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OUTCOME OF THE CASE.

The case study "3M - Rethinking regionalisation to adapt to supply chain disruptions" by William
McKnight discusses how 3M, a diversified technology company, rethought its regionalization strategy
to adapt to supply chain disruptions.

The outcome of the case study is that 3M successfully implemented a new regionalization strategy
that allowed it to respond more effectively to supply chain disruptions. The company moved from a
centralized global supply chain model to a more decentralized regional model that enabled it to better
understand and respond to local market demands and disruptions.

To achieve this, 3M reconfigured its supply chain by setting up regional hubs that were located closer
to its customers. This allowed 3M to better understand local customer needs and respond more
quickly to changes in demand. 3M also invested in local manufacturing capabilities, which enabled it
to produce products closer to where they were needed, reducing transportation-related emissions
and costs.

The new regionalization strategy helped 3M to achieve several benefits. First, it reduced lead times,
allowing 3M to respond more quickly to customer needs. This also helped 3M to improve customer
service, which led to increased customer satisfaction and loyalty. Second, it mitigated the impact of
supply chain disruptions caused by events such as natural disasters, trade wars, and the COVID-19
pandemic. By having local manufacturing capabilities and supply chain networks, 3M was able to
maintain continuity of supply even when disruptions occurred.

Finally, the new regionalization strategy helped 3M to achieve cost savings and improve its
environmental sustainability by reducing transportation-related emissions. By producing products
closer to where they were needed, 3M was able to reduce transportation-related costs and emissions.
This also helped 3M to achieve its sustainability goals, which included reducing greenhouse gas
emissions and improving energy efficiency.

Overall, the case study highlights the importance of agility and flexibility in supply chain management.
By rethinking its regionalization strategy, 3M was able to better respond to unexpected disruptions
and achieve a range of benefits, including improved customer service, increased resilience, and
reduced costs and emissions.

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