How We Source
Dow's global Purchasing function is organized into distinct areas of focus. Suppliers will interact with two main centers:
- The Strategic Sourcing Center, which has global responsibility for negotiating supply arrangements for Dow businesses, functions, Joint Ventures and other non-affiliate companies. This team develops supply strategies and negotiates contracts for purchases of raw materials, packaging, logistics, information systems, capital projects, labor, services and on-going operational needs.
- The Purchasing Business Process Services Center, which manages all transactional activities related to contract administration for raw materials, packaging, logistics, information systems, capital projects, labor and services. Accounts Payable activities are managed through this center. Contracts are implemented by geography, project, or Dow business/functional unit. This team collaborates closely with the Strategic Sourcing Center to ensure effective implementation of the strategies and contracts at the sites.
Who Can Source
To assure effective internal controls, Dow has delegated specific authority to two groups of employees: those with the authority to spend and those with the authority to commit.
- Authority to spend: These individuals have authority to approve purchase requisitions, which allows them to spend funds for certain projects or cost centers. They do not have the authority to commit Dow to any formal purchasing contracts.
- Authority to commit: These individuals are Global Purchasing Strategic Sourcing employees, who are officially authorized to commit the company to contracts and to place orders with suppliers. Therefore, all commercial discussions with Dow suppliers require the direct and full involvement of authorized Purchasing employees.
Global Purchasing is responsible for all purchasing arrangements with suppliers. From the supplier perspective, working with Dow Purchasing to become a qualified, approved or preferred supplier is the best possible scenario to position your company for sales to Dow businesses, functions, Joint Ventures and other non-affiliate companies.