LG becomes first Asian company to be honored with the ISM R. Gene Richter Award
LG made history by becoming the first Asian company to be honored with the ISM R. Gene Richter Award for Leadership and Innovation in Supply Management. This is also the first time the award has gone to only one winner since the award was first established in 2006. The Richter Awards recognizes organizations for best practice in the categories of People, Process, Technology, Sustainability, and Organization/Structure Category. LG, nominated in the Organization/Structure category, was recognized by the ISM for reinventing its global procurement organization from a highly decentralized sourcing system to a center-led supply management organization.
Under the leadership of IBM veteran Linton, LG created a global procurement strategy, established cross-company commodity councils and installed a general procurement team, among other initiatives. These changes resulted in more than a billion dollars in savings in 2009, helping to better leverage procurement resources and link key commodities across all five LG companies.