Supply Chain World - Fall 2017 - 63

3m canada co. manufacturing & energy

	 3M's	previous	legacy	data	system	had	been	in	place	for	
more	than	29	years	and	didn't	provide	the	same	level	of	data	
completeness	that	the	SAP	platform	features.	As	a	result,	
division	leaders	often	found	that	data	was	incomplete	or	incompatible	across	different	divisions.	"SAP	gives	us	better	
visibility	into	our	inventory	and	supply	purchase	history,"	
van	Geel	says.
	 In	addition	to	keeping	its	divisions	on	the	same	page,	SAP	
has	played	a	role	in	helping	3M	manage	its	contracts	with	
its	hundreds	of	vendors.	The	company	recently	began	using	
the	platform's	Contract	Lifecycle	Management	module	to	
schedule	and	renew	its	contracts.	

Improving Relationships
Over	the	past	few	years,	3M	has	taken	several	steps	to	improve	the	way	it	works	with	vendors.	This	includes	establishing	its	Service	Quality	Supplier	Awards	program	in	2015	
to	recognize	suppliers	for	their	service.	All	departments	
throughout	3M	Canada	nominate	suppliers	for	each	award,	
which	are	given	based	on	what	3M	terms	the	TQRDCS	
methodology.	The	methodology	adds	an	"S"	-	for	sustainability	-	to	the	established	manufacturing	industry	key	performance	indicators	of	technology,	quality,	responsiveness,	
delivery	and	cost.	
	 The	company	last	year	introduced	a	scorecard	grading	
the	performance	of	its	suppliers	on	each	category	within	
the	TQRDCS	methodology.	
	 Supplier	relationships	were	also	at	the	heart	of	the	
company's	first	supplier	summit	event	in	May.	Van	Geel	and	
his	team	met	with	100	representatives	from	32	suppliers	in	
one-on-one	meetings.	The	summit	led	the	company	to	another	supplier	communication	effort	-	a	supplier	ideation	
portal	3M	suppliers	can	log	into	to	submit	ideas	to	the	company	on	ways	both	companies	can	improve	their	working	
relationship.	Van	Geel's	team	reviews	those	ideas	and	acts	
on	the	most	beneficial	suggestions.	 The	sourcing	team	
continues	to	find	ways	to	improve	3M	Canada's	sourcing	
operations.	The	team	recently	began	updating	metrics	such	
as	cost,	compliance	with	Canadian	laws	and	company	policies,	and	new	product	introductions	on	a	lean	continuous	
improvement	board.	These	metrics	are	discussed	amongst	
the	team	once	a	week,	he	notes.
	 In	addition	to	working	internally	within	the	department,	
van	Geel's	team	has	also	formed	what	it	calls	a	matrix	organization	with	other	3M	departments	such	as	manufacturing	
and	sales.	"I	am	proud	of	the	work	my	teams	do	in	support	
of	3M,"	he	says.	 	
FALL 2017 Supply Chain World

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Table of Contents for the Digital Edition of Supply Chain World - Fall 2017

Contents
Supply Chain World - Fall 2017 - Cover1
Supply Chain World - Fall 2017 - Cover2
Supply Chain World - Fall 2017 - 1
Supply Chain World - Fall 2017 - Contents
Supply Chain World - Fall 2017 - 3
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Supply Chain World - Fall 2017 - Cover3
Supply Chain World - Fall 2017 - Cover4
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