Nokia 2008 Annual Report Download - page 48

Marketing
Nokia Siemens Networks introduced its own brand in 2007, and by leveraging the strong presence of
its parent companies, has positioned its global strengths in business and connectivity solutions with
customers, media, governments and analysts through opening events, brand engagement activities
and customerfocused initiatives throughout 2008.
Marketing has a broad remit to support Nokia Siemens Networks’ wide portfolio of products, software
and solutions across all regions and customer business teams with a wide range of activities
including marketing communications, branding, advertising, media campaigns, exhibitions and
events, customer marketing activities, testimonials, industry seminar, forums and thought leadership
programs, many of which are executed in close collaboration with the company’s sales force, solution
sales managers, business units as well as strategy, human resources and corporate communication
teams.
Nokia Siemens Networks has also strengthened its solutionsdriven approach that seeks a deeper
partnership with its customers by focusing on the specific business needs of an operator and the day
today running of its networks, rather than on solely providing network equipment to meet
technologyspecific needs.
Production
Operations is responsible for the supply chain management of all Nokia Siemens Networks’ hardware,
software and original equipment manufacturer, or OEM, products. This includes supply planning,
manufacturing, distribution, procurement, logistics, demand/supply network design and delivery
capability creation in product programs.
At December 31, 2008, Nokia Siemens Networks had production facilities in nine major plants
globally: three in China (Beijing, Shanghai and Suzhou), two in Finland (Espoo and Oulu), two in
Germany (Berlin and Bruchsal), and two in India (Calcutta and Chennai). The facility in Chennai, where
mobile communications infrastructure is manufactured and distributed, was opened in November
2008 to support India’s rapid growth in mobile subscribers.
In December 2008, as part of its mergerrelated cost synergy process, Nokia Siemens Networks
completed the sale of its manufacturing site in Durach, Germany in a management buyout, led by the
existing leadership of the facility. The deal included a multiyear agreement for the site to continue
production for Nokia Siemens Networks. In November 2008, Nokia Siemens Networks announced that
it planned to close its Espoo production facility, and began negotiations with employee
representatives to that end.
Nokia Siemens Networks works with bestinclass manufacturing service suppliers to increase its
flexibility and optimize costs. Approximately 20% of Nokia Siemens Networks production is
outsourced.
Certain components and subassemblies for Nokia Siemens Networks products, including company
specific integrated circuits and radio frequency components, servers, subassemblies such as printed
wireboard assemblies, filters, combiners and power units, and cabinets, are sourced and
manufactured by thirdparty suppliers. Nokia Siemens Networks then assembles components and sub
assemblies into final products and solutions. For selected products and solutions, thirdparty suppliers
deliver final goods directly to our customers. Consistent with industry practice, Nokia Siemens
Networks manufactures telecommunications systems on a contractbycontract basis.
Nokia Siemens Networks generally prefers to have multiple sources for its components, but it sources
some components from a single or a small number of selected suppliers. As is the case with suppliers
to Nokia Devices & Services, management believes that these business relationships are stable and
typically involve a high degree of cooperation in research and development, product design and
manufacturing. This is necessary in order to ensure optimal product interoperability.
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