In 2009, Mead Johnson Nutrition launched a transformation initiative to continue our growth as a global leader in pediatric nutrition. Mead Johnson's approach to effective supply chain procurement practices builds on our past efforts and investments and targets three focus areas:

• Business transformation, to help us change existing procurement practices using best-practice business processes and leading SAP technology
• Core business application solutions, to help us improve business efficiency
• Enterprise integration, to help us reduce costs and increase productivity

As a globally integrated enterprise, Mead Johnson is committed to strengthening the processes, systems and technologies that support its success. This means transforming such areas as Information Technology, Finance, and Procurement.

A major part of the transformation effort involves our partnership with IBM for Procurement and Accounts Payable services. As a procurement services provider to Mead Johnson, IBM will be responsible for the following areas:

• Strategic sourcing (supplier selection and negotiation)
• Tactical buying (including administering requests for quotes and bidding)
• Purchase order processing
• Catalog content management
• Supplier management for procurement of certain indirect goods and services categories

IBM will also support Mead Johnson’s Accounts Payable invoice processing for both Direct and Indirect goods and services.

Another significant aspect of the transformation is the creation of a dedicated Customer Assistance Center available to all Mead Johnson suppliers to address procurement and accounts payable questions or concerns.

Timeline of Key Events

Apr 2011

• Closing existing Purchase Orders (POs) in old MJN systems to reissue in the new MJN SAP system.
• In order to minimize payment delays, suppliers need to submit ALL pending invoices using the current process by April 19, 2011.

May 2011

• Go-Live: MJN will transition Latin America business activities to its new model and system on May 3rd, 2011.

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.
  • Purchase Orders not completely delivered or invoiced prior to the old system invoicing deadline will be reissued from the new system.
• E-Sourcing tool – a new electronic tool for Bidding and Contract Negotiation.
• Customer Assistance Center (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
• Changes to Accounts Payable contact location – Reference the INVOICING REQUIREMENTS section below for the new mailing address to send Paper Invoices.
• Customer Assistance Center – 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 MJNs 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.
• 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 (i.e. “purchase orders@vendor.com”)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.

For suppliers conducting business with Mead Johnson in Latin America, after May 3, 2011, there will be a new way to receive purchase orders (via email) and new postal address to submit invoices.

MJN Suppliers:

• Will receive new and modified purchase orders in PDF format via email.
• Should submit invoices via mail (see postal address below)

Invoice Content Requirements

Prior to submitting an invoice, supplier must have the following clearly labeled and easily located on their invoice(s):

• Invoice Number. This number must appear on each page of a multi-page invoice and should not be a number previously assigned to an invoice within the last two years.
• NOTE: Your invoice number must not include special characters as they cannot be recognized by our new SAP system.
• Invoice Date in DD/MM/YYYY format.
• Vendor Name.
• Vendor Address.
• Vendor Email (optional).
• Vendor contact name and phone.
• Current Vendor Remit to Address.
• Ship to Address or address where services were rendered.
• Company Purchase Order number printed on the invoice.
• Company Purchase Order Line number printed on the invoice.
• Currency marked.
• List Tax amount(s) separately; a Tax total is required if there are multiple tax amounts.
• List Miscellaneous charge(s) separately; a miscellaneous charge total is required if there are multiple miscellaneous charges.
• List Freight amount(s) separately; a freight total is required if there are multiple freight charges.
• Invoice total including all line items, taxes, freight and miscellaneous charges (required).
• If requested by your company, include a Release number or Delivery Note number

When submitting invoices, Mead Johnson urges suppliers to strictly use the following procedure:
1. Send a confirmation of goods or services rendered, not the invoice, to the originator of the request. Mark the confirmation document as "Not an Invoice."
2. The original invoice document must not have any handwriting, check marks, highlighting, or changes.
3. Reference one purchase order per invoice; do not combine multiple purchase orders on an invoice.
4. Send invoices and credit memos – not statements – using the corresponding postal address listed below based on the Mead Johnson location you do business with.

Invoice Delivery Details

Send invoices and credit memos – not statements – via email, fax or P.O. Box mailing address, using the corresponding details listed below based on your Country:

Please note that any incorrect or incomplete invoices can cause Accounts Payable to deviate from normal processing and may delay your invoice from being processed in a timely manner.

Furthermore, the locations listed above are only to be used for submitting invoices. Emails or queries sent to these locations will not be received by the Accounts Payable team. After May 3, 2011, please direct all account payable questions either to accounts.payable.la@mjn.com or call the Customer Assistance Center on the country Toll Free number listed below to speak to an Accounts Payable representative.

Starting May 3, 2011, suppliers based in Europe can contact Mead Johnson's dedicated Customer Assistance Centre. Available at no cost to our suppliers, the Centre is the place to go for answers to any procurement or accounts payable-related questions, concerns or issues.

The CAC is one of the initiatives we are implementing to better support our suppliers. You can contact the CAC by phone (from 9:00am - 6:00pm EST) or email:

For Procurement (Purchase Order related issues)

By phone, call the dedicated country toll free number listed below and select Option 2 (MJN Supplier) then choose Option 2 or by email at mjnscmla@mjn.com Supported Language: Spanish and English

For Accounts Payable (status of an invoice or payment)

By phone, call the dedicated country toll free number listed below and select Option 2 (MJN Supplier) then choose Option 1 or by email at accounts.payable.la@mjn.com Supported Languages: Dutch, English, French, Portuguese and Spanish

Country Toll-Free Numbers