3M Manufacturing and Supply Chain Services. Moving Closer. Customers. To Our

3M Manufacturing and Supply Chain Services Moving Closer To Our Customers

the Serving global marketplace better The world is fast becoming a true global marketplace one that demands regional solutions and world-class, responsive service. To meet the changing needs of customers everywhere, 3M is implementing a strong, strategic vision for international growth. We are reinvigorating and localizing our research and development efforts, shortening our supply chains and broadening our portfolios with acquisitions. At the heart of this vision is a need to build manufacturing and supply chain operations close to our customers. This will help us grow while delivering quality products and service to all customers cost effectively. We re moving closer to our customers so we can serve you better. Creating faster, more responsive supply chains Which supply chains deliver true service excellence? Usually, the short and simple ones. That is why our goal is to reduce our supply chains to their shortest, simplest forms; minimize waste within the entire value stream; and increase their capacity to accommodate future growth. As 3M streamlines our global supply chains by moving them closer to you, we also are making them faster, more efficient and more responsive to your needs. Manufacturing Location Customer Moving from Single Sources to Regional Sources.

1. Shorter lead times When we are closer to you, we can predict and anticipate your needs better. That means less need to keep large inventories on hand, and more ability to produce and deliver what you need, when you need it. That is a more responsive supply chain. 2. Higher service levels Because our supply chains will have more speed and flexibility when we re operating and sourcing raw materials nearby, we expect faster fill rates and overall service excellence. 3. Products that meet your local needs We know you better when we live and work in your neighborhood. That s why, in some areas, along with manufacturing capabilities, we re also bringing 3M innovation, research and development to local communities. This helps us understand your regional customs and requirements, then design products you will love to use. 4. Enriched global communities 3M is proud to offer people in our global markets the opportunity to be part of an innovative and well-respected global company. At the same time, we welcome the rich and diverse perspectives of our global employees. The commerce 3M brings to local areas often is a boost to the entire community. 5. Improved costs By reducing our cycle times, using Lean manufacturing concepts, reducing transportation costs and eliminating waste, we will continue to offer competitive pricing and superior overall value. Closer manufacturing and supply operations in benefit you five big ways

Providing capacity in North American plants to accommodate growth North American markets continue to deliver strong growth, so we re applying Lean Six Sigma tools and methodologies to expand and improve our domestic research, development and manufacturing facilities. By expanding our international manufacturing capacity, we are freeing up capacity to accommodate growth in North America, Canada and Mexico. Building regional Super Hubs Super Hubs are large production facilities that manufacture products for multiple 3M businesses and are aligned to regional growth needs. They help us share resources efficiently, interact closer to our customers and improve our total delivered cost to you. Our vision is to build Super Hubs in strategic locations worldwide to accommodate growth, encourage local innovation, and deliver superior quality and service excellence. Expanding and building to strengthen worldwide Our plant in Hutchinson, Minnesota, is an example of the Super Hub concept. It serves multiple 3M businesses and divisions, and supplies a large regional area.

Taking the long view Our vision to improve the utilization of U.S. manufacturing operations while building new facilities in strategic international markets is challenging, aggressive and necessary. It will fuel our ability to grow rapidly worldwide while delivering quality products and service to all customers cost effectively. By 2012, our goal is to reach an 80 percent regional self-supply level. That means 3M will be purchasing raw materials and manufacturing products using mostly regional vendors, facilities, employees, distributors and transportation outlets. Delivering service excellence will always be central to our vision We know the future will bring more opening of global markets, more international capital flow and increased international cooperation. Business models will continue to change as customer demands evolve, markets mature and competition increases. 3M will be ready. And delivering service excellence always will be central to our vision. We re not standing still. As new worldviews evolve, we will advance our organizational design in order to stay close to our customers so we can serve you better.