3m Corporation Essay

Decent Essays
CASE #4: 3M Canada: Industrial Business Division


* The target is to increase growth rate from 3-5% to 12-15% in 18 months * OEM market is mature with limited prospects of expansion * Ultimately shifting overall focus from OEM market to MRO market * High unfamiliarity and low exposure to the MRO market * IBD’s share of distributor sales was 2% of distributors’ revenue * Transitioning focus from Special and Niche accounts to Large National accounts * OEM is a volatile customer group influenced by the economy and inflation


Strengths: * Highly diverse product line and product development serving the industrial markets (seven divisions) * Continuous net
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* Manage replenishment process by putting in place an effective supply chain process * Must implement a good logistics program within the company to put in place just-in-time therefore leading to a decrease in the cost since price of goods constituted only 39% of the total cost * Cutting the amount of money used on logistics would mean that there will be more money to use elsewhere * Enhance values as seen by customers through post-purchase service/technical support * Allows for customers to see that there is more value in purchasing with 3M * Creates a bond with the customers to ensure that they will be provided with premium service * Offer total solutions to customers by breaking up product discipline that current stand within the company * Not focusing on “what to sell” but changing a focus to “how to sell” * Create a well-rounded sales team that could sell to National accounts as a whole creating a total solution, one stop shopping for
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