Dow Chemical Co.

Company reduces costs by gaining tight control over use, maintenance and capital projects.

Published on 20-Mar-2013

"An integrated workplace management system proved to be a critical platform for improving performance throughout the real estate and facilities portfolio. We transformed the way we plan and manage projects and costs, resulting in large-scale savings." - Frank Kayden, director of Global Portfolio Planning and Real Estate, Dow Chemical Co.

Customer:
Dow Chemical Co.

Industry:
Chemicals & Petroleum

Deployment country:
United States

Solution:
Asset Management, Consolidated Operations Management , Energy Efficiency, Smarter Planet

Smarter Planet:
Smarter Buildings

IBM Business Partner:
Computerized Facility Integration, LLC, Esri

Overview

Incorporated in 1897, Dow Chemical Company is an international chemical-manufacturing business headquartered in Midland, Michigan. Operating in more than 197 office locations across 36 countries worldwide, the company generates annual sales of approximately USD60 billion.

Business need:
Each unit operates autonomously and manages its own facilities and projects. This decentralized corporate structure made it challenging for the company to increase space capacity use, improve capital planning, manage real estate leases, streamline operations, and reduce energy consumption in facilities throughout the enterprise.

Solution:
The solution seamlessly integrates space management, capital projects and facility maintenance, providing a single system to improve facilities-related operating and financial performance.

Benefits:
Increases facility use by 20 percent, saving approximately USD4 million a year

Case Study

Incorporated in 1897, Dow Chemical Company is an international chemical-manufacturing business headquartered in Midland, Michigan. Operating in more than 197 office locations across 36 countries worldwide, the company generates annual sales of approximately USD60 billion.

The Opportunity
Employing more than 52,000 people in nearly 200 locations worldwide, Dow Chemical Co. has 30 business units across 20 million square feet of lab and administrative office space. Each unit operates autonomously and manages its own facilities and projects. This decentralized corporate structure made it challenging for the company to increase space capacity use, improve capital planning, manage real estate leases, streamline operations, and reduce energy consumption in facilities throughout the enterprise.

What Makes It Smarter
Dow sees its real estate as a key strategic asset and uses an advanced integrated workplace management solution to gain tight control of its facilities worldwide. The solution seamlessly integrates space management, capital projects and facility maintenance, providing a single system to improve facilities-related operating and financial performance. The company not only gains a holistic view of its real estate performance but can also identify program funding priorities and analyze large-scale capital project risks with automatic project management controls within minutes versus several months. And integrated digital floor plans help capture previously inaccessible facilities space usage data for transforming space use and real estate management processes from reactive to proactive. Based on new insights, Dow can redefine office standards and densifications, allowing it to accommodate growth without leasing more space. In one instance, it added 5,000 employees to an existing facility without incurring real estate costs.


Real Business Results

  • Increases facility use by 20 percent, saving approximately USD4 million a year
  • Identifies savings of more than USD200 million in facility-related costs for a relocation project
  • Reduces facilities report compilation time from days to hours


For More Information
Please contact your IBM representative or IBM Business Partner. Visit us at ibm.com/software

To learn more about Dow Chemical Co., visit www.dow.com

Products and services used

IBM products and services that were used in this case study.

Software:
IBM TRIRIGA Capital Projects Manager, IBM TRIRIGA Workplace Operations Manager, IBM TRIRIGA Connector for ESRI Geographic Information System, IBM TRIRIGA Facilities Manager, IBM TRIRIGA CAD Integrator/Publisher, IBM TRIRIGA Real Estate Environmental Sustainability Manager

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America February 2013 IBM, the IBM logo, ibm.com and TRIRIGA are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml. This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data discussed herein is presented as derived under specific operating conditions. Actual results may vary. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.