LG BECOMES FIRST ASIAN COMPANY TO RECEIVE ISM R. GENE RICHTER AWARD Tweet

SEOUL -- LG Electronics (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 Institute for Supply Management™ (ISM), the largest supply management institute in the world, has been honoring excellence in innovative supply management since 2006. The Richter Awards recognizes organizations for best practice in the categories of People, Process, Technology, Sustainability, and Organization/Structure Category.

“To be recognized by ISM is a great honor for both LG and the team members who worked tirelessly to turn LG into a benchmark in the industry,” said Thomas K. Linton, Executive Vice President and Chief Procurement Officer of LG Electronics. “This award is testament that the efforts of procurement departments are without question a strategic contributor to an organization’s business success, most notably during times of economic downturns.”

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. Since its first Chief Procurement Officer was brought on board in early 2008, LG has been actively and swiftly transforming its supply management operation. 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.

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About LG Electronics, Inc.
LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer electronics, mobile communications and home appliances, employing more than 82,000 people working in over 115 operations around the world. With 2009 global sales of 55.5 trillion Korean Won (43.4 billion US Dollars), LG comprises of five business units – Home Entertainment, Mobile Communications, Home Appliance, Air Conditioning and Business Solutions. LG is one of the world’s leading producers of flat panel TVs, audio and video products, mobile handsets, air conditioners and washing machines. LG has signed a long-term agreement to become both a Global Partner of Formula 1™ and a Technology Partner of Formula 1™. As part of this top-level association, LG acquires exclusive designations and marketing rights as the official consumer electronics, mobile phone and data processor of this global sporting event. For more information, please visit www.lg.com.

[Photo Caption]
LG honorees (left to right): Jason Choi, Director of Global Procurement Strategy Team; Thomas K. Linton, Executive Vice President and Chief Procurement Officer; Chae Um, Vice President of Global General Procurement Team; Donna Zhang, Manager of Global Procurement Strategy Group and Reno Lee, Director of General Procurement Sourcing Team.

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