Indirect Sourcing
Communications Set
for Nokia Internal
Use
Company Confidential
Nokia Internal Use Only
Topics
• Indirect Sourcing in Nokia
• What is INS
• The Role of INS at Nokia
• INS Mission and Value Proposition
• Key Processes and Tools
• Sourcing and Purchasing
Nokia Internal Use Only
What is INS?
• INS is a Nokia-wide platform having responsibility for strategic
sourcing and purchasing of Nokia’s indirect products and
services
• INS works in close cooperation with business owners from
different business- and horizontal groups to source and purchase
the right products and services for Nokia’s requirements
• INS develops and implements common processes and tools to
enable efficient sourcing and purchasing
Nokia Internal Use Only
The Role of INS at Nokia
• Influence strategy and processes governing all indirect spend
• All Geographies
• All Business Units
• All Platforms
• Provide indirect purchasing leadership and competence to all functional and
business operations
• Provide professional processes, systems and practices for indirect spend across
Nokia
• Implement cross-functional teams to leverage value from Nokia indirect spend
(shared responsibility)
• Identify synergies across business units and geographies
• Facilitate demand management including excess asset recycling
INS leverages Nokia Indirect spend, increases operating
efficiencies and drives value through supply markets
Nokia Internal Use Only
There are two types of Sourcing in
Nokia
Components for devices
Nokia
Devices and
Service
Products
Software for devices
Software for service products
Content for services
Direct
R&D subcontracting services
Hosting services
Marketing services
Nokia
Business
Support
Processes
IT Infrastructure
IT Technology (HW and SW)
Travel, Facilities
Professional services (external
resources)
Customer Care (contact centers, repair)
Manufacturing and Test Equipment
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Indirect
What does this mean in practice?
• INS is responsible for making sure that Nokia employees can purchase the goods
and services they need to run Nokia’s day-to-day business.
Travel
Facility
Services
External
Resource
s
Marketing
IT Hardware,
Software &
IT Consultancy
Operator
Services
Care
Manufacturing
and Test
Equipment
Common
Processes
and Tools
Services
• INS works closely with Nokia business groups to locate and purchase the right
products and services for their requirements.
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INS Geographic breakdown
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INS locations
INS Purchasing Center
Our Mission
To improve Nokia’s business performance
through excellence in spend management
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INS Value Proposition
Create Value
Category Strategies
Ensure Value
Purchasing
process
Create
Sourcing Process
Approve
Receive
Enhance Value
Supply Base Management
Pay
Compliance
Processes / SOX
Strategic Relationship
Management
We work with our stakeholders to ensure value is delivered
Company Confidential
9
© 2008 Nokia
Nokia Internal Use Only
Sourcing and Purchasing
•Key INS Processes are Sourcing and Purchasing processes that
are part of Nokia source to pay process
•INS has both Sourcing and Purchasing resources
source to pay process
Sourcing
Purchasing/
Transaction
Invoice
Processing
Payment
SAS Processes
INS Processes
Nokia Internal Use Only
Sourcing process
Scope definition
Prepare &
Engage
Analysis and Planning
Drivers,
Impact &
Risk
Internal
Information
External
Information
Analyse &
Develop
Approach
Triggers
Manage
Implement
Negotiate &
Contract
Operational Management
Evaluate
Supply Base
Negotiate & Contract
Nokia Internal Use Only
Purchasing Process
Create
Purchase
Request in
myNP
End User /
Requestor
Confirm
“Goods
received” when
goods have
arrived
Complete
pricing
and
Supplier
selection
Approve
request and
and additional
Approvers as
needed
Send
Purchase
Order to
Supplier
INS Buyer
Approver(s)
INS Buyer *
Across Nokia,
web-based
my Nokia
Purchase tool
is used for
Purchase
Orders
End User /
Requestor
* Optional or Automatic
Nokia Internal Use Only
my Nokia Purchase looks like this..
Create - New order. Product and Service Catalogs
My Requests - Own Active Requisitions
Approve - Requisitions that are waiting for approval
Receive – Confirmation and Receiving of an Order
Explore - Own Requisitions & Approvals. Catalogs etc.
Ariba(MyNokiaPurchase) access:
http://www6.connecting.nokia.com/nho/opereso.nsf/document/ES387DHB6R?OpenDocument
Nokia Internal Use Only