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Supply chain collaboration strategies in the manufacturing space
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leveraging supply chain collaboration and procurement consortiums for a successful supply chain
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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
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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.”
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“ 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
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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-
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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.
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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
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1851
Year founded
$11.4bn+ Approximate revenue
50,000
Approximate number of employees
11
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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
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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
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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.
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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
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Corning Incorporated Abraham Lincoln Strasse 30 D-65189 Wiesbaden Germany T +49 611 7366 0 www.corning.com