Specialty Products Division

Transcription

1 Specialty Products Division Supplier Town Hall October 2018 Dow.com

2 Specialty Products Division - Townhall Objectives Understand DowDuPont merger and separation into three companies Understand actions required of our suppliers Bring awareness of the resources available to assist suppliers Ensure suppliers understand where they can gain assistance from Dow with questions 2

3 DowDuPont Merger and Spin into Three Companies Pre-Merge Merge Post-Merge DowDuPont New Dow (Materials Science Div) Corteva Agroscience (Agriculture Div) New DuPont (Specialty Products Div) Past Present Future 3

4 How is each company preparing for spin? Materials Science Division Specialty Products Division Agriculture Division Dow Specialty Division Stand Up Electronic Materials - Completed 2017 Addt l Businesses - NA & EMEAI, Nov 2018 Add l Businesses - LA & APAC, Feb 2019 Dow Agriculture Division Stand Up All Business - Completed 2017 Materials Science Division Specialty Products Division Agriculture Division What is stand up? When a company segments aligned business resources (assets, liabilities, costs, revenue streams, employees, etc.) in preparation for a spin. This process is often referred to as a carve-out or carve-up. In Dow, this includes moving businesses into separate Enterprise Resource Planning (ERP) tenant environments (business operating software) and new legal entities that more easily enable the transition from operating division (standup) to independent companies. You may hear heritage DuPont employees use the term Go Live to describe the activities of realigning within new ERP tenant environments and legal entities.

5 What happens at Legal Entity Tower Realignment? Materials Science Division Dedicated Dow Legal Entities Specialty Products Division Dedicated Dow Legal Entities Materials Science Division Dedicated DuPont Legal Entities Specialty Products Division Dedicated DuPont Legal Entities Agriculture Division Dedicated Dow Legal Entities Agriculture Division Dedicated DuPont Legal Entities Tower Realignment: Tower Realignment is where the legal entities aligned to each division are moved between heritage companies and are aligned into the future state, but all three divisions still reside under the DowDuPont holding company. For example, at tower realignment the legal entities for the Specialty Products Division and Agriculture Division under Dow will move to DuPont and the legal entities for the Materials Science Division under DuPont, the Ethylene CoPolymers or ECP business, will move over to Dow.

6 What happens at Spin? Materials Science Division Specialty Products Division Agriculture Division All Dedicated Materials Science Division Legal Entities All Dedicated Specialty Products Division Legal Entities All Dedicated Agriculture Division Legal Entities Dedicated hdow Legal Entities Dedicated hdupont Legal Entities Dedicated hdupont Legal Entities Dedicated hdupont Legal Entities Dedicated hdow Legal Entities Dedicated hdow Legal Entities

7 Dow Businesses in Scope for Specialty Products Pharma & Food Solutions Silicones* Water & Process Solutions BUSINESSES Building Solutions Microbial Control *Several silicones-based businesses aligned with applications in industrial LED, semiconductors, medical, as well as Molykote brand lubricants for automotive and industrial equipment and Multibase Inc, which provides solutions for the thermoplastic compounding industry. Automotive Systems Adhesives & Fluids Platforms 7

8 Future DuPont Specialty Products Division 8

9 Dow Specialty Products Division Transition Dates November 1, 2018 Europe, Middle East, Africa, India, Canada & United States February 1, 2019 Latin America & Asia Pacific 9

10 Suppliers should minimize shipments during the defined Shipping Holiday (limited Dow receiving) October 31 November 5 Europe, Middle East, Africa, India, Canada & United States January 31 February 5 Latin America & Asia Pacific What is a shipping holiday? During the time in which Dow is performing the technical system cutover, we would ask for minimal shipments from suppliers to be sent to Dow locations. We ve recommended businesses submit pre-orders to manage through the receiving/shipping holiday period. Only critical orders would be expected during this timeframe. What actions are needed? If supplier shipments are scheduled during this timeframe, please reach out to the plant to reschedule the shipment date. 10

11 Dow s businesses in the Specialty Products division will begin doing business under new legal entity names Items Changing November 1, 2018 and February 1, 2019 Legal Entity Name Tax Registration and VAT Numbers Items NOT Changing November 1, 2018 Invoice to Address including Mail to address and address Items Changing on a future date Invoice to Address including Mail to address and address 11

