INNOVATION: SUSTAINABLE DEVELOPMENT AND PROGRESS

Josh MaysMichelle Moran

Juliana CamilottiSteven Nguyen

COMPANY• Founded in Minnesota in 1902

as Minnesota Mining Manufacturing Company

• 214 plants in 41 countries– 40 countries with manufacturing

operations– 35 countries with laboratories• Operations in 28 states

in U.S. Inge G. ThulinChairman of the Board,President andChief Executive Officer

COMPANY

• 65,000 different products in 6 different sectors– Health Care– Consumer and Office– Industrial and Transportation– Display and Graphics– Electro and Communications– Safety, Security and

Protection Services

VISION

3M Technology Advancing Every Company3M Products Enhancing Every Home3M Innovation Improving Every Life

SUPPLY CHAIN

Simple Supply Chain1. Acquire Orders

• Print to 3M

2. Procure Raw Materials• Supplier Direct

3. Manufacture Products4. Fill Orders

Pull Supply Chain Model

ORDER PROCESSING

Print to 3M• New solution for

customer service and electronic ordering

• Customers send their POs electronically to 3M

3M Innovation Center of Technical Excellence

PROCUREMENTE-Procurement

• TPN Marketplace – Purchase contracted goods

from a group of online suppliers

• Supplier Direct– References– Documents– Forms– Links– Track Payments

INVENTORY

Manufacturing Hubs • Reduced the need to

keep large inventories

• Health Sector is the only that requires extra inventory

MANUFACTURING

• 214 Manufacturing Companies – 41 Countries

• 10 Super Hubs– 6 in the U.S.– Poland– Singapore– Japan– Germany

Eliminating Supply Chain Hairballs

MANUFACTURING

LOGISTICS & TRANSPORTATIONLogistics• Plants in diverse markets• Manufacturing Hubs• WarehousesTransportation

– Truck– Rail– Water

• Standard Palletization Postponement Partners– DHL– Fiege– Schenker-Joyau– DSV

INFORMATION SYSTEMS

• Before– Fragmented ERP systems

• 2010– Implementation of SAP

Business Suite 7• Leverage global demand

forecasting• Supply chain planning• Management: use SAP’s

Business Intelligence Software – compare performance

UNIQUENESS• Diverse and rapidly changing

company

• Innovation is part of the Corporate Culture

• Synergy in global network

• Tracking and Tracing solutions

• Centralized Transportation Controls

COMPETITION

Diversification• Competition in each of

the market segments– General Electric Co.– Honeywell International

Inc.

New Product Vitality Index

CHALLENGES & RECOMMENDATIONS

Challenges:• Track growing list of

products manufactured– Switching to new Hub

Manufacturing• Strategies for plant

locations– Demand driven

Recommendations:• Continue implementing

Hub-type manufacturing

• Close smaller manufacturing

• Continue improving and implementing a globalized ERP system

CONCLUSION

3M is a great example of a company that has been able to reinvent itself over and over. Even though it was created

for mining, which it soon failed at, it was able to pick itself back up and pioneer into new industries. This spirit

is still what drives 3M today. Now, however, it is not products or fields that 3M is having to be innovative in, it

is its supply chain. Internally, their supply chain was known to have “hairballs”,

but for the past few years the company has been working on ways to fix them, starting with what they call super-

hubs.

QUESTIONS?