emea supply chain center of expertise...the “control tower” for emea supply chain supply chain...

1. All Rights Reserved.6 June 2017© 3M

EMEASupply Chain Center of Expertise

Malek ZanzouriVice President

Investor DayJune 2017


Business Services Operations Global Service CentersSupply Chain Centers of Expertise

Delivering premier customer experiences

Enhancing and optimizing customer facing processes

Optimizing global supply chain processes

Delivering manufacturing excellence

Standardizing and centralizing transactional activities

Enhancing service performance through automation

Service modelsAchieving economies of scale in our operations


Supply Chain Center of Expertise

Technology Manufacturing Global Capabilities Brand

Ability to share and combine elements of 3M’s broad technology portfolio to produce unique, differentiated products, translating to premium margins

Utilization of 3M manufacturing footprint and technology, including process trade secrets, leading to higher-performing products and lower unit costs

Subsidiary front- and back-office footprint that allows for the effective development, adaptation and commercialization of products

Brand equity in the 3M brand and in strategic brands that are shared across business groups

Leveraging our fundamental strengthsCreating sustainable value


The “control tower” for EMEA supply chain


• EMEA Center of Expertise (COE) manages all plants in EMEA

• $4.2B sales value of production across EMEA flows through the COE

• Highly capable, diverse, multilingual team spanning 29 nationalities


Business Transformation and the EMEA COE


• Simplifying supply chain

• Delivering manufacturing excellence

• Transforming sourcing operations

• Leveraging Lean Six Sigma

Creating substantial value for customers


Simplifying supply chain


• Optimizing end-to-end value streams to improve service to customers

• Increasing planning efficiencies with data and analytics

• Reducing transportation costs from improved visibility/freight management while enhancing sustainability

Driving value creation


Driving manufacturing excellence


• Deliver high quality, lower cost and innovative products

• ERP real-time information driving plant productivity

• Implementing Lean everywhere to optimize flow in our operations

• Empowered employees with Customer First mind-set

Operating more efficiently and effectively


Driving manufacturing excellence in Kamen


Implementing Lean everywhere

• Agility in product planning

• Kaizen on shop floor

• Optimized sourcing order patterns

• Total average cycle time reduced by 35%

• Order fulfilment improved by 13%

• Inventory of materials reduced by 70%

Improvement in key metrics

Tegaderm™ dressings Lean Value Stream


Transforming sourcing operations


• Supplier portfolio rationalization

• Standard processes and systems

• Greater savings in negotiations

• Automated orders and eCatalogs

Enabling business success


Leveraging Lean Six Sigma in the EMEA COE


• Improving flow and agility in value streams

• Enabling Business Transformation to realize value faster

• 1,000+ active projects in supply chain for EMEA

• Developing leaders to fuel business success


Our EMEA COE is delivering value


Simplifying to improve the customer experience

Progress on Cost of Goods Sold

• 130 bps improvement (2013 - 2016)• Supply chain simplification

Optimizing key processes

• 3M ERP deployments simplified by ECOE • Transforming our sourcing operations

Lean Six Sigma

• Deploying Lean in our supply chain and other high-impact areas

• Developing leaders to fuel business success

emea supply chain center of expertise...the “control tower” for emea supply chain supply chain...

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