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Nokia At the time of the 2000 fire in Albuquerque, Nokia was another leader in the communications industry, with revenues of $20 billion, more than
Nokia At the time of the 2000 fire in Albuquerque, Nokia was another leader in the communications industry, with revenues of $20 billion, more than 70 per cent of which came from mobile telephones. It also used the Philips factory as a source of chips, and between them Ericsson and Nokia bought 40 per cent of its production. But Nokia's reaction to the problem was much faster and more positive than Ericsson's. In the 1990s Nokia had suffered from shortages of components that limited production and cost millions of dollars in lost sales. It took various measures to stop this happening again, including the appointment of a 'supply chain troubleshooter' who identified problems and sorted them out as quickly as possible. And it carefully avoided single-sourcing key components. Its proactive risk management meant that Nokia did not have to wait until Philips told it about the fire, but its 'events management system' quickly noticed a hiccup. The company immediately contacted Philips, and within hours of hearing about the fire had assembled a team to assess problems, find ways around them, monitor conditions and offer technical support. More directly, it put pressure on Philips to divert capacity in other plants to maintain its supplies - and it negotiated with other suppliers, redesigned chips so that other companies could make them, and redesigned products to use slightly different chips. Nokia used its considerable influence to get everyone's cooperation. Alternative Japanese and US suppliers were delivering new chips within five days, and 10 million chips were supplied by other Philips factories in Eindhoven, the Netherlands and Shanghai, China. As a result of its actions, Nokia's production was hardly affected by the fire
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