SHRI MATA VAISHNO DEVI

UNIVERSITY
KAKRYAL , KATRA

Supply Chain Management Study of " 3M India Ltd."

Submitted by :
Submitted to :
Abhishek Chopra
Dr. Sanjay K. Mishra
15MMB03
Professor

Associate

MBA
SOB, FOM
2015-17
SMVDU,Katra.
A Brief Introduction
Supply chain management (SCM) is the management of the
flow of goods and services. It includes the movement and
storage of raw materials, work-in-process inventory, and
finished goods from point of origin to point of consumption.
Interconnected or interlinked networks, channels and node
businesses are involved in the provision of products and
services required by end customers in a supply chain. Supply
chain management has been defined as the "design, planning,
execution, control, and monitoring of supply chain activities
with the objective of creating net value, building a competitive
infrastructure, leveraging worldwide logistics, synchronizing
supply with demand and measuring performance globally.
Supply chain management is a cross-functional approach that
includes managing the movement of raw materials into an
organization, certain aspects of the internal processing of
materials into finished goods, and the movement of finished
goods out of the organization and toward the end consumer. As
organizations strive to focus on core competencies and become
more flexible, they reduce their ownership of raw materials
sources and distribution channels. These functions are
increasingly being outsourced to other firms that can perform
the activities better or more cost effectively. The effect is to

increase the number of organizations involved in satisfying

customer demand, while reducing managerial control of daily
logistics operations. Less control and more supply chain
partners lead to the creation of the concept of supply chain
management. The purpose of supply chain management is to
improve trust and collaboration among supply chain partners,
thus improving inventory visibility and the velocity of inventory
movement.

About the Company

3M India Ltd ( 3M India) (formerly known as 3M Ltd) was

incorporated in 1987 as an equal joint venture between USA
based Minnesota, Mining and Manufacturing Company now 3M
Co. and Mr. ashok Birla promoted Scinitar Investment and
Trading Co. Pvt. Ltd. Overtime, 3M Co. increased its stake in
Birla to 76% by purchasing stake from the Birla Group. The
name of the company was changed to 3M India in december
2002. In 2007 , the Birla Group exited from 3M India by selling
its stake to foreign institutional investors and others. 3M Co.
holds 76% stake in 3M India.
3M India has a diverse and expanding range of products
catering to a wide variety of customers which ensures its
revenues are less impacted by the economic trends. The
Company portfolio comprises of over 6000 products catering to
various customer segments and the portfolio has been

expanding over time. 3M India develop products in India as well

as introduces products from the 3M Group across the world
with/without modification for the domestic market. 3M Co. its
parent has a portfolio of over 60000 products developed over
several decades for the industrial markets and sciences
markets and is renowned for developing new products and
leveraging on core technologies for products such as adhesives,
films, abrasives , and the most famous RFID tags and Auto ID's.

The Supply Chain Decisions by 3M

Almost everyone knows 3M or its products. The 105-year-old company
is a $21-billion technology giant with major brands like Scotch Brite
and Auto Id's on its roster as well as innovative products like multi-layer
optical films that go into LCDs. There are six major business units with
40 independent divisions in the company, operating with hundreds
of offices, plants and suppliers around the world. 3M also has a number
of core technologies feeding into its different markets and crossing over
business lines. Needless to say, its supply chain was a robust and
complicated network.
Critical supply chain decisions like where to locate a plant or whether
3M should make or buy a product were taking too much time. The
Corporate office interacts with all the business units and sought a better
way to make sense of how the technologies and business were
interrelated.

It was clear that 3M needed to disentangle the puzzle first. At the same
time, there was a critical need to streamline the process and create
efficiencies. As one would expect, there were always competing
demands and factors that came into the decision process, including a
complicated array of technologies and markets. The ultimate challenge
became getting people to agree on what was important and moving
forward with a specific plan.
After benchmarking decision processes internally, 3M realized that
although they had successes in different pockets, there was no one
complete process in place nor was there consistency built into the
business. That is when Corporate brought in some supply chain
management experts.
3M started with a few decisions. Within one month, they decided Expert
Choice was the right choice for 3M. From there, they deployed Experts
Green Belt Training Program which was the catalyst for widespread use.
Training provided a quantum leap in understanding what was possible
and how to apply learning in real business situations.
Right from the start, the SCM experts helped 3M package their
procedures and gain significant efficiencies in terms of moving through
the overall decision. The ability to combine quantitative and qualitative
data and then represent the results graphically has helped in packaging
decisions for final approval. Additionally, its invaluable to run through
numerous what-if scenarios with skeptics. This tool created both a final
consensus as well as the ability to defend a decision. Today, 90% of
3Ms decisions involve the model for selecting a supply source.
For 3M, once these efficiencies were developed, speed became a key
element. The team began to standardize the analysis process, and
develop a common language for decision-making. As Corporate trained

more and more people on Experts, the company was able to spend less
time overall in the decision-making cycle, as well as much less time in
endless debates.

Secure Solutions For Life: Medical Device Supply Chain

3M has expanded its pharmaceutical collaboration for 3Ms

advanced track and trace system that uses Automatic
Identification (Auto ID) technology known as Radio Frequency
Identification (RFID) to track medical device products as they
travel from manufacturer to clinics and hospitals.

Carrying critical medical device inventory. Tracking and

forecasting the purchases of high-value assets. Dealing with
unforeseen
logistical costs. For medical technology companies, operational
challenges are a reality of doing business. Salespeople arent
simply the main point of contact between a hospital and a
medical device manufacturer. A sales representative also acts
as

distributor, inventory forecaster, shipper and logistics manager.

Keeping products visible is another challenge, and knowledge
of where this high-value asset is at any given point adds to the
demand. And then theres the time-consuming challenge of
keeping inventory records accurate. Many times, up to the
point of implantation, manufacturers of pacemakers,
defibrillators, stents and cardiac surgical devices can only
speculate where their products will end up. Plus, overstock
returns, quality-control recalls, forecasting patient needs and
preparing for disasters all cause logistical and operational
challenges for medical device manufacturers.
Theres no doubt these companies need a comprehensive, allencompassing solution for the supply chain one that speaks
both to a myriad of operational requirements, as well as patient
safety.

Real-Time Visibility
The 3M Secure Supply Chain System for pharmaceuticals
provides tools enabling real-time visibility to inventory positions
across the supply chain, including at the point of dispense in a
clinic or hospital.
Encrypted Data
Employing RFID tags with encrypted digital signatures,
combined with a unique identifier at the manufacturing site,
establishes product authenticityand that combination is
decrypted and read at the dispensing site to help validate
authenticity of each injection or dose.
Value-Added Service

RFID enables a clinics staff to maximize time with patients,

providing tools to better track, locate and bill for product
inventory thus reducing or eliminating manual tracking
processes. And pharmaceutical manufacturers benefit by
enhancing their overall customer experience.
Inspires Confidence
The platform delivers a straightforward technology solution that
insures confidence in the integrity of drugs being dispensed
while delivering business
value to manufacturers and their customers, without requiring
a significant infrastructure investment.
Built from the Ground Up
Renowned for product innovation, the 3M Secure Supply Chain
System for pharmaceutical authentication is a comprehensive
solution that
includes 3M software, hardware, data housing, Business Process
Optimization and systems integration services.