{"id":22421,"date":"2017-11-14T17:05:48","date_gmt":"2017-11-14T22:05:48","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/too-much-opportunity-3ms-supply-chain-goes-digital\/"},"modified":"2017-11-14T17:05:48","modified_gmt":"2017-11-14T22:05:48","slug":"too-much-opportunity-3ms-supply-chain-goes-digital","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/too-much-opportunity-3ms-supply-chain-goes-digital\/","title":{"rendered":"Too much opportunity? 3M\u2019s supply chain goes digital"},"content":{"rendered":"

Who is 3M and why does this company care about the digitalization of supply chains?<\/strong><\/p>\n

Formerly known as the Minnesota Mining and Manufacturing Company, 3M is $30 billion multinational conglomerate based in Maplewood, Minnesota. 3M manufactures over 55,000 products across multiple industries and operates in over 65 countries.[1] Their global supply chain, inclusive of 200 manufacturing plants, 100 warehouses, and 25 customer-facing divisions is not only critical but also considered a competitive advantage.[2]<\/p>\n

Yet changes in customer expectations coupled with new technologies mean the supply chain of today does not, and in many ways, cannot, look like the supply chain of tomorrow. Considered version 4.0, 3M\u2019s supply chain must become faster, more precise, flexible, efficient and more accurate to remain competitive.[3]<\/p>\n

\"\"<\/a><\/p>\n

\u201cDigitalization\u201d or the introduction of new operational technologies provide solutions for this supply chain 4.0. For example, 3D printing enables impossible shapes to be made with extraordinary precision; cloud computing presents real time network connectivity and significant cost advantages; machine learning provides predictive agility and proactive risk mitigation; robotics and drones permit speedy and efficient production and delivery.[4] With all of these options, the question then becomes where should 3M start?<\/p>\n

3M goes digital:<\/strong><\/p>\n

3M\u2019s leadership realized the need for supply chain transformation in 2011 as part of an overall business transformation.[5]<\/p>\n

In a recent interview, Paul Keel, Sr. Vice President of Supply Chain Management at 3M noted that while there were many potential areas to optimize 3M\u2019s supply chain, a common theme across of them was: \u201cFriction occurs at the connection points.\u201d[6]<\/p>\n

Consequently, 3M decided to deploy a \u201ccommon systems backbone\u201d that provides end-to-end visibility to simplify and accelerate their decision making by investing in SAP\u2019s Enterprise Resource Planning (ERP) software.[7]<\/p>\n

\"\"<\/a><\/p>\n

This software allows 3M to simplify and integrate their supply chain processes, financial transactions and customer interactions on a unified digital platform.[8] 3M aims to complete the implementation globally by the end of 2020 across their ordering and transactional activities, distribution centers and manufacturing plants.[9]<\/p>\n

The current ERP deployment enables 3M to further its efforts to transform its supply change in the long term. Such efforts include aligning and integrating common front-end interfaces with back-end processes critical to supply chain effectiveness and efficiency across supplier management, capacity planning, and\/or network optimization.[10]<\/p>\n

More connections, more complications?<\/strong><\/p>\n

The size and scope of 3M\u2019s supply chain are as much assets as liabilities. The ever multiplying and evolving number of technologies in which to invest require 3M to focus on what makes its supply chain truly advantageous in the long run.<\/p>\n

For example, 3M is using their ERP technology to digitally connect the physical supply chains between their suppliers and their factories. Mr. Keel explained, \u201cTheir systems talk directly to our systems. Our planning system speaks directly to theirs. They see our consumption, and we can look upstream at their capacity.\u201d That said, often suppliers use different ERP systems requiring cloud middleware to operate as a translation layer.[11]<\/p>\n

While optimizing their supply chain connectivity, these system integrations require large bets in spaces that have seen rapid proliferation.[12]\/[13] 3M would be well served by utilizing their culture of innovation to continue to explore and evaluate the optimal digital solutions needed to keep their supply chain competitively advantageous. Consequently, one must ask:<\/p>\n

Given the speed at which digital supply chain technology is advancing, can a company with such a wide product portfolio, and subsequently such an immense supply chain, keep apace?<\/p>\n

How can a multinational conglomerate evaluate whether or not it has truly optimized across all connection points given the ever-expanding array of technological options?<\/p>\n

