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    Nokia Battery Recall Logistics Case

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    navinsharma01
    Nokia faced a recall of 46 million defective BL-5C batteries in 2007 due to overheating issues. Nokia's logistics team, led by Sudeep Dhariwal, implemented a recall strategy that allowed customers to check online if their battery was affected and receive a replacement within 15 days. The strategy involved overcoming SAP software limitations, hiring temporary workers, and partnering with DHL to set up a packing and shipping facility to process replacements within the target 4 month deadline.

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    Nokia Battery Recall Logistics Case

    Uploaded by

    navinsharma01
    70 views15 pages
    Nokia faced a recall of 46 million defective BL-5C batteries in 2007 due to overheating issues. Nokia's logistics team, led by Sudeep Dhariwal, implemented a recall strategy that allowed customers to check online if their battery was affected and receive a replacement within 15 days. The strategy involved overcoming SAP software limitations, hiring temporary workers, and partnering with DHL to set up a packing and shipping facility to process replacements within the target 4 month deadline.

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    Nokia

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    Nokia faced a recall of 46 million defective BL-5C batteries in 2007 due to overheating issues. Nokia's logistics team, led by Sudeep Dhariwal, implemented a recall strategy that allowed customers to check online if their battery was affected and receive a replacement within 15 days. The strategy involved overcoming SAP software limitations, hiring temporary workers, and partnering with DHL to set up a packing and shipping facility to process replacements within the target 4 month deadline.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    70 views15 pages

    Nokia Battery Recall Logistics Case

    Uploaded by

    navinsharma01
    Nokia faced a recall of 46 million defective BL-5C batteries in 2007 due to overheating issues. Nokia's logistics team, led by Sudeep Dhariwal, implemented a recall strategy that allowed customers to check online if their battery was affected and receive a replacement within 15 days. The strategy involved overcoming SAP software limitations, hiring temporary workers, and partnering with DHL to set up a packing and shipping facility to process replacements within the target 4 month deadline.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 15

    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!!!!!

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