Nokia (Dongguan) Logistics Centre Project

Nokia (Dongguan) Mobile Phone is an important manufacturing base of Nokia in China. It is also one of the major contributors of Dongguan’s industrial production, exports and tax revenue. To establish a highly effective and flexible logistics management and operations system has become an integral component of the company’s competitiveness. Therefore, to further sharpen its competitive edge, Dongguan Nokia began to enhance the management of its logistics and supply chain since 2003. It decided to seek the help from a qualified fourth party logistics company to consolidate resources available from the community, as well as to design the best logistics centre for the project. After stringent selection, the BPS Global Group was appointed as the partner to take up the role of fourth party logistics provider in the system’s construction, providing critical logistics consultancy service for the project.

As the State’s leading logistics solutions provider and professional logistics consultancy service provider, the Group addressed the high level requirements of Nokia, through flexibly applying its experience and knowledge in international logistics and modern supply chain management and its strong technological platform since the project commenced in January 2003. Consolidating resources from different parties, the company also adopted an advanced radial design concept with reference to the latest policies of the State and the Customs. As a result in merely 5 months, BPS completed the country’s most advance modern VMI warehouse and distribution centre with bonded facilities, which then commenced official operation in July, becoming Nokia’s second most important logistics centre in China after the Xingwang Industrial Park in Beiijing.

Project Summary

The completion of this logistics centre became a first logistics park in China that adopted an operation model featuring combined warehousing for bonded imports and monitored exports. With an advanced information management system, the centre realized the integration of goods flow, capital flow and information flow. Overall solutions such as VMI (Vendor Management Inventory) and JIT (Just in Time) were also realized. From the reflection of clients, the operation model significantly reduced the logistics costs and operational risks of Nokia Dongguan, while notably improved the operational efficiency of logistics, which in turn enhanced the market competitiveness of Nokia products.

In fact, according to Nokia Dongguan, ever since the new logistics centre solutions was adopted, traditional departmental collaboration changed from the progressive model to a webbed model, incorporating the processes of raw materials procurement, production, distribution etc., so that more flexibilities are made possible in division of labour and collaboration. Standalone bonded warehouses or distribution centres could never have met the requirements of Nokia. The solution designed by the Group, however, can provide synchronized and integrated effects, improving the overall operational efficiency of the company, so that it can be more focused on its core businesses such as design and manufacturing.

Phase 2 of the Nokia Bonded Logistics Centre came into operation in August 2005.The outcomes have been running ideally in every aspect. Project investors and third party logistics providers integrated into the project all benefited a lot from the centre through cooperation, making this one of the most successful cases in which enterprises could integrate resources, complement strengths and achieve multiple wins through a fourth party logistics provider.