Value Chain Analysis of 3M

3M is a healthcare, consumer goods, and workers safety products manufacturing American multinational conglomerate. Charles Simmons, Herman W Cable, John Dwan, William A McGonagle, Henry S Bryan, and J Danley Budd founded the conglomerate in 1902. Today, we’ll discuss the value chain analysis of 3M supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Partners of 3M

• SAP
• MongoDB
• Microsoft
• Google
• Gitlab
• Dropbox
• Crossbeam
• Celigo

The Value chain analysis of 3M supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s the supply chain analysis of the 3M value chain analysis company example as follows;

Value Chain Analysis of 3M

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of 3M supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of 3M

The primary activities are directly involved in the production of products and goods and adding value to the healthcare and consumer goods company. Some of the five main primary activities in the value chain analysis of 3M supply chain analysis are as follows;

Inbound Logistics of 3M

I-Suppliers Network

3M has established a very large network of suppliers and vendors in various countries across the world. The large and worldwide network of suppliers and vendors would help the conglomerate to ensure the smooth availability of supplies and materials without any disruption and delays. The brand closely collaborates with various suppliers to ensure diversity, community building, risk analysis, and protecting the health and safety of workers.

II-Responsible Sourcing

3M is highly careful and cautious about the community, natural resources, and the environment. The responsible sourcing program of the brand comprises of following elements;

• Unsafe labor practices
• Protecting the rights of Indigenous people
• Limited loss of natural habitats
• No Deforestation
• No child labor
• Small-scale cobalt mining

III-Selection of Suppliers

3M has set strict protocols for the selection of suppliers, vendors, and partners. The conglomerate analyzes the following factors and indicators while choosing them;

• Value and financial strength
• Total cost
• Accurate delivery on time
• Responsiveness
• Innovative products and service improvement
• Quality of products and supplies
• Technical capabilities

Outbound Logistics of 3M

3M collaborates and partners up with various transportation and 3rd party logistics service providers for the transportation and distribution of products and goods. The role of outbound logistics partners is to move products and goods from the suppliers to the manufacturing factories, warehouses, and distribution centers, and then to the retail chain stores.

Some of the main distributors of 3M are as follows;

• Powell Electronics
• Newark InOne
• NEP Electronics
• Mouser Electronics
• Heilind Electronics
• Digi Key Corporation
• Avnet Electronics
• Arrow Electronics

Operations of 3M

I-Production and Manufacturing Factories

3M has approximately 125 production and manufacturing factories in over 37 countries across the globe. Out of which, 80 manufacturing factories are in 29 states of the US. They receive supplies, materials, and parts from authorized and verified suppliers and vendors; and perform various unique operations by employing various advanced tools and equipment to develop the products.

II-Distribution Centers

3M has a network of approximately 100 logistics and distribution centers. They receive finished goods from the company’s production and manufacturing factories, temporarily store the products at the right temperature, package and label them, and then move them to the retail chain stores and the end consumers.

Marketing & Sales of 3M

3M runs various types of marketing and advertisement campaigns for the promotion of its products, services, and brand. The consumer goods and healthcare brand employs various media channels to approach various segments of the customer’s market and increase its sales and network.

Services of 3M

3M offers a wide range of products and services. The additional service portfolio helps the company to improve the customer satisfaction level and connect with them. However, some of the main services of the firm are as follows;

• Solution and services
• Speech and ambient recognition
• Medical coding
• Outsourcing services
• Imaging
• Patient classification strategy

Supporting Activities of 3M

Supporting activities are indirectly involved in the production of products and goods and adding value to consumer goods, healthcare, and worker safety companies. Some of the main supporting activities in the value chain analysis of 3M supply chain analysis are as follows;

The infrastructure of 3M

3M has established a very large infrastructure of production and manufacturing factories, suppliers and distributor networks, research facilities, warehouses, and distribution centers. The large and worldwide network of suppliers would help the company to smoothly perform its various production operations, and timely deliver the finished goods to the end consumers.

HRM of 3M

3M has employed approximately over 85000 employees to manage its global operations. The human resource management department of the healthcare and consumer goods brand plays a key role in recruiting a large database of employees, conducting training programs for suppliers and employees, contracts with suppliers and partners, and offering equal employment opportunities to all regardless of any differences.

Technological Development of 3M

3M invests a significant amount of capital resources in research and technological development. The R&D facilities of the brand play a key role in developing innovative medical devices and equipment, unique products and improving the existing ones, and achieving efficiency with AI and ML. However, it allows the company to gain a competitive edge and maintain its position in the market.

Procurement of 3M

3M is highly careful and cautious about ethical sourcing and procurement of raw materials, supplies, and components from various suppliers and vendors. The company has set up a strict code of conduct for suppliers to ensure their compliance with human rights standards and industry regulations.

Conclusion: 3M Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis

After an in-depth study of the value chain analysis of 3M; we have realized that 3M is the world’s leading consumer goods and healthcare brand. If you are learning about the 3M value chain analysis example company; then you should keep in mind the above-mentioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.