Changes to supplier master records for higher risk identification
This is to inform you that we will be adding an additional indicator in our supplier master data files to enable identification of higher risk suppliers. We are making this change to provide additional assurances that MJN interactions with certain suppliers are reviewed as appropriate.
Note, there is no change to either the shopping cart or invoice processing SAP workflow steps. This change will be largely transparent as a minimal number of additional shopping carts and invoices will now flow through the high risk process and require review by the technical review teams for shopping carts and market finance for invoices. Net, the change will be largely unnoticeable but we do want to make you aware of it.
What does this mean to you?
Shopping Carts and invoices that are processed with suppliers flagged as higher risk will flow through the current higher risk transaction workflows.
Which suppliers will be affected?
Suppliers may be identified as higher risk for reasons such as: the type of services they provide, their ownership structure, the business environment where they operate, and so on. Identification of suppliers as higher risk may occur in two ways: 1) by due diligence performed when new suppliers are requested/created, and 2) as our existing suppliers are reviewed as part of our ongoing due diligence process.
Which invoices and Shopping Carts are affected?
All Shopping Carts and invoices require proper supporting documentation, so there is no change in supporting documentation requirements. The focus of this change is to ensure that suppliers flagged as higher risk follow the higher risk workflow process implemented in June 2015, for both shopping carts and invoices.
Please note, certain alteration carts (such as changing a PO owner and changing G/L account assignment with no increase in PO value) will not be allowed and an error message will display. The work instruction to address these carts is on Share Point and also referenced below.
What are the workflow impacts?
A minimal number of additional transactions will now follow the higher risk workflow which in the past may have been following the non-high risk workflow. This is a requirement identified after implementation of workflow changes due to the BCC project that went live in June 2015
Will this impact processing time?
Because end-to-end processing time will likely increase for transactions with higher risk suppliers, you should allow for additional lead time for reviews and approvals. You can avoid or minimize these potential delays by ensuring that you provide required documents for all Shopping Carts and invoices.
What else do you need to know?
Training materials related to the shopping cart and invoice approval process are available here:
Enhanced Controls on Shopping Carts Alteration Shopping Cart Instructions
Enhanced Controls for Invoice Approval
You may also refer to the B-RITE portal page or the Indirect Procurement Requirement Checklist on the e-Buy portal page to review documentation requirements.