Understand Purchasing
We cordially invite you to become, or continue to be, one of our suppliers.
At The Principal®, we seek business partners who can help us improve our competitive edge in the global marketplace. We seek suppliers with a reputation for quality, customer service, strength and integrity - the same core values which are the basis for our company's success. We want to meet and work with suppliers whose contributions will be measured in terms of shared values and goals. And whose talent, innovation, resources and expertise can meet not only our immediate needs, but also provide added value for many years to come.
- Scope of Opportunity
- How We Purchase
- Product Evaluations
- How We Do Business
- Business Meals and Gifts
- Entertainment
- Factory/Supplier Trips
- Bidding Practices
- Accounts Payable
Scope of Opportunity
We invite all suppliers to review this document, which is a complete guide on how to do business with the Principal Financial Group®.
Our essential requirements from our suppliers are:
- The on-time delivery of quality products and services.
- Competitive prices.
- Proactive support for your products and services.
A few of the products and services we purchase include:
- Aviation Equipment/Services
- Computer Equipment
- Computer Software
- Envelopes
- Facilities Management Products and Services
- IT Consulting
- Media Services
- Office and Computer Supplies
- Office Equipment
- Office Furniture
- Paper
- Printing Services
- Promotional Items
- Security Services
- Signage
- Telecommunication Services
If those points describe you, your products/services and the way you do business, our buyers want to talk to you!
How We Purchase
All purchasing practices and activities are monitored by the Strategic Sourcing department; however, we have decentralized purchasing areas with several buyers who have the authority to purchase items for specific needs. These areas are Publishing Services, Information Services Purchasing, Move Coordination Services, Facilities Management, and Strategic Sourcing.
We purchase a variety of items to satisfy the needs of our customers -- the employees of the companies of the Principal Financial Group. Computer hardware, software, printers, paper, janitorial services, furniture, office supplies, security guard services, lumber, electrical and plumbing supplies, printing services, photocopiers, phone systems, vending equipment and promotional items are just an example of items we regularly purchase.
Product Evaluations
Individual purchasers and task forces are responsible for evaluating products and services for our company. Samples, models and demonstrations that you can provide are helpful in this process.
How We Do Business
The Principal Financial Group conducts business to the highest standards of ethics and fairness. The ability of our business units to meet their goals depends, in part, on the relationships developed with the various individuals and companies providing products and services to The Principal. It is imperative to maintain the integrity of a mutually beneficial business relationship.
Our non-acceptance policy is structured to strengthen business relationships between suppliers and buyers at The Principal. Accepting gifts, favors, and entertainment are not conditions for doing business with us.
Business Meals and Gifts
We do not accept gifts of any nature (including advertising novelties or similar items of nominal value), lunches, or other special considerations which may result from any business relations. Please refrain from offering gifts.
Entertainment
Social events are often part of the agenda at conferences and seminars. Attendance at these events is considered acceptable business practice. We do not accept invitations for trips or events with the primary purpose of entertainment (for example, golf outings, sporting events, theater tickets, dinners, etc.).
Factory/Supplier Trips
Occasionally, a visit to a supplier or product installation site may be beneficial to the selection/acquisition process. In these instances, the Principal Financial Group should incur the travel and lodging expenses, or reciprocate to keep the relationship in balance.
Bidding Practices
It is company policy to engage in competitive buying and we have formalized bidding practices which include Request for Information (RFI), Request For Proposal (RFP) and contract negotiations.
Although we don't solicit a set number of bids for every purchase, we usually select the suppliers we believe can meet our needs the best. By keeping in contact with us throughout the year, you will be more likely to be aware of potential opportunities for bidding. We try to develop new sources by requesting bids from suppliers who have not previously quoted. We do not solicit bids for standardized items for which we have established contracts. However, we review these contracts occasionally and you may have opportunities to bid at those times.
All bids will be kept confidential, and once they are received, we consider them to be final and expect suppliers to honor them. We may or may not accept substitutes for certain items. The bid sheet will explain your options. Please let us know if you can't match the exact specifications for an item we are requesting.
If you would like additional information about our purchasing areas or practices, please contact Brenda Dehaai at 515-248-9178.
Accounts Payable
We have an automated purchasing and accounts payable system. Our suppliers are identified in the system by their federal tax identification number (FIN). To qualify as a supplier, provide us with this number and your payment terms so we can build your record on our database. To ensure prompt payment of your invoices, please ensure you reference the correct purchase order number on the invoices and send them to the attention of:
The Principal Financial Group®
Accounts Payable
Supplier Relations
711 High Street
Des Moines, IA 50392-4800
As a rule, Accounts Payable issues payments only from original invoices - not from duplicate copies or monthly statements. Failure to reference the correct purchase order number on the invoice may result in delay of payment.
Our goal is to key invoices into the automated accounts payable system within five working days of receipt in Strategic Sourcing. They will generate the actual payment in accordance with their payment terms.
