Integrated Supply Chain

Transcription

1 Integrated Supply Chain Helping Dow grow and thrive in an ever-changing, highly competitive business environment Dow.com

2 Key Facts About Dow 2016 Sales of $48.2 Billion Agricultural Sciences Consumer Solutions Infrastructure Solutions Performance Materials & Chemicals Performance Plastics Dow Sites Around the World Corporate Stats ~56,000 employees >7,000 product families Sales in 175 countries 2

3 Dow Vision Mission Vision To passionately create innovation for our stakeholders at the intersection of chemistry, biology and physics Maximize long-term value per share by being the most valuable and respected science company in the world Strategy Invest in a market-driven portfolio of advantaged and technology-enabled businesses that create value for our shareholders and customers Capitalize on low-cost and value-add products, enabling superior value creation throughout the cycle Participate in attractive markets and geographies with deliberate value chain positions Grow downstream, value-add solutions enabled by world-class technology platforms and innovation capabilities Drive low cost to serve via scale and leverage integrated sites for a defined portfolio of chemical and plastic materials Reward shareholders via attractive dividends and share repurchases 3

4 Addressing World Challenges By 2030, water needs are expected to grow There will be more mouths to feed by 2025 GDP growth will continue to drive energy consumption Of the world s population will live in water scarce regions by 2020 Global food demand will increase between 2000 and 2050 Demand should increase by in the next 15 years Through Through strong strong collaboration and and innovation innovation the that intersections extract value of from chemistry, material, biology polymer, and chemical physics, Dow and biological scientists science, are delivering Dow is delivering the value the our value customers our customers want and want solutions and solutions the world the needs. world needs. Packaging Energy/Water Infrastructure Transportation Consumer Durables & Industrial Packaging Water Electronics Transportation Agriculture Providing solutions to Tackling water and Enabling buildings Contributing to Helping to achieve Helping safely close the keep foods fresher, Providing and customers energy a challenges Tackling water that are energy- Enabling next-generation lighter, more Contributing solutions to for healthier Helping achieve resource higher loop and to improve material unique ability to sustainable ways challenges efficient in a and resilient semiconductor fuel-efficient and cars lighter, more fuelefficient cars pharmaceuticals plant and biotechnology and foods, effective yield potential improve through efficiency efficiency across collaborate the with the sustainable way display materials for a value chain launch of Pack Studios connected world active lifestyles crop protection 8 4

5 Dow Is in Transition Competitive marketplace Rapidly changing business environment Major growth initiatives Transformed business portfolio E v e r - i n c r e a s i n g p r o d u c t i v i t y Industry-leading integration Volume growth Highest safety and sustainability standards 5

6 ISC delivers competitive advantage for Dow through outstanding performance across the value chain helping Dow grow and thrive. 6

7 What Is ISC? Dow s ISC is an interwoven network of services and capabilities that enables Dow to ensure an effortless customer experience. This network includes: Asset Operations Customer Service Diamond System Solutions Order Management Operations International Trade Operations Business Supply Chain Transportation Safety & Security Logistics/Site Logistics Technology Centers 7

8 What Is ISC? 8

9 ISC: Delivering Competitive Advantage Through Outstanding service Continuous improvement Operational excellence Embedding sustainability in all we do Strong safety performance Innovative supply chain design Well-designed and executed order-to-cash work processes 9

10 Driving End-to-End Sustainability Dow s ISC plays a critical role in driving sustainability across the value chain: Developing world-leading transportation stewardship programs Implementing and measuring green transportation Setting high expectations for our customers, suppliers and partners 10

11 ISC Is Busy Every Day Each day, Dow s 4,600 ISC employees handle 6,000 7,800orders shipments 30,000 transactions 5,400invoices 11

12 Meeting Customer Expectations Moving 60 million tons of product each year 21,000 rail cars (leased or owned) Small vials to bulk shipments 45,000 customer locations in more than 100 countries More than 600 third-party terminals and warehouses 99.97% incident-free 12

13 Investing in Our People Building an empowered and engaged ISC workforce: Ongoing employee development People leader training Mentoring opportunities Diverse career paths Global cross-functional project teams 13

14 Delivering the Supply Chain of the Future, Today We re transforming the customer experience through: Technology Digitization Automation 14

15 International Supply Chain Operations Dow.com 15

16 Why is Trade Compliance critical? 1. A trade compliance program provides the groundwork to ensure legal obligations are met, compliance is a moving target due to constant regulatory change 2. Not having a compliance program increases exposure to penalties 3. A compliance program will save you money by avoiding border delays and taking full advantage of duty savings

17 Achieving Compliance and saving $$$ Restrictions Countries End Use Container prefixes Business Partners Country Specifics Documentation requirements Fast Track Customs Reliable importer status AEO / C-TPAT Duty Optimization Free Trade Agreements Duty Drawback 17

18 Thank You