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For LG and Suppliers, 'Win-Win' During Recession Is A Realistic Outcome

 

During a time when many global companies are laying off employees and pressuring suppliers to cut prices even more, LG’s unique solution is to become even more collaborative with its partners. LG, a global leader and technology innovator in consumer electronics, announced this business strategy at the second LG Electronics Global Suppliers Day where the company’s executives met with over 400 representatives from supplier companies in Changwon, Korea.

This annual event allows LG to forge closer relationships with global partners and helps shore up the competitiveness of all companies involved. This is especially important during an economic downturn. Along with LG Electronics CEO Yong Nam, Chief Procurement Officer (CPO) Tom Linton, the heads of LG Electronics’ five business units and major suppliers such as Qualcomm, Toshiba Semiconductor Company Group and Hitachi Media attended the event.

“Fair and transparent management and trade are an essential to building a strong company,” said CEO Yong Nam. “Collaboration and partnerships are more important these days as those are ways to allow us to get through the economic downturn and to be fully prepared for the future.”

CPO Linton added, “Our partners’ competitiveness is directly related to LG Electronics’ competitiveness. We will continue to invest in technology, innovation and manpower to strengthen the competitiveness of LG as well as our business partners.”

At the event, LG and partner companies discussed ways to strengthen respective capabilities by establishing win-win collaborative strategies for each business unit. They also agreed both LG and its partner companies would proactively address environmental issues and collaborate on the development of eco-friendly products. LG presented eleven awards to its best suppliers, including Taiwan-based MStar Semiconductor Inc., which received the top global supplier award for its contribution to enhancing LG’s display products. LG and partner companies also came together to hold a silent auction fundraiser to raise money by auctioning donated memorabilia from LGE Global Suppliers Day guests with proceeds being donated to UNICEF.


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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 84,000 people working in 115 operations including 84 subsidiaries around the world. With 2008 global sales of USD44.7 billion, LG is comprised of five business units –- Home Entertainment, Mobile Communications, Home Appliance, Air Conditioning and Business Solutions. LG is the world’s leading producer 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 and a Technology Partner of Formula One™. 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.