12 Visit our website for Supplier Information Overview Opt-In Legal Entity Cross Reference PO Cross Reference Checklist Contact Us FAQ 12

13 Use our new OPT-IN to be notified when new content on our Supplier Website is available Opt-In to supplier website Complete items on checklist Important: legal entity cross reference Dow contacts Understand Purchase Order separation between Dow and Specialty Products Division Requires legal entitiy name change 13

14 New Purchase Orders (PO) Will Be Issued Why is a new purchase order issued? New POs will be created for open POs for Specialty Products Division to reflect the change in legal entity name However, the new PO will not be transmitted to the supplier and in most cases replaces the existing PO Use new PO number on shipping notices and invoices to avoid payment delays When will a new purchase order number be issued? Open POs moving to the Specialty Products Division as of end of business on October 31, 2018 or January 31, 2019 A PO Cross Reference will be available on the supplier website the week of November 4, 2018 or February 4,

15 Purchase Order (PO) Cross Reference Will Be Available Why is there a PO Cross Reference? The PO cross reference displays the old vs new PO number that should be referenced on invoices to avoid payment delays How to use the PO Cross reference? On the supplier website there will be a link to the Purchase Order Cross Reference. You will be able to look up your PO number to obtain the new PO number. OLD PO Number New PO Number PO Line Item # Old Company Code Old Legal Entity Name Old Legal Entity Country New Company Code New Legal Entity Name New Legal Entity Country 15

16 Invoices Could Be Returned to Vendor (RTV) Invoice requirements may differ per country Generally, if the invoice lacks legally required information, the invoice will be returned to the supplier, typically within 5 business days, requesting a new invoice with the correct information. General Requirements Full legal entity name and address of the invoicing company VAT Registration ID of the invoicing company Correct Invoice-to address of the Dow company Invoice number and date Purchase order number, if applicable Date or period goods/services were delivered/provided Description of goods/services delivered/provided Invoice value and currency VAT amount and VAT rate If an invoice is returned to you, please resubmit the invoice with the correct legal requirements. 16

17 Some Purchase Orders May Be Split A split order will occur: A split PO may occur if different line items on the PO apply to both Materials Science Division and Specialty Products Division. This scenario will primarily occur for service purchase orders created for an extended validity time (i.e. contingent staffing, contract labor, full labor services procurement (LSP) suppliers) How will this be handled: The original PO will remain with the Materials Science Division and PO line items that apply to the Specialty Products Division will be closed. A new PO will be created for the line items applicable to the Specialty Products Division. Both the original and new POs will remain open and valid. The Specialty Products Division POs will have new legal entity names and tax registration numbers. If it is a split order: Supplier needs to create 2 invoices against 2 different legal entities. Please contact your site focal point to get directions on how to split invoices. 17

18 Changes for Freight Suppliers Differ by Solution Oracle Transportation Management Specialty Products Division outbound freight invoices currently being billed through Dow s OTM (Oracle Transportation Management) will now be billed using Specialty Products Division s OTM. You will be provided login credentials for Specialty Products Division s OTM at go live CASS Specialty Products Division outbound freight invoices currently being billed though Dow s Cass shipper number will need to be billed to a new Specialty Products Division shipper number. You will receive an updated Carrier Billing Guide with Cass shipper numbers prior to go live Veraction Specialty Products Division inbound freight invoices currently being billed though Veraction will need to be sent directly to Dow post go live. You will receive an updated Carrier Billing Guide with invoice directions prior to go live. 18

19 Actions for Suppliers How to Handle POs During the Transition Period Invoices sent PRIOR to November 1 st No action is required from suppliers and the old PO number can still be used Invoices sent AFTER November 1st Use the cross reference to submit invoices with the new PO number and legal entity name. Invoices sent PRIOR to February 1 st No action is required from suppliers and the old PO number can still be used Invoices sent AFTER February 1st Use the cross reference to submit invoices with the new PO number and legal entity name. 19

20 Additional Resources FAQ on Supplier Website Procure to Pay Operations service desk for questions related to invoice payment or purchase order Strategic Sourcing focal point for questions related to Purchase Contracts Use the contact form on the supplier website for questions related to the DowDuPont merger

21 Feedback & Reminders Be sure you have opted-in to the supplier website! Complete items on checklist Create new customer entities based on the legal entity names identified in the company cross reference 21

22 22 Thank You