Ensuring Chemical Supplier Compliance in the Value Chain

Objective

After completing this lesson, you will be able to ensure Chemical Supplier Compliance.

Chemical Supplier Compliance Process

Supplier Compliance in the Value Chain: Overview

Chemical supplier compliance in the value chain ensures comprehensive regulatory adherence and risk mitigation across all supplier relationships within the chemical industry.

The framework integrates automated compliance checks into purchasing processes, preventing non-compliant suppliers from entering the supply chain while maintaining continuous monitoring of supplier assessment status .

SAP's Chemical Supplier Compliance process supports checks carried out in purchasing documents, where the system verifies supplier assessment status for each compliance-relevant product and blocks transactions when suppliers aren't approved, creating compliance requests for product steward specialists to review and approve supplier assessments

Watch the following video to see how users and which roles work together to complete that process.

Applicable Process Steps

To sum up the steps you saw in that video, here are the general process steps listed:

Master Data Specialist: Defines compliance data and assigns supplier for raw materials
Purchaser: Creates Purchase Order and checks supplier status
Product Steward Specialist: Checks the compliance request
Master Data Specialist: Checks approved compliance information for supplier
Purchaser: Processes Purchase Order

Benefits

The benefits of the Chemical Compliance in the value chain are:

Mitigate compliance risks with up-to-date information integrated into the value chain
Integrate compliance marketability checks in the procurement processes
Inform product steward specialists about new suppliers
Go through approval process to validate restrictions for purchasing

Note

This process flow is covered in Scope Item: 5OJ- Supplier Compliance in the Value Chain.

How to ensure Supplier Compliance

Introduction: Supplier Compliance in the Value Chain

Supplier compliance in SAP encompasses the systematic process of ensuring suppliers adhere to regulatory requirements, contractual obligations, and organizational standards throughout the procurement lifecycle. This includes chemical compliance, product marketability assessments, dangerous goods management, and supply chain due diligence to mitigate risks and maintain operational integrity

For example, as in this scenario, when you create a purchase order, you want to ensure that the supplier of the product has also been defined as compliance relevant in the system. If the supplier of all items is compliant, the document can be processed. If the supplier is not approved for an item, this item and consequently the business transaction, is blocked.

Task 1: Assign a Supplier to a compliance view

Master Data Specialist for Product Compliance, Jasmine checks if the compliance view for the raw material exists. In the detail view she also assigns a supplier and requests the assessment of the supplier compliance.

Task 2: Create a Purchase Order

Claire works in the purchasing area. She is responsible for the purchase orders.

In this scenario Claire creates a purchase order for a compliance relevant raw material. For the entered supplier, the compliance assessment is still in progress.

The system verifies the supplier compliance status and blocks the purchase order. Also a compliance request is generated.

Task 3: Approve supplier

Otto, Product Stewardship Specialist for Product Compliance, opens the compliance request and checks the issue. Finally Otto approves the data.

At the end, Purchaser Claire checks the status of the purchasing order. The document is no longer blocked.

Summary

After completing this lesson, you are