in a DHL courier bag with
Not For Sale sticker
The bar codes and courier bags were scanned
To avoid double delivery, each CCC also
captured the number of batteries it replaced

Recall Strategy
Nokia paid a flat
rate to DHL.
Peak Business &
Nokia offered DHL
special incentives
and DHL offer
courier companies
too.

Solutions to the Crisis

Create additional team for logistics management


Use SMS services for replacement procedure:
Create an SMS service so that customers could send
their battery number
Make SMS service free of cost
Send SMS in local languages
If battery was defective ask customers to send their
addresses
Send batteries to Priority Dealers and Customer Care
Centers to directly serve customers
Start a Toll Free Number for helping customers
Hire temporary workers to handle extra work load

Solutions to the Crisis


Tie up with a courier company to deliver products
directly to the customers
Make a provision so that customer can return the
defective product in the same package (to check if
defective product exists and for safe disposal)
Create a system to record outgoing and incoming
batteries
System should help avoid duplicate queries and
also keep tab on batteries replaced
Setup a deadline for replacement operations
(about 4 months)

(contd)

Conclusions
Nokia was concerned about its
customers.
It didn't want to loose its goodwill in
the international market.
Thus replacement of batteries took
place as soon as the complaint was
launched.

THANK YOU!!!!!