Describe the benefits of creating a research alliance for future raw materials or supplies.

Goodyear Tire Genencor: A Sweet Alliance
For many years, tire manufacturers like Goodyear have relied on synthetic rubber as a supplement to the natural rubber used to make truck and automobile tires. The basis of synthetic rubber, produced on a global scale, is a chemical called isoprene, which is a volatile, toxic hydrocarbon that is a byproduct from refining crude oil. Isoprene is bad for the environment and its production relies on the availability of crude oil for refining. Until recently, there wasn’t a real alternative— Goodyear still needed to purchase its raw materials for the manufacture of its tires, including the isoprene-based synthetic rubber. But researchers at Genencor, an industrial biotechnology firm headquartered in Rochester, New York, have come up with the answer—a way to produce synthetic rubber from sugar instead of refined oil waste. Goodyear is so convinced of this solution that the firm has established a collaboration with Genencor.
An intensive search has been underway for years for alternative sources of isoprene, in particular those from renewable resources such as biomass, explains John McAuliffe, a scientist with Genencor. The method developed by Genencor involves the fermentation of sugar cane, corn, corn cobs, and switch grass to create a new product called BioIsoprene™, which will become the basis for synthetic rubber in the next few years. Goodyear, which makes 200 million tires annually, has been one of the world largest users of iosoprene—so the conversion to Genencor BioIsoprene™ will be significant. We want to make biochemicals from renewable materials, notes McAuliffe, partially as a hedge against rising crude oil prices and much more so because this approach moves us to a more sustainable future. Genencor has made the first delivery of BioIsoprene™ to Goodyear, which will begin to incorporate it into its manufacturing process, resulting in greener tires that will hit the road soon. Both firms see the collaboration as a win–win for all, including consumers. We believe it important to look at alternative renewable raw materials in our production processes, says Jesse Roeck of Goodyear. We chose to work with Genencor based on our strategy of open innovation because they are one of the leaders in industrial biotechnology.
Questions for Critical Thinking
1. Describe the benefits of creating a research alliance for future raw materials or supplies.
2. Investing in a future with a supplier requires planning. How might this decision affect other aspects of the production process?