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Purchasing
| Total Purchases 2003 (Percentage by Region) |
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| Globally, Dow spent $30.5 billion in 2003 on purchases, including energy, feedstocks, and capital spending. We are fully aware of the impact many of our purchases can have on a given local economy; but, as a competitive, global enterprise, we have to find a responsible balance between supporting the local economy and actively managing our costs to a minimum. For certain products this means consolidating purchases and buying in great volume independent of the location of the supplier. However, we also purchase products and services that are, by their very nature, bought locally, such as contract labor and certain maintenance activities. |
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2002 purchases were "calculated" based on backing out Salaries & Wages and Depreciation from Dow's Income Statement, then allocating the "buy" based on Replacement Asset Base (RAB) percentages by area. 2003 purchases were extracted from the Vendor Invoicing and Purchasing database, providing a summary of all payments made by Dow via SAP, summarized by area.
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