NOKIA BATTERY RECALL
LOGISTICS CASE
NISHU GUPTA- 500051779 Nihal Ambasta- 500051158
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 Hyderbad, 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 demand-driven
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 cartoons 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 (contd)
• 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)
Conclusions
• Nokia was concerned about its customers.
• It didn't wants to loose its goodwill in
international market.
• Thus replacement of batteries took placed
as soon as complaint launched.
THANK YOU!!!!!
