Homework – Assignment Example
1. Nokia feels proud in outlining values and standards that offer a sense of direction to its supply chain management (SCM). These values are the foundation of its operational mode and help it foster cross-functional and cross-organizational communication with investors, employees, clientele and partners, by spreading reliable and high quality business practices worldwide. Nokia has developed sustainable, cost-oriented supply chain programs that encourage proper collaboration among all supply chains, lower the number of resources to deliver required level of customer service, and match supply with demand. Nokia is working toward extending sustainability to its enterprises and ensuring the social, economic and environmental influence of its supply chains to develop fruitful communication with cross-border enterprises, and this has brought great business benefits because good governance and transparency is ensured. Management of business risks, having a clear vision and creating sustainable products are the key issues of Nokia’s SCM approach which help fostering good business communication.
2. Despite many advantages that EDI offers such as reduced costs and lesser workforce requirements and omission of errors in retyping orders and invoices, it has some pitfalls that make e-based systems more efficient. One major drawback of EDI systems is that much cost and time is required in the initial installation and personnel training. Thus, small companies do not afford it. Also, the involvement of numerous trading partners becomes a problem when one large trading partner uses EDI and forces the smaller ones to use the same and accept its standards when they do not want to, otherwise business functions will not be possible. Business processes that function with EDI system must be changed and managed accordingly. All these risks associated with EDI systems make other e-based systems more effective and reliable.