EMEA Supply Chain Center of Expertise...The “control tower” for EMEA supply chain Supply Chain...
Transcript of EMEA Supply Chain Center of Expertise...The “control tower” for EMEA supply chain Supply Chain...
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EMEASupply Chain Center of Expertise
Malek ZanzouriVice President
Investor DayJune 2017
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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
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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
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The “control tower” for EMEA supply chain
Supply Chain Center of Expertise
• 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
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Business Transformation and the EMEA COE
Supply Chain Center of Expertise
• Simplifying supply chain
• Delivering manufacturing excellence
• Transforming sourcing operations
• Leveraging Lean Six Sigma
Creating substantial value for customers
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Simplifying supply chain
Supply Chain Center of Expertise
• 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
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Driving manufacturing excellence
Supply Chain Center of Expertise
• 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
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Driving manufacturing excellence in Kamen
Supply Chain Center of Expertise
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
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Transforming sourcing operations
Supply Chain Center of Expertise
• Supplier portfolio rationalization
• Standard processes and systems
• Greater savings in negotiations
• Automated orders and eCatalogs
Enabling business success
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Leveraging Lean Six Sigma in the EMEA COE
Supply Chain Center of Expertise
• 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
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Our EMEA COE is delivering value
Supply Chain Center of Expertise
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