Logistics Six Sigma Savings: 3M Brazil

3M will outsource pallet management to CHEP, trasitioning from exchange pallets. Using the Six Sigma DMAIC process, 3M validates significant room for improvement in its pallet operation. It expects to realize benefits with potential cost reductions for transportation and storage. ...

... "To determine whether CHEP services were appropriate for the company's operations, 3M used Six Sigma processes, solicited feedback from wholesale and superstore retail customers and conducted a comprehensive reference call at the Brazilian facilities of a leading global consumer products company. During the review process, managers identified a chance to decrease loss of pallets and reduce the quantity of renewed equipment derived by costumer returns. " ...

Via CHEP: 3M Brazil Sees Cost Savings With CHEP Program

CHEP is the global leader in pallet and container pooling services serving many of the world's largest companies. The company has more than 7,700 employees and operates in 44 countries. Combining superior technology and an asset base of more than 280 million pallets and containers, CHEP offers its customers exceptional value, a platform that enables reduction in customer product damage, and an environmentally sustainable logistical solution. Supply chains served include consumer goods, produce, beverage, and the automotive industry. With global partners that include Procter & Gamble, SYSCO, Kellogg's, Kraft, Nestle, Ford and GM, CHEP is known for Handling the World's Most Important Products. Everyday.

3M Brazil uses a number of management methods in its operations, such as theory of constraints in its supply chain. ...

Via AGI-Goldratt Institute: TOC World 2000 Video Presentations: "3M Brazil successfully applies the Theory of Constraints to their Sales and Operational Plan (SOP) to define their ideal sales mix in terms of addressing the market, the impact on production, and to evaluate the impact on their bottom line. "

In addition to its efficiency focus, 3M Brazil focuses on sustainability in its manufacturing operations. Its skills in pollution prevention are showcased here. ...

3P Examples: "3P team from 3M Brazil's Itapetininga facility replaced the solvent-based paper treatment process the plant used to manufacture packaging, medical and masking tapes with a new, water-based process. As a result of this change, the facility reduced solvent emissions by over 45 tons per year. "