Global Supply Chain Innovation Summit Digital Integration from Order to Manufacturing and Delivery
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1 Global Supply Chain Innovation Summit Digital Integration from Order to Manufacturing and Delivery Thursday, 3 November, :50 14:40 Laurent Carré Mobile Networks COO Supply Chain and Procurement Engineering Head of Emerging Business Supply Chain Engineering Nokia Nokia is sharing how the new Mobile networks products and markets requirements are driving new requirements for the supply chain. The Nokia supply chain vision for is briefly exposed. As an example, the way the production for customized products has been digitally integrated from order to manufacturing and delivery. 1 Nokia 2016
2 Global Supply Chain Innovation Summit Digital integration from customer order to delivery Mobile Networks November Nokia 2016 Public
3 A long history of successful change Mobile devices 1871 Siemens Com Motorola Solutions Panasonic Networks Alcatel-Lucent 3 Nokia 2016
4 A strong financial leader in Telecommunications Business The business characteristics for operations: Volatility Uncertainty Complexity Ambiguity 4 Nokia ) Combined Nokia and Alcatel-Lucent 2015 numbers according to Nokia accounting policies, non-ifrs 2) All figures and positions reflect market share, based on combined Nokia and Alcatel-Lucent 2014 year end results
5 Nokia Mobile Networks Undisputed # 1 position in the mobile networks ecosystem Sustain #1 position in radio market which likely show further consolidation Sustain #1 position in converged and virtualized core in an increasingly competitive market environment Grow revenue & strengthen #1 position in profitability for services Create opportunities in new market segments requiring connectivity (human, factories, retail, offices, vehicles, cities,..) 5 Nokia 2016
6 The mobile networks journey: yesterday, today & tomorrow Mobile Voice Smart phone revolution VoLTE, VoWiFi Private LTE, Public Safety Internet of things 2G 3G 4G/LTE HetNets Single RAN & Small Cells Licensedunlicensed (WiFi) Network Function Virtualization Telco Cloud 5G 6 Nokia 2016
7 Expanding from traditional to new markets Mobile Broadband Macro and Small Cell mass market Licensed and unlicensed bands Public Sectors Public Safety Fixed Wireless Access FastMile solution Content Providers Mobile edge computing Transport GSM-R Air To Ground Data center interconnect DIVERSIFICATION Core and radio for IoT Connectivity platforms & applications Dedicated LTE features Smart Cities Private LTE networks, Small cells, Wifi solutions, Solutions for zone applications AirFrame data center solutions IoT use cases, e.g. Car2X Large enterprise and Utilities Private LTE networks Network in a box MWR transport Small cells and WiFi AirFrame data center solutions 7 Nokia 2016
8 Together we make technology human Building connectivity everywhere for everybody Making our lives safer and ensuring reliable solutions for first responders Bringing solutions to other industries while maintaining carrier grade standards Enabling the Internet of Things with contextual applications and the needed connectivity 8 Nokia 2016
9 Home broadband connectivity in areas where it is slow or missing FastMile Designed to overcome the connectivity gap and bring much-needed high-speed broadband to residential customers in sub-urban or rural areas Internet 20% of households in developed countries and as much as 66% of households in developing countries do not have internet access* Solution overview Residential outdoor modem with self-tuning high gain antenna Residential indoor router with Wi-Fi / GigE Specific fixed mobile RAN antenna topology Smartphone applications that help ease deployment and management Cloud-based controller running on Nokia AirFrame to monitor the network and ensure minimum guaranteed throughput for all users 9 Nokia 2016 *International Telecom Union ICT Facts and Figures
10 Small cells and Wi-Fi Outdoor small cells Indoor small cells Unlicensed Residential and Small Enterprise Mini macro Indoor Multi-Band Wi-Fi FastMile Low power RRH Distributed Antenna Systems MulteFire LTE / WiFi aggregation Home femto Wi-Fi Boost Mobile Edge Computing Liquid Applications and zone applications, e.g. stadium experience 10 Nokia 2016
11 Major business trends for Supply Chain 1. More local medium-sized customers 2. More digital products and commoditized hardware 3. Supply chain used to generate additional revenue 11 7 Nokia 2016
