AU Vendor Factsheet 1 - Fonterra

AU Vendor Factsheet 1
Fonterra ANZ... We’re Changing
Fonterra is implementing a new
business system (SAP) to streamline
processes and add greater system
smarts across its four Australian and
New Zealand (ANZ) business units:
Fonterra Brands (Tip Top) Ltd, Fonterra
Brands (Australia) Pty Ltd, Fonterra
Australia Pty and Fonterra Brands (New
Zealand) Ltd.
WHEN IS IT HAPPENING
Deployment of the new system and processes across Fonterra’s ANZ
businesses will be staggered over the next two years, commencing with
Fonterra Brands (Tip Top) Ltd.
Overall, these changes are aimed at delivering
greater benefits for both Fonterra and our Vendors.
This includes more efficient management of critical
activities such as ordering, planning and managing
inventory – and processing of invoices!
These changes will only involve our ANZ business
units. For Vendors with an existing relationship with
Fonterra outside ANZ, there will be no change to
your current business practices - continue to work
with these businesses in the same way you do now.
If you supply multiple business units, there will be an interim period where
you will have different processes & paperwork. You will receive
communication about the changes up until the ‘cutover’ time of the first
business unit you supply. We will continue to communicate interim
processes until the last business unit you supply goes live.
COMING TO TERMS
You will see some new terms in this Factsheet and future updates. Use the table below to help you understand the new terms. you
understand the ne
TERM
Batch
B2B
Catalyst Programme
Delivery Docket
DIFOT
EDI
Interface
Material Number
PO
SAP
UOM
Vendor - Direct
Vendor - Indirect
DEFINITION
The batch details the expiry or storage conditions required for specific products.
Business-to-business (B2B) includes the automation of the Procure to Pay process, including automatic purchase order
output, invoice receipt and confirmation to Vendors
The business initiative to implement a new system (SAP) and streamline business processes across its four Australian
and New Zealand (ANZ) business units: Fonterra Brands (Tip Top) Ltd, Fonterra Brands (Australia) Pty Ltd, Fonterra
Australia Pty Ltd and Fonterra Brands (New Zealand) Ltd
The paperwork that accompanies the goods delivered
Dispatch In Full On Time (with a greater emphasis on quality)
Electronic Data Interchange. Refers to the structured transmission of data between organisations by electronic means
An interface defines the data and operations of an application or component that uses it to interact with internal or
external applications/ components
A product/ item/SKU number for ordering purposes. Each material number is identified with a unique number for that
specific material
Purchase Order to buy goods or services
The new business system Fonterra is implementing across its Australian and New Zealand businesses
Unit of Measure that we use for goods, eg. Cartons, Eaches etc
A Vendor supplying raw materials or packaging required for production of finished goods
A Vendor supplying consumable products and service
Confidential to Fonterra Co-operative Group Page 1

CHANGES AT A GLANCE
Core Information -
Master Data
WHAT’S CHANGING
New Vendor Number
New Fonterra Material Numbers
New interactive Vendor form
WHAT THIS MEANS TO YOU, OUR VENDOR
• You will receive a new Vendor number. It’s important to become familiar with this
number as it will be used for queries
Note: For Vendors with existing relations with Fonterra Limited, there will be one
Vendor number. This is your current Fonterra Limited number.
• New Material (Product/Item) numbers and descriptions that you will need to verify
against your records.
• New look Vendor form for updating your details.
Batch
Management
Mixed
Pallets
Quality
Now Batch Managing:
• All Ingredients/ Raw materials
• Specified packaging materials
Mixed Pallets not accepted
Quality Notification process
Critical information is required on the Delivery Docket and packaging of the ingredient.
This includes:
• Expiry date and / or manufacture date *
• Vendor batch details. *
• Mixed Pallets not accepted
• Only a single product per pallet accepted – assisting with scanning.
• New process – for Direct Vendors only
• New interaction form – variation of the existing Vendor Corrective Action (VCA) form.
Purchase
Orders (PO)
Delivery Docket
New requirements • Invoices unique to a single Purchase Order *
• All purchase requests must have a Purchase Order *
• Preferred method of communication
• Compliance – for faster reconciliation, notify Fonterra of discrepancies from the PO
request. This includes, quantity supplied, price, specification, UOM & delivery date.*
New requirements
System generated and centrally
processed
The Delivery Docket must accompany the goods delivered and detail the following
mandatory items.
• Purchase order reference number *
• Fonterra material number (For Ingredients and Packaging only)
• Batch number *
• Storage and transport specifications instructions (ie. Frozen goods).*
• From FBA Go-Live, you will need to send invoices to Fonterra Business Services
(FBS) electronically (excludes Vendors supplying Fonterra Brands, Ingredients).
Invoices
New requirements
How can you start to get ready now
Over the coming months, we will continue to
communicate with you regarding ways you can start to
prepare for this change. We encourage you to:
• Register your purchasing email
– Send your email to VendorCatalyst@fonterra.com
– You can also update contact details.
• Comply with the new ways
– On the Delivery Docket, detail the PO reference
number, Batch number & storage specifications
– Do not accept verbal request from Fonterra
– All Invoices must reference a Fonterra PO number
– Supply one Invoice per Purchase Order.
• Share Vendor Factsheet 1 with your teams.
• Invoices must match the PO (price & quantity), referencing
– a specific Purchase Order
– the delivery docket number
• From August 2012, Invoices will not be paid without a Purchase Order reference
Note: This does not apply to invoices exempt from the purchase order process, such
as Utilities, charities, government departments.
• Purchase Order price must match the Invoice price
• Tax Invoice must be separate to the Delivery Docket.
Coming Soon!
Regular updates providing more detail of the
changes ahead and ways you can start to prepare
for what’s ahead.
Contact Us
If you have any queries regarding
these changes please:
> Contact your Relationship Manager
> Send an email to
VendorCatalyst@fonterra.com
> Visit our Vendor Support website
www.fonterra.com/vendorsupport
Confidential to Fonterra Co-operative Group Page 2