3M Finished Goods Planning

Stocking locations in hubs and warehouses across Europe
Planning done centrally
Stock targets for each location based on volume and order patterns
- Local warehouse stock set by market demand, lead time to ship from hub & batch size to ship
- Hub stocks set by call off demand pattern, lead time & batch size to make in the factory
- Supplier stocks set against factory demand and lead time to resupply

Stock held in 5 EDCs, 20 warehouses and inbound to the 3M factory
30% reduction in on-hand inbound inventory
60% reduction in FG inventory across all sites
Service performance > than 97% target
Elimination of process gaps in factory between Lean / Pull methods and planning approach
Improved productivity and better communication & relationships across supply chain

“Working with O8 has put us back in control of the supply chain.”

3M Supply Chain Manager, OH & ES, Europe