12 Nokia Operations Vision Align with your company strategy and leverage your capabilities through best in class operations organization Position Nokia Operations as #1 in the industry by implementing real time digital operations 12 Nokia 2016
13 Gartner Top 25 Supply Chain Ranking of Nokia in 2016 Number 28 overall Number 7 in High Tech sector Improving 73 positions Year-over-Year 13 Nokia 2016
14 Nokia Operations future eye A dedicated framework to implement the future capabilities and enablers to execute strategy and transform to new level of excellence Integrated Business Planning & Execution Customer Value Collaborative Supplier Eco- System Growth Conscious Factory & Engineering Advanced Customer Experience Real-time order confirmation incl. active creation of business opportunities based on analytics Flexible, fully automated production line capable of producing anything through "dialogue between machines Artificially intelligent Demand-Supply-Network with ideal inventories Self-optimizing and automated distribution enabling real-time delivery Cross-industry sharing of complete supply chain infrastructure Real time supplier interaction via Virtual Category Room to foster ecosystem Adaptive Value Chain Design Digital Workforce Digital Process Prescriptive Automation 14 Nokia 2016
15 Nokia Small Cells Specific Market Requirements Look & Feel customization for Home Cells - Case branding - Full custom design for large volumes - Localized power supplies Network security features - Network settings for initial connections - Customer specific certificates - Hacking prevention by non modifiable hard coded operator specific settings and destructive case opening 15 Nokia 2016
16 Nokia Small Cells Supply Chain Supply Chain and Commercial constraints More than 100 customers worldwide - Each with a unique set of security parameters - With more than 60 different custom casings Several security features available Factories in China and Europe Short delivery lead time expected 16 Nokia 2016
17 Nokia Small Cells Supply Chain Digitalization Digitalization The implementation vision Autonomy Automation Full flow automation Direct communication between all systems via EDI Integration of customization bench on the shop floor Integration with logistic Team addressing the full scope Breaking the barrier spirit Agile incremental development Commitment to success Mode 2 operations Security Critical information only controlled by Nokia employees Security parameters programming transparent to manufacturing contractors No manual information handling Commitment to success Secure delivery to customers 17 Nokia 2016
18 Nokia Small Cells Supply Chain Digitalization Secured custom production flow overview Factory Customer Security data Nokia Secure Server Security programming ASN Nokia ERP EDI EMS Factory MRP EMS Factory MES 18 Nokia 2016
19 Nokia Small Cells Supply Chain Detailed factory interaction Nokia IT Nokia PO Nokia Secure Server MRP PO Customer Parameters S/N Post Production Server 19 Nokia 2016 MES Nokia- Programmation bench Customer Data Repository
20 Trigger Nokia Small Cells Supply Chain Digitalization The delivery flow Factory environment Https download Extranet server Post Production Server Customer Shipping notice / invoice ASN Nokia ERP MRP (EMS) Physical delivery: direct or via hub/vmi 20 Nokia 2016
21 Nokia Small Cells Supply Chain Digitalization The project and the team Team composition - Solution architect (full time) - Security feature specialist - Supply Chain and ERP/EDI specialist (full time) - Production process specialist - Software developer Project organization - Analysis and definition phase - Implementation first phase - Implementation second phase - Implementation 3 rd phase 21 Nokia 2016
22 Nokia Small Cells Supply Chain Digitalization Feedback and conclusion The number of interfaces and stakeholders is the key complexity to handle - Defining interworking between various IT systems and companies is a very significant effort EDI implementation for non full standard features takes time - This has been the main source of delays for the overall project A focused, agile, motivated and multi-disciplinary team has been the key for the success - Going the traditional way would not have worked as this kind of project is not matching any standard process as it integrate product development, supply chain and IT 22 Nokia 2016
23 If you keep doing what you always did, you ll keep getting what you always got! Thank you! 23 Nokia 2016 <Supply Chain Innovation Summit 2016
24 Your questions? 24 Nokia 2016 <Supply Chain Innovation Summit 2016
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