Transactional Service Standards

Questions and Answers

What are transactional service standards?
When do these standards and policies become effective?
Why were these ordering and shipping policies developed?
Will Dow charge for services that have historically been offered without additional charge?
Which products are affected by these standards and policies?
Which customers are affected by these standards and policies?
What if I order a quantity that is under the minimum quantity or need a service that is no longer offered?
Which order and shipping standards and policies have been standardized?
Are other chemical companies implementing similar policies in North America?
Has this been reviewed with distributors and carriers?
How do I find out more about these standards and policies?

What are transactional service standards?

Dow's transactional service standards are core policies providing a consistent approach to ordering and shipping chemical product lines in North America.

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When do these standards and policies become effective?

July 1, 2005.

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Why were these ordering and shipping policies developed?

The transactional service standards were developed in response to many recent changes in carrier capabilities, capacity, and cost of transportation services — as well as our desire to make doing business with Dow simpler.

The transportation industry has evolved greatly in the recent past, from changes in trucking regulations to shortages of transportation equipment and drivers, from escalating shipping and logistics costs to increasing lead time requirements. After careful examination, Dow has better matched its policies to the transportation industry’s current offerings, and determined offerings that are no longer economically feasible. In addition, Dow is striving to simplify and standardize our order fulfillment practices across our portfolios and businesses.

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Will Dow charge for services that have historically been offered without additional charge?

In some cases, yes. Dow has aligned the standard services to match current transportation industry norms, and Dow continues to absorb the cost of these services. The services outside these norms are valuable to select customers only. In these instances, Dow has chosen to use a “charge for use” approach, helping to keep the delivered cost for standard offerings as low as possible, while maintaining the fairest approach to all customers.

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Which products are affected by these standards and policies?

Chemical products in Dow’s Chemicals & Intermediates and Performance Chemicals & Thermosets (C&I/PC&T) portfolio sold to customers in North America (U.S. and Canada). In general, affected products include those in the following businesses: Specialty Chemicals, Water Soluble Polymers, ANGUS, Biocides, Epoxy Products & Intermediates, Polyurethane components, Latex, Calcium Chloride, Chlorinated Organics, Acrylics, Solvents, Intermediates, Propylene Oxide/Propylene Glycol, and Chlor-Vinyl.

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Which customers are affected by these standards and policies?

All of Dow’s direct customers and distributors in North America who are buying chemicals are impacted in some way by these standards and policies.

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What if I order a quantity that is under the minimum quantity or need a service that is no longer offered?

Dow can recommend a distributor best suited to meet your needs, based on the products purchased and the geographic location(s). Dow recently implemented a Channel Partnership Program to enhance its relationship with its distributors and clearly identify their strengths. This project included a thorough analysis of distributors’ capabilities, offerings and expertise and allows us to make these recommendations with confidence.

If you would like a recommendation on a distributor who can best serve your needs, please contact your Dow Sales or Customer Service representative.

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Which order and shipping standards and policies have been standardized?

Order and shipping standards and policies have been standardized for:

  • Compartmented tank trucks
  • Destination points
  • Detention
  • Lead time
  • LTL/Liquid drum offering and price schedule
  • Maximum loads
  • Maximum products per shipment
  • Minimum order quantities
  • Source points
  • Standard and special equipment
  • Typical delivery windows

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Are other chemical companies implementing similar policies in North America?

So far in 2005, a number of chemical companies have announced plans to do so. Given that all chemical companies are facing the same transportation market dynamics (shortage of trucking capacity and railcars, rising fuel costs, etc.), it is not surprising that changes are occurring across the industry.

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Has this been reviewed with distributors and carriers?

Dow has conducted high level reviews with its major distributors indicating the strategy and direction of the changes. These standards and policies have also been heavily influenced by the most recent discussions and negotiations with our truck carriers.

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How do I find out more about these standards and policies?

For details of each policy, visit the Transactional Service Standards Documents webpage. If you have additional questions, please contact your Dow Sales representative or your Dow Customer Service representative at 1-800-232-2436.

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