Corning – September 2019

Page 1

C O R N I N G I N C O R P O R AT E D

Supply chain collaboration strategies in the manufacturing space


C O R N I N G I N C O R P O R AT E D 02

leveraging supply chain collaboration and procurement consortiums for a successful supply chain


03

w w w.c o rni n g . com


C O R N I N G I N C O R P O R AT E D

Tom Kruse, Global Head, Supply Chain Collaboration & Consortiums, Global Supply Chain Management at Corning Incorporated, discusses the importance of supply chain collaboration amidst its transformation journey in the manufacturing industry

A 04

s one of the leading innovators in materials science worldwide, Corning Incorporated is used to being in the

ascendency. Established in 1851, Corning has become a major heavyweight in the glass manufacturing space, with its products used in applications including smartphones, automotive interiors, large-size televisions and displays, and even pharmaceutical packaging. Tom Kruse, Global Head, Supply Chain Collaboration & Consortiums of Corning, understands the importance of procurement to his firm’s operations and believes it is considered a vital priority. “As a manufacturing company, supply chain and procurement are front and center of everything that we do,” says Kruse. “It’s an old adage, but every dollar that we save contributes directly to the bottom line of the company and reduces our adjusted manufacturing costs.”


05

“ As a materials science and technology manufacturing company, supply chain and procurement is front and center to everything that we do” — Tom Kruse, Global Head, Supply Chain Collaboration & Consortiums, Corning Incorporated

w w w.c o rni n g . com


C O R N I N G I N C O R P O R AT E D

06

Corning has a range of business

the suppliers via e-auctions and nego-

lines including products that serve and

tiations,” he says. “You can do value

enable the latest trends in the optical

engineering, optimize and manufacture

communications, mobile consumer

products more effectively, but what

electronics, life sciences vessels, auto-

we’ve found is the next threshold is

motive, and display markets. “Overall,

really to work with other like-minded

we manufacture a really mixed product

organizations and highlight the impor-

line with our clients, customers and

tance of supply chain collaboration

other multinational companies in mind,”

and to leverage procurement consor-

Kruse explains.

tiums where applicable. We can look

He stresses that the key to success is

at it from two ways in our collabora-

a clear procurement strategy. “There’s

tion: either combine our volumes if

only so many times you can keep going

our products align and go to market

to the well and reducing costs from

together or approach it from a suppli-


07

E XE CU T I VE PRO FI LE

Tom Kruse Mr. Tom Kruse is currently based in Singapore where he is the Global Head of Supply Chain Collaboration & Consortiums within the Global Supply Management organization at Corning. Mr. Kruse has over 20 years of strategic procurement and supply chain management experience in high-tech, manufacturing and service environments. He has lived and worked in three geographies, has established new Procurement organizations and developed and implemented Procurement transformation strategies.

w w w.c o rni n g . com


FREE Guide: Strategically Manage Spend and Increase Speed to Savings How Leveraging a GPO Will Bring Long-Standing Value to Your Business Purchasing professionals are constantly being tasked to do more with less. A few key items on the CPO's agenda are: 1. Uncover double-digit savings in unmanaged areas of spend. 2. Improve upon long-standing contract savings and service-levels 3. Benchmark results both current contracts and overall market trends 4. Satisfy end-user stakeholders’ priorities needs and goals.

Procurement is tasked to do all of the above (and more) while operating in an ever-evolving business environment. Group purchasing organizations (GPOs) can narrow the scope of priorities for procurement as they take on and deliver on the most important value drivers. In our guide, “Reshaping the Future of Purchasing,” you’ll discover the benefits and value-added drivers that you'll gain through GPO membership.

GPO 101 & FAQS

POWER

ACCESS

TRUST

Reshaping the Future o Purchasing f

Find out how an OMNIA Partn immense value ers membership to your organ can provide ization and procuremen will enhance t world. your

VIEW GUIDE


CLICK TO WATCH : WHERE IS CORNING? 09 er’s perspective and say: ‘We’re buying

seeking out new consortiums or Group

these 10 cubes of packaging from the

Purchasing Organizations (GPO’s), in

same suppliers that you’re buying from,

different markets to understand what

it’s just that you’re buying different

they’re doing and how we can benefit

products – but by combining our spend

by joining them,” explains Kruse.

together, we’re making it more attrac-

“Ultimately, we measure the savings by

tive to the suppliers’.”

