Business Process Automation Will Help Improve Efficiency and Accuracy in Supply Chain Process
   

KUALA LUMPUR, August 23, 2004 - The OPTIMAL Group of Companies (OPTIMAL) has received its first electronic B2B purchase order through the Elemica Network, marking the culmination of successful business process automation with The Dow Chemical Company (Dow) in the Asia Pacific region.

OPTIMAL, an affiliate of state-owned PETRONAS and Dow, the world’s leading chemical company, supplies several key petrochemical products comprising Performance Chemicals, Chemicals and Ethylene Glycol (EG) to Dow for its customers in the Asia Pacific region. 

OPTIMAL and Dow now have an electronically streamlined process for contractual buying and selling activities to be conducted securely over the Internet. This fully automated Order Fulfillment Process, established by a connection to the Elemica Network, allows Purchase Orders from Dow’s Diamond System to be transmitted electronically through Elemica’s hub and processed as Sales Orders in OPTIMAL’s SAP R/3 System. Through a single connection, OPTIMAL can initiate electronic transmission of an Order Response, Advance Shipping Notice and Invoice to Dow to complete automation of the business process and thereby reduce costs for both buyer and seller.

“We are excited to implement this connection with Dow. We believe this investment will reduce our costs and reduce errors in our order management process,” said Yeow Kian Chai, Vice President for Petrochemical Business, Petroliam Nasional Berhad (PETRONAS).

Jim Fitterling, Chief Executive Officer of OPTIMAL, said, “This is indeed a major step forward for OPTIMAL as it enables us to eliminate uncertainties and inaccuracies in the supply chain process and improve our speed and efficiency in responding to customers’ needs. It is a clear advantage which will help position OPTIMAL more competitively against other suppliers in the region.”

“This Dow / OPTIMAL integration will not only improve the efficiency and accuracy of the related transactions, but will also showcase this technology in the Asia Pacific region, providing a model for accelerating adoption of this global capability,” said Darrell Zavitz, Dow’s Global Director of Customer Interface. “Adoption of e-commerce continues to grow in Dow and what better way to test the first connection than with one of our own joint ventures. We are very excited to see the benefits both OPTIMAL and Dow will receive from this innovative approach.”

The project will bring tangible benefits to Dow and OPTIMAL. These include savings in operating expenses through automation, elimination of manual work and associated errors, and opening up future buying and selling activity via the internet for Dow in the Asia Pacific, and OPTIMAL in general.

“The implementation of Elemica marks a major advancement for both OPTIMAL and Dow as we strive to synchronize internal processes to improve customer service performance. Looking ahead, with the Elemica network implementation, OPTIMAL is poised for additional interface programs, enhancing its e-business capabilities and market reach in the Asia Pacific region,” Fitterling concluded.

About Dow

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of US$33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

About Elemica

As an enabler of inter-company commerce, the Elemica Network enables buyers and sellers of chemicals, and providers of related services to leverage their Enterprise Resource Planning (ERP) system investment. Designed to streamline procurement and order fulfillment processes and remove uncertainty in the supply chain planning process, the Elemica Network delivers sustainable cost savings. Through a single enterprise connection to Elemica, companies can increase demand visibility and collaborate effectively with partners and automate their business processes. This enables efficient inventory management at customer and distributor locations, optimum product delivery schedules and shipments, improved production planning, and lower costs throughout the supply chain.

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