3M Business Transformation 3M Advanced Shipping Notifications · The purpose of the Center of Expertise is to bring together top management expertise and to deploy innovative new

3M Business Transformation

3M Advanced Shipping Notifications Supplier Awareness Pack

© 3M 2013. All Rights Reserved. 3M Confidential


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Introduction

A brand new Supply Chain Center of Expertise (CoE) has been formed

A letter (next slide) has been posted to you to advise of these changes

SAP software systems and processes will be deployed

We are now contacting you to request implementation of a new mandatory SAP process

for 3M and our suppliers called Advanced Shipping Notification (ASN)



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Supplier Letter


Dear Supplier,

3M has formed a brand new Supply Chain Center of Expertise (COE) that will begin initial

operations in April 2013 in Burgdorf, Switzerland with full operations scheduled in Q1 2014.

This strategic business decision centralizes direction and management for all aspects of 3M’s

supply chain for Europe, Middle East, and African regions (EMEA). This new Center impacts

how we will work with our suppliers.

The purpose of the Center of Expertise is to bring together top management expertise and to

deploy innovative new business processes. This centralization will allow us to be more

flexible in meeting changing demands and will enable us to better serve our customers.

The new Center of Expertise is a separate Swiss legal entity named 3M EMEA GmbH, and

acts as the supply chain center for our operations in EMEA. Some sourcing and procurement

responsibilities will be split between a country and the new Center. In light of these changes,

3M will be providing you with more details in the upcoming weeks.

This new Center is an exciting opportunity for 3M to deploy innovative and competitive

business strategies. Systems and processes enabled with SAP software will be standardized

and streamlined.

We do value our 3M suppliers and will need our suppliers to change with us so we markedly

improve service for our customers.

Thank you for your attention. You will hear more from us soon.

Best Regards,

Holger Wiegand

3M EMEA Supply Chain Center of Expertise


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© 3M 2011. All Rights Reserved.

Advanced Shipping Notification



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Why Advanced Shipping Notification?

With 3M’s new SAP software, ASN information is critical to:

Update 3M manufacturing planning systems ensuring goods and services will be

available to meet customer demand

Enhance 3M warehouses’ ability to manage the receiving of our supplier deliveries

Identify Quantity mismatches between the Purchase Order and the Delivery prior to

receipt of the goods at 3M, thereby minimizing invoice matching errors and delays

to supplier payments

Report input material usage for Subcontracted materials

Provide customs and duty clearing information for International shipments



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How to Submit an ASN to 3M Suppliers will be required to submit the following ASN details for deliveries against a 3M EMEA

GmbH Purchase Order for delivery into a 3M Distribution Centre or 3M Customer:

For Purchased Finished Goods or Sub-Contracting Services

The expected shipment date or date when the goods will be made available for 3M carriers to pick up

Shipment quantity

Type, number, weight and dimensions of the packages (box, pallet etc)

Invoice number

Verify the Incoterms

Note – an ASN will not be required if you are shipping semi-finished goods to a 3M manufacturing

location against a 3M Country specific Purchase Order (e.g. 3M UK, Germany, France etc)

It is critical the ASN information is submitted to 3M when the above details are known

Suppliers will be trained on how to submit their ASN information by using the 3M ‘Ship It

Smarter’ Web Portal – this will provide PO line information against which to confirm the above

details to minimize the amount of manual data entry required

ASN is a standard SAP process, and you may already be submitting ASNs to other customers

who are using SAP

3M greatly appreciates supplier support to implement the ASN process which we believe will

benefit both parties © 3M 2013. All Rights Reserved. 3M Confidential


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3M EMEA Transportation Strategy

and the

Ship It Smarter Web Portal



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Background to the Ship It Smarter Web Portal


There is a need to optimise the 3M supply chain to reduce costs, improve the

speed to market and to be more sustainable

To drive these improvements, 3M is implementing an EMEA Transportation

Strategy, which includes the integration of 3rd party supply chains

This means that 3M preferred carriers will collect goods from our suppliers, and

we are working to roll this out during 2013 and 2014. Supplier Incoterms will

therefore change to FCA Named Place

3M has invested in a new Transportation Management System called Ship It

Smarter (SIS)

The SIS web portal will now be made available for all suppliers, in order to

submit their ASN information to 3M


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SIS - ASN Only or Full Integration?

At this stage, the majority of suppliers will only be asked to use SIS to submit their ASN

information to 3M

Supplier training on how to use SIS for ASN will be provided during a 1 hour webinar event,

dates and details will be confirmed to you at a later date

The exact date from which you will need to submit ASNs will depend on the 3M location you

are delivering to, and this will be confirmed during the training

3M will invite and work with suppliers during 2013 and 2014 to implement the fully

integrated 3M Transportation Network (whereby 3M carriers will collect from suppliers)

For suppliers already using Ship It Smarter, we will provide an update shortly on the

changes to the SIS screens being made to accommodate the additional ASN information

fields

Information concerning additional changes related to the implementation of SAP will be

communicated to suppliers in the coming months



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Homepage: http://www.shipitsmarter.com/3M


Purchase Orders: Look up of

Purchase Orders

Settings:

Maintain password

Breaking News:

News flashes from

3M Sourcing &

Transportation

Create & Confirm Departure

of trailer/container

SIS Web Portal


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Supplier Action Required Now Suppliers must identify 2 Users, but not limited to 2, who will be responsible for entering the

ASN information into SIS

Primary user / Back Up user

Typically they will be in Customer Services or Dispatch functions

3M needs this information to create the User Accounts for the SIS web portal

Open the template provided and complete the information for: 1) Company details in the

‘Location_Loadsheet’ 2) User details in the ‘User_Loadsheet’

Return the Template to your 3M Sourcing Contact and 3M will shortly issue the Login and

temporary Password to the Users

Invites will be sent to these Users to attend the Supplier Training Webinar as and when the

dates have been confirmed

In the future, suppliers should communicate User changes to their 3M Sourcing Contact © 3M 2013. All Rights Reserved. 3M Confidential


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Thank You for Your Support and Commitment Questions?


Documents

3M Business Transformation 3M Advanced Shipping Notifications · The purpose of the Center of Expertise is to bring together top management expertise and to deploy innovative new