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Question2 READING AT 3M, A LONG ROAD BECAME A SHORTER ROAD One of 3M's many products is a plastic hook. Production occurred at several
Question2 READING AT 3M, A LONG ROAD BECAME A SHORTER ROAD One of 3M's many products is a plastic hook. Production occurred at several widely scattered locations in the Midwest. The process started in a Springfield, Missouri, plant that made adhesives, which were then shipped about 550 miles to a plant in Hartford City. Indiana, where the adhesive was applied to foam. Next, the foam was shipped another 600 miles to a plant near Minneapolis. Minnesota, where the foam was cut into individual pieces and imprinted with the 3M logo. Finally, the foam pieces were shipped to a plant in central Wisconsin, another 200 miles or so, where they were bundled with the hooks and packages for sale. This entire process took over a hundred days and over 1,000 miles to complete. 3M eventually consolidated operations in a single plant in Hutchinson, Minnesota, where a number of other 3M products are made. That eliminated all the travel and reduced the process time by two-thirds. Situations like this can arise when businesses acquire other companies and then elect to maintain their processing operations in their current locations. Questions 1. Businesses sometimes acquire widely dispersed processing facilities through a number of mergers or acquisitions. What trade-offs might they face in considering consolidation? 2. This reading offers one possible reason for the existence of a long supply process. Can you think of some other possible reasons for long supply processes? Based on "3M Begins Untangling Their Hairballs The Wall Street Journal May 17, 2012
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