Mead Johnson is implementing a new business model and global SAP system to drive our procurement transformation initiative. Some of the changes we are making in Procurement and Accounts Payable might impact the technology or business processes you have been using when doing business with Mead Johnson. Review the Key Changes section for more information.

Key Changes in Procurement

• New MJN SAP system – New system supports changes in the purchasing processes.
  • All NEW Purchase Orders will be issued from this system
  • The balance of requirements on Purchase Orders not completely delivered or invoiced prior to the old system invoicing deadline will be reissued as a new Purchase Order from the new system.
• Electronic Data Interchange (EDI) system – For select suppliers conducting business SAP-to-SAP, this allows purchasing transactions to be sent and received electronically.
• E-Sourcing tool – a new electronic tool for Bidding and Contract Negotiation.
• Customer Assistance Centre (CAC) – the new dedicated customer service desk supporting suppliers with Procurement questions.
• Contacting MJN Procurement – Suppliers will now work closely with the CAC using the toll-free number or dedicated email address to resolve Procurement related issues, concerns or questions. Suppliers are also encouraged to work with the MJN employee requesting the good or service from suppliers.

Key Changes in Accounts Payable

• New MJN SAP system – New system supports changes in the accounts payable processes.
  • All Invoices for new Purchase Orders will need to be delivered as per instructions provided under the INVOICING REQUIREMENTS section below.
  • Invoices already submitted without blocks will be paid from the old system.
• Electronic Data Interchange (EDI) system – For select suppliers conducting business SAP-to-SAP, this allows inbound Invoices and Credit Memos to be received electronically.
• Changes to Accounts Payable contact location – Reference the INVOICING REQUIREMENTS section below for the:
  • New mailing address to send Paper Invoices
  • New fax number for Faxed Invoices
  • o New email address for Invoices sent via email.
• Customer Assistance Centre – the new dedicated customer service desk supporting suppliers on questions regarding Accounts Payable, Invoices and Payments.
• Changes in contacting support – Suppliers will now work closely with the CAC using the toll-free number or dedicated email address to resolve Vendor, Invoice, and Payment-related questions.
• Changes to Payment Processing:
  • Preferred payment method – The preferred payment method will be electronic funds transfer.
  • Checks will be paid weekly – Payments should be made on a weekly basis.

Checklist: Actions Suppliers Can Do to Support a Successful Transition

The actionable items listed below are critical to ensuring your company is informed and ready to transition towards MJN’s new business model and system on May 3, 2010. We’re counting on your patience and cooperation to achieve these important action items. Otherwise, this will hinder your company’s ability to conduct business with Mead Johnson and be paid in a timely manner.

• If contacted by MJN regarding validation of vendor master related information, respond in a timely and accurate manner.
• EDI Capable Suppliers: If your company has been identified as a candidate for Electronic Data Interchange (EDI), collaborate with the MJN IT team to start the testing and enablement process as required.
• Monitor your Open Purchase Orders: Work with your Mead Johnson contact to monitor open purchase orders and complete goods/services deliveries and invoicing (as required) prior to the old system invoicing deadline. Otherwise, your open purchase order will need to be reissued using the new system creating additional administrative burden on both sides.
• For Suppliers receiving purchase orders via email, create a group email account to receive purchase orders from MJN rather than designated to a specific individual in your company. This will ensure purchase orders are successfully received and business between our companies remains fluid. Please communicate your new email address to your MJN contact.