Now, let's discuss some of the risks associated with this transition and how they can be managed.

1. Firstly, there may be resistance from Value-Added Resellers (VARs) who have played a crucial role
in 3M Canada's current distribution model. To address their concerns, 3M Canada can emphasize
open communication, provide support, and offer incentives to facilitate a smoother transition
process.
2. Secondly, there might be integration challenges as 3M Canada works towards integrating
customer data and systems. To overcome these challenges, close collaboration with customers
and IT teams can help ensure a seamless integration process.
3. Thirdly, it is important to minimize operational disruptions during the transition. Careful
planning, phased implementation, and backup plans can help reduce the risks of operational
disruptions.

Moving on, let's discuss the key metrics that can be monitored for the success of this transition:

1. Logistics cost savings: 3M Canada can measure the reduction in logistics costs compared to the
previous model with VARs. This will help assess the financial benefits of the direct distribution
approach.

2. Order fulfillment speed: The time taken from order placement to delivery can be tracked to
ensure faster and more efficient order processing, thereby enhancing customer satisfaction.

3. Customer satisfaction: Gathering feedback from customers will be crucial in assessing their
satisfaction levels. This feedback can help make any necessary adjustments to ensure 3M Canada
meets their expectations.

4. Market share in the out-of-hospital market: 3M Canada can closely monitor their growth and
penetration in the out-of-hospital market segment. This will provide insights into their
performance and the effectiveness of their marketing strategies.

5. Revenue growth: Assessing the impact on overall revenue and monitoring revenue growth
specifically from the out-of-hospital market will provide valuable insights into the success of 3M
Canada's new approach.

To conclude, I can say that The company 3M Canada relies on value-added resellers (VARs) for product
distribution. However, the current distribution system incurs high costs and limits control over the supply
chain. To address these issues, 3M Canada is considering a transition to a hybrid approach, combining
direct distribution with VARs, and targeting the growing out-of-hospital market. This strategy aims to
improve customer satisfaction, optimize logistics costs, and increase market reach.

Thank you for your attention. Any questions