As one of the biggest multi-manufacturers in the world, 3M is expending very quickly in China. How to coordinate every factory and logistics center to achieve an efficient working system has become very important for the giant innovator in the emerging market.

"China, an emerging global market, offers continuous increasing customers to businesses. What clients require is a quick response to their orders and an efficient logistic approach," said Jos Vets, vice president of supply chain operations in 3M China.

Jos Vets, vice president of supply chain operations in 3M China. Provided to China Daily

3M China has become the largest branch for the world leading innovation cooperation. The total investment in China is more than $1 billion. 3M China has 12 subsidiaries, 27 offices, 11 manufacturing bases, one research and development center and four technical centers.

According to the Chinese branch, almost 10 percent of 3M's global business is contributed by Chinese market. Over the next five years, 3M China will become the fastest growing global business in the region.

"The challenge comes with how to allocate our logistic centers and resources to meet the growing demands. 3M supply chain aims to accomplish the balance between customers' needs and plants expansion."

The biggest single investment that 3M has in China was a manufacturing site for photovoltaic solar materials and renewable energy products in September in Hefei, Anhui province, East China.

The new plant, 3M Materials Technologies (Hefei) Co, will produce a variety of products at the new facility, including 3M Scotchshield Film, a solar backside barrier film used in crystalline silicon solar photovoltaic modules. The project is 3M's ninth manufacturing facility in China.

"It's also the first project 3M in China move away from the eastern coastal cities. It's not in west China yet, but we start going inner China already," Vets says, who is responsible for the total supply chain — manufacturing, engineering, sourcing and logistic supply chain.

"As a material supplier in China, we need to get close to our customer. When our customers move towards west, 3M China will set more facilities in the west. That's our strategic plan," he added.

Moving toward inner China is the strategies for many foreign companies in China now. Provinces in inner China such as Anhui, Shanxi, Henan, Hubei, Hunan and Jiangxi have already become a new attractive spot for foreign direct investment, said Li Rongcan, assistant minister of commerce.

"These provinces have the advantages by linking the eastern and western China. This area is much capable to host more projects transferred from east coastal cities and overseas nowadays, which provides a good platform for multinational corporation in China."

According to the ministry, nearly $2.5 billion has been invested by foreign companies in this area first quarter of this year, which is 21 percent more than the same period of last year. Exporting used to be the economic growth in China, but domestic demand is the new growth now.

"Multinational corporations, which targets on China's inland market will consider different areas from the coastal cities, such as Hefei," said Zhang Qingjun, mayor of Hefei, at a recent forum in Zhuzhou, Hunan province about Chinese investment and trade.

"The government is driving the economic transformation and the investment movement from east to west. We need to keep eyes on that," Vets said, adding that more supplies will be provided by 3M China in the west in following three or four years.

"Going West is an opportunity to optimize the local supply chain system and deploy it as a while. But an increase in the number of plants may causes challenges in management, in which how to balance the resource and coordination among all plants to maximize the profits is the most important one."

Vets not only targeted in China's inland market, but also described 3M China as a localized multinational cooperation, and leading the business in a Chinese way.

"Go West, you need to work with Chinese government, always," said Vets, the only foreign member in the local leadership team.

A good governmental relationship not only helps foreign companies develop their local program successfully, but also makes these international managers feeling comfortable with the Chinese environment.

When a senior governmental official from the chemical park in Shanghai, where 3M China's headquarters are based, knew Vets is from Belgium, the official shared many stories on Belgium with Vets, which made Vets feel very comfortable.

But awkward situation also happens.

Vets was once invited to a hotpot dinner with a few local officials. When Vets realized that the food recommended was something he could never have — duck intestine and ox manypile, he hesitated.

"I never had them before, but I gave it a try eventually. It's chewy." Clearly, the relationship with local government not only developed his business but also his Chinese experience.

For Vets, the key element of supply chain does not emphasize on technology, but on people. "How to build an efficient working team and how to make people perfect their cooperation in such a complicated market is what supply chain needs to solve," he added.

3M has about 8,200 employees, who are considered as the greatest wealth in the American company.

On the second day Vets worked in his Chinese office, he was invited to a late meeting at 6 pm.

"I was the highest level manager in the meeting and the business was completely new to me. After their discussion, they want me to make a final decision," he said.

The culture shock makd Vets understand better on Chinese culture that people rely on senior managers to make decision.

"In my work, I encourage my team to speak out their ideas. At the same time, I am studying in Chinese for a better interaction with them. Building a trust between me and my Chinese team is very important."