The new global DSM purchasing organization which was set up in 2006 enabled us to futher professionalize our purchasing acitivities and to leverage our purchasing competences, realizing a better total costs of ownership and a corresponding competitive advantage. The execution of the DSM purchasing strategy is being supported by standard processes and systems.

DSM Purchasing realized its targets for the year. During the year risk management (security of supply) and building strong business intelligence were key topics, while the focus was also on business growth and innovation. In cooperation with the DSM Innovation Center, the innovation process was further developed, resulting in a number of innovative projects.

DSM’s strengthening position in emerging economies also opens opportunities for DSM Purchasing. Our Low Cost Country Program proved to be successful and won us the Dutch Sourcing Award.

DSM Purchasing has developed a code of conduct for suppliers. This code will help suppliers to comply with DSM’s high standards. In this code, the minimum requirements regarding social and working conditions and safety, security and environmental aspects are prescribed. This code of conduct is part of the comprehensive program that has been developed in order to embed sustainable performance in all our supply-base processes and procedures. At year-end 2007, more than 500 key suppliers had been approached, covering 52% of spend. The second phase is underway in order to cover 70% of spend and to implement auditing procedures.