(788 words excluding figures, headers and references)<\/p>\n

[1] 3M, \u201cAbout 3M,\u201d http:\/\/www.3m.com\/<\/a>, accessed November 2017<\/p>\n

[2] Ibid<\/p>\n

[3] Alicke, K., D Rexhausen, and A. Seyfert, \u201cSupply Chain 4.0 in consumer goods,\u201d McKinsey & Company<\/em>, April 2017, https:\/\/www.mckinsey.com\/industries\/consumer-packaged-goods\/our-insights\/supply-chain-4-0-in-consumer-goods<\/a>, accessed November 2017<\/p>\n

[4] Ibid<\/p>\n

[5] 3M, \u201c3M continues to transform our company,\u201d https:\/\/www.3m.com\/3M\/en_US\/company-us\/enterprise-resource-planning<\/a>, accessed November 2017<\/p>\n

[6] Steve Banker, \u201cDigitization and the 3M supply chain,\u201d Forbes<\/em>, May 3, 2017, https:\/\/www.forbes.com\/sites\/stevebanker\/2017\/05\/03\/digitization-and-the-3m-supply-chain\/#37fd7f5541c1<\/a> accessed November, 2017<\/p>\n

[7]\u201cOne on One: Paul Keel, senior vice president of supply chain, 3M,\u201d Supply Chain Navigator: An Avnet Publication<\/em>, January 2017, http:\/\/scnavigator.avnet.com\/article\/january-2017\/paul-keel-senior-vice-president-of-supply-chain-3m\/<\/a>, accessed November 2017.<\/p>\n

[8]3M, \u201c3M continues to transform our company,\u201d https:\/\/www.3m.com\/3M\/en_US\/company-us\/enterprise-resource-planning<\/a>, accessed November 2017<\/p>\n

[9]Julie Bushman, \u201cBusiness Transformation: 2017 Outlook meeting,\u201d PowerPoint presentation, December 13, 2016, 3M, Maplewood, MN, https:\/\/s2.q4cdn.com\/974527301\/files\/doc_presentations\/2016\/Outlook\/3M-2017-Outlook-Meeting_Bushman_Business_Transformation.pdf<\/a>, accessed November 2017<\/p>\n

[10] \u201cOne on One: Paul Keel, senior vice president of supply chain, 3M,\u201d Supply Chain Navigator: An Avnet Publication<\/em>, January 2017, http:\/\/scnavigator.avnet.com\/article\/january-2017\/paul-keel-senior-vice-president-of-supply-chain-3m\/<\/a>, accessed November 2017<\/p>\n

[11] Ibid<\/p>\n

[12]\u00a0Just one year after 3M invested in SAP\u2019s ERP software, the ERP market grew 3.8% from $24.4B in 2012 to $25.4B in 2013.\u00a0Louis Columbus, \u201cGartners ERP market share update shows the future of cloud ERP is now,\u201d Forbes<\/em>, May 12, 2014, https:\/\/www.forbes.com\/sites\/louiscolumbus\/2014\/05\/12\/gartners-erp-market-share-update-shows-the-future-of-cloud-erp-is-now\/#3ecb43091fae<\/a>, accessed November 2017<\/p>\n

[13] It is now estimated to grow from $18.52B in 2016 to $29.84B by 2021, at an estimated CAGR of 10%.\u00a0\u201cCloud Enterprise Resource Planning,\u201d Market Watch<\/em>, December 12, 2016, https:\/\/www.marketwatch.com\/story\/cloud-enterprise-resource-planning-erp-market-growing-at-a-cagr-of-10-during-2016-to-2021-2016-12-12-42033054<\/a>, accessed November 2017<\/p>\n

Featured image is from:\u00a0http:\/\/sugikingdom.com\/list-youtube-sub-networks\/<\/p>\n","protected":false},"excerpt":{"rendered":"

What happens when digital technologies are introduced to a massive global supply chain? 3M provides one perspective.<\/p>\n","protected":false},"author":10311,"featured_media":22541,"comment_status":"open","ping_status":"closed","template":"","categories":[63,788,3235,3504,3222,194],"class_list":["post-22421","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-consumer-goods","category-digital","category-digital-supply-chain","category-erp","category-global-supply-chain","category-operational-innovation","hck-taxonomy-industry-consumer-products","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"\nToo much opportunity? 3M\u2019s supply chain goes digital - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/too-much-opportunity-3ms-supply-chain-goes-digital\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Too much opportunity? 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