Supply Management Leadership and Innovation Hailed

FOR RELEASE: May 8, 2006

ISM Media Contact:
Jean McHale
Public Relations Manager
800/888-6276, extension 3143
jmchale@ism.ws

Additional Media Contacts:
BP p.l.c.
Sarah McCartney
Communications & Engagement Manager
Refining & Marketing Procurement
+44 1932-762612
Sarah.McCartney@bp.com
DaimlerChrysler
Markus Mainka
Manager, Procurement & Supply and IT Communications
248/512-2729
mm1021@daimlerchrysler.com
Fluor Hanford
Geoff Tyree
Media Relations Manager
509/372-1145
Geoffrey_T_Tyree@rl.gov
Johnson & Johnson
Tina Gordon
Executive Director, Corporate Communications
732/524-3540
tgordon@corus.jnj.com
KLA-Tencor
Kyra Whitten
Senior Director
Corporate Communications
408/875-7819
Kyra.whitten@kla-tencor.com
Rockwell Collins
Nancy Welsh
Director
Public Relations
319/295-2123
nkwelsh@rockwellcollins.com


Inaugural ISM R. Gene Richter Awards for Leadership and Innovation in Supply Management Announced at ISM 91st Annual International Supply Management Conference

Note: For more information on the 2006 winners of the ISM R. Gene Richter Awards for Leadership and Innovation in Supply Management, refer to the 2006 Richter Award Winners page.

TEMPE, Ariz., May 8, 2006 — Innovative supply departments at six companies were publicly announced and honored in Minneapolis today at Institute for Supply Management™'s (ISM) 91st Annual International Conference and Educational Exhibit. Inaugural ISM R. Gene Richter Awards for Leadership and Innovation in Supply Management were presented at an invitation-only R. Gene and Nancy D. Richter Foundation Awards Dinner. Award-winning supply organizations were selected from applications received in four categories: Process; Technology; People; and Organization/Structure. The 2006 Richter Corporate Award recipients are:

  • BP p.l.c. (People)
  • DaimlerChrysler (Organization/Structure)
  • Fluor Hanford (Technology)
  • Johnson & Johnson (Process)
  • KLA-Tencor (Process)
  • Rockwell Collins (Technology)

Organizations of all sizes and geographic locations submitted applications, which were evaluated against pre-established criteria. An Oversight Committee composed of senior supply executives and academics approved final selection of winning entries that exhibited leadership and innovative thinking coupled with measurable organizational impact.

Named after supply management leader and innovator R. Gene Richter, the ISM R. Gene Richter Awards for Leadership and Innovation in Supply Management were established to recognize innovative supply organizations that through strong leadership have dramatically increased their contribution to organizational success. During his lifetime, Richter spread the message to keep out complexity and maintain flexibility. The following supply organizations' successes reflect the spirit of R. Gene Richter:

Johnson & Johnson (Process category)
Johnson & Johnson's Richter Award-winning submission detailed the successful collaboration between its law department and its World Headquarters Procurement Department. After working together for more than a year, the two groups developed and implemented a legal sourcing initiative that translated into companywide savings and customer satisfaction.

KLA-Tencor (Process category)
KLA-Tencor was recognized for innovations developed by its supply chain organization to establish more strategic and cross functional processes. The company's supply chain department led sourcing strategy and decision processes that, over the past four years, have resulted in product cost reductions of five to 10 times of what was achieved in the past, a 10-point improvement in supplier performance and a two-thirds reduction in the supply base.

Fluor Hanford (Technology category)
Fluor Hanford's supply organization was recognized for its success at developing a Web-based search application that gives end users a simple, quick, efficient tool for obtaining materials quickly and cost-effectively. The Material Sourcing Wizard search application makes the job of workers in the field easier and frees up supply chain operations staff for more strategic functions.

Rockwell Collins (Technology category)
Rockwell Collins' supply organization was recognized for a 2005 addition to its online strategy, the release of Electronic Request for Quote and Automated Purchase Orders (eRFQ/APO).

Before the new application was launched, the RFQ process could take up to a week and involve many employees on both Rockwell Collins' and the supplier's side. Now RFQs can be processed and awarded in about one day. All procurement groups across the company participated in the development process, along with the IT department.

BP p.l.c.
Energy company BP p.l.c.'s Richter Award-winning submission detailed its investment in developing the skill sets of key members of the procurement community through expert on-the-job coaching, tailored learning plans and peer learning groups. What would normally be three years of personal development for the program's participants is compressed into a rigorous six-month period. The program was rolled out in three waves beginning in July 2004 and concluding in September 2005.

DaimlerChrysler (Organization/Structure category)
DaimlerChrysler's Richter Award-winning submission detailed the consolidation of its global non-production material (NPM) procurement responsibility from 1999-2005. The initiative had impressive results including the implementation of innovative procurement tools and increased collaboration between plants and headquarters.

About the Richter Awards
The ISM R. Gene Richter Awards for Leadership and Innovation in Supply Management were established in late 2004 as a way to recognize innovative supply departments that through strong leadership have dramatically increased their contribution to organizational success. The Awards Program, sponsored by Institute for Supply Management™ (ISM), is designed to:

  • Identify and share leadership and innovation in supply management practice within supply management departments.
  • Provide recognition to supply management departments receiving awards.
  • Promote supply management as a strategic contributor to the organization.
  • Enhance the profession in the eyes of senior management.
  • Demonstrate leadership and innovation practice through conferences, ISM publications, case studies and other media.

"This unique and prestigious award will signify world-class stature for years to come," says ISM CEO and Richter Award Oversight Committee Member Paul Novak, C.P.M. "We're proud to bring to light and showcase innovative supply organizations and supply professionals through the R. Gene Richter Awards."

The second annual ISM R. Gene Richter Awards for Leadership and Innovation in Supply Management call for entries will open July 3, 2006. For more information visit www.ism.ws/RichterAwards.

Sponsors for the first annual ISM R. Gene Richter Awards for Leadership and Innovation in Supply Management are:

Platinum: SAS (www.sas.com), Procuri (www.procuri.com)
Gold: Ariba (www.ariba.com)
Silver: ADR International (www.adrna.com), Eclaro International (www.eclaro.com), IBM (www.ibm.com)
Bronze: Fieldglass (www.fieldglass.com), Perfect Commerce (www.perfect.com), Reardon Commerce (www.reardencommerce.com)

As the oldest and largest supply management institute in the world, the mission of the Institute for Supply Management™ (ISM) is to lead supply management. By executing and extending its mission through education, research, standards of excellence, influence building and information dissemination — including the renowned monthly ISM Report On Business® — ISM continues to extend the global impact of supply management. ISM's membership base includes more than 40,000 supply management professionals in 75 countries. Supply management professionals are responsible for trillions of dollars in the purchases of products and services annually. ISM is a member of the International Federation of Purchasing and Supply Management (IFPSM).