Tag Archives: Norrman Andreas

Ericsson versus Nokia – the now classic case of supply chain disruption

When faced with a supply chain disruption, proactive and reactive supply chain risk management can in fact make or break a company’s existence. One of the most famous (or rather infamous) cases is the fire at the Philips microchip plant in Albuquerque, New Mexico, in 2000, which simultaneously affected both Nokia and Ericsson. However,  both companies took a very different approach toward the incident, and in hindsight, clearly displayed how to and how not to handle supply chain disruptions.

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Categorization of Supply Chain Risk

In chapter 2 in Supply Chain Risk by Claire Brindley, there is a framework for assessing and positioning supply chain risk issues, written by Andreas Norrman and Robert Lindroth, called Categorization of Supply Chain Risk and Risk Management. What I like about the framework is that it works along three dimensions, each highlighting different areas of research issues or managerial actions: 1) the Supply Chain itself, 2) Risk Management processes and 3) Types of Risk. The framework clearly shows how the dimensions are intertwined and related such that no issue can be distinctively separated from the other.

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