Dow reimagines productivity and supply chain efficiency with Microsoft 365 Copilot

Dow, a global leader in materials science, has long envisioned sustainable innovation and operational efficiency as critical to business. Dow recently identified an opportunity to optimize cost management and supply chain processes. To reinforce its industry leadership, Dow recognized the potential to enhance the accuracy and efficiency of its logistics spending, aiming for outcomes that positively affect both business operations and environmental goals.

Transforming logistics with Copilot

As part of this vision, Dow implemented Microsoft 365 Copilot to empower teams with AI-driven insights and streamline essential workflows. Initially launched with a few hundred employees, the success of Copilot led to a rapid expansion, reaching 20% of Dow’s workforce to date. “We’re doubling down on Copilot by educating our employees even further so they can get more productivity out of the capabilities,” states Melanie Kalmar, Corporate Vice President, Chief Information Officer, and Chief Digital Officer at Dow.

One of the most promising opportunities for Copilot has been in freight cost reduction, a critical area given Dow’s multibillion-dollar logistics spend. “In our initial efforts, Copilot reviews freight rates, accrued costs, and invoice rates to ensure they align with negotiated terms and identify places for correction,” explains Tami Sowle, Logistics Operational Excellence Manager at Dow. Copilot automates bulk reviews of invoices and flags any discrepancies in real time, preventing costly overcharges and freeing team members to focus on more strategic tasks. “Now with Copilot, discrepancies are highlighted instantly, which allows us to correct issues more proactively,” Sowle continues. This preemptive approach is saving both time and resources, reinforcing Dow’s commitment to streamlined operations and sustainability.

For Radhika Tawade, Innovation Specialist at Dow, Copilot has brought improvements beyond efficiency, changing how she approaches project research. “I used to spend hours gathering data and reading reports,” she observes. “Now, Copilot shortens that process by presenting relevant insights and helping me ask new questions.” This capability has enabled her to shift from extensive data gathering to delivering informed recommendations more quickly, redirecting her to focus on more meaningful aspects of her role.

Shaping a smarter supply chain with AI agents

Dow is optimizing logistics and seeking to cut costs with two supply chain agents. The prompt-and-response agent analyzes freight invoices, flagging discrepancies with an aim to significantly reduce costs. “We're using Copilot to automate shipping invoice analysis,” explains Sowle. “By optimizing this process, we anticipate Copilot will save us millions of dollars on shipping operations in the first year.” Meanwhile, the autonomous agent, built in Copilot Studio processes PDF invoices from email, automatically detecting and routing mismatches for correction around the clock. Together, these agents advance Dow’s commitment to operational excellence and their exploration of additional use cases across the supply chain.

“We’re using Copilot Studio to create and connect agents to Copilot, helping drive an autonomous and sustainable supply chain and ensuring our operations remain effective for the customer, efficient for Dow, and sustainable for the environment,” notes Jeff Tazelaar, Global ISC Innovation Director at Dow. “The system is helping us not only audit and analyze but align our processes with broader goals around cost efficiency and sustainability.” He explains that with an annual freight spend topping several billion dollars, Copilot and agents help digitally identify overcharges. “We’re transforming how we work, not just making tasks easier,” reflects Mike Weideman, Senior IT Director at Dow. “Copilot helps us drive digital literacy and productivity, which brings our Digital Dow strategy to life.”