evaluating the contribution to operat-

Corning has overseen a rapid trans-

ing margins (COMs) and decide how

formation in the number of consortia it

we can make them perform. Other than

has become involved in over the past

savings we need to ask ourselves: what

few years. Having participated in just

other value can we gain from them? For

one consortium two and a half years

example, we’re pursuing market intel-

ago, the company has experienced a

ligence, understanding best practices

major surge, with the figure increasing

and working with other organizations

to 11 in a short space of time. “We’re

to exchange information.” Some of w w w.c o rni n g . com


C O R N I N G I N C O R P O R AT E D

10

1851

Year founded

$11.4bn+ Approximate revenue

50,000

Approximate number of employees


11

w w w.c o rni n g . com


C O R N I N G I N C O R P O R AT E D

Intelligent | Connected | Predictive

WELCOME TO THE FUTURE OF PROCUREMENT WELCOME TO CHAIN IQ Cognitive Computing & AI

Predictive & Advanced Analytics

Distributed Ledger (Blockchain)

Smart Joint Sourcing

Robotic Process Automation

Cyber Tracking

LEARN MORE

CONTACT US

Corning’s key supply chain collabora-

manufacturing sector, companies must

tion partners include Chain IQ, who

adopt and embrace new technologies

is a leading global Sourcing Service

in order to remain a leader in the field.

Provider (SSP) and OMNIA Partners,

Kruse affirms how crucial digital trans-

the largest GPO in the US. “Both

formation is to Corning’s decision-

organizations have proven to be vitally

making processes moving forward.

important in our collaboration journey

“We have different internet platforms

and we work closely with them to

where we exchange information

seek out new opportunities across

externally with collaboration partners,

different markets and categories,”

suppliers, like-minded organizations

Kruse explains.

and customers,” he explains. “We’re

With the introduction of Industry 4.0

working on this with a great sense of

and the Industrial Internet of Things

urgency because we recognize that

(IIoT) over the past few years becom-

digitalization and digital transforma-

ing increasingly prevalent in the

tion are becoming vitally important to


us.” Whilst the implementation of new technology can often seem like a good idea, there is no value in introducing new systems that do not enhance the current processes already utilized by companies. Kruse affirms that the only way to achieve his company’s goals is by learning from mistakes. “You’re never going to

“You have to make technology useful for you in order to shape the direction you want it to go in” — Tom Kruse, Global Head, Supply Chain Collaboration & Consortiums, Corning Incorporated

13

than the current one you already have – you just have to use trial and error. You have to seek this new technology, try it, incubate it and keep what works for you as well as understanding how you can be consistently successful with all of

improve it to enable better practices.”

the different technological and supply

With sustainability in mind, Kruse rec-

chain collaboration elements,” he says.

ognizes how important recruitment

“It’s not a given that the new technology

is to ensuring long-term success at

you’re introducing is going to be better

Corning. “In my particular area, it all w w w.c o rni n g . com


C O R N I N G I N C O R P O R AT E D

Breakthrough Innovations 1879: Light Bulb Glass Corning developed the glass encasement for Thomas Edison’s lightbulb and a mass-production process that made them more widely available.

14

1947: Cathode Ray Tubes Corning revolutionized the television industry by inventing a process to mass-produce TV picture tubes. 1970: Optical Fiber Corning developed the very first opticle fiber capable of maintaining laser light signals over significant distances, paving the way for fiber optics in telecommunication. 2007: Corning ® Gorilla® Glass Corning developed a revolutionary glass that’s thin, light, and damage resistant, making it an ideal cover material for consumer electronics.


boils down to people. I have to

few years. “I think we just need to con-

constantly find the right peo-

stantly seek out new innovations and

ple in my organization to help

understand them as much as we can in

drive our collaboration and

order to help embed them into Corning

consortium interests forward,”

and make them work for us,” Kruse

he says. “I will then help to find

concludes. “You have to make technol-

and shape a successor who will

ogy useful for you in order to shape the

continue to drive this forward, adapt

direction you want it to go in.”

to change and modify when required to be changed.” Looking to the future, Kruse harbors clear goals of where he wants his supply chain and collaboration function to be over the next

15

w w w.c o rni n g . com


Corning Incorporated Abraham Lincoln Strasse 30 D-65189 Wiesbaden Germany T +49 611 7366 0 www.corning.com


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.