Case Analysis of Nokia BL 5C Battery Logistics Recall in India

1. A Bomb In Your
Pocket ?
By:
Preeti Gulati

2. HISTORY OF NOKIA

6. BATTERY RECALL CASE
 46 Million Defective BL-5C Batteries were




Recalled
August 14 , 2007 – January 1,2008 (Product
Advisory )
Media Assault & Nationwide Panic
Phenomenal Level of Efforts at each level
95% Batteries Replacements but Not 100%

7. OPERATIONS AT NOKIA

8. • In 2006 , Very Complex Supply chain Handled
900000 mobile devices per day
• 100 Billion Components
• Since 1995 , They were trying to create 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 .

9. Challenges for Logistics Management
 Topography of India
 Varying Customer Habits
 Diversity of Languages
 Diversity of Customs
 Highly congested Airports , ports and roadways .
 Inadequate warehousing & Distribution facilities
 Different Tax regimes & Bueareacratic Control

10. SOLUTION TO CHALLENGES
 Nokia Established Its Own Storage &
Distribution Facilities .
 Third Party Logistics (3PL ) service was taken
into Consideration to resolve the Logistics
Issues

13. STEPS TAKEN AT NOKIA
 Online Check-In by Keying the Battery Number
at Co Website .
 If battery is Affected it could be sent to
Customers address in 15 days
 Thought a Small Scale Operation

15.  Media Furor Raised
 Sensational panic
 Online Checking was not Effective in Rural India .
 To Avoid this Panic 2 separate teams were formed :
 Crisis management
 Logistics Management
 A local Solution was required to solve this

16.  A SMS ( short Message Service ) was Activated so that
Customers could text the battery Number .
 If Battery is Affected another message was send giving
Address Details .
 Also Batteries were send to CCCs & RDs in case of Directly
Coming customers .
 More than 3 million requests were filed within the week
 Toll free helpline was started but still it became an out of
reach Issue for Nokia .

17.  The Batteries Started Coming from : Chennai , Singapore ,
Dusseldorf
 Blue-Dart Couriers were not able to handle large volumes
 Contacted with DHL ( parent company of Blue-dart ) & set
flat rates .
 DHL set a makeshift packing and shipping facility .
 40 employees from DHL Crew
 Consultancy was Taken , 80 Temporary more workers were
hired .

19.  Reverse Shipment
 Environmental Concerns were Prevented
 Customers were supposed to sent back the
Affected battery in the same courier bags of DHL
& Blue Dart .
 4 Months Recall Operations – Ended in December
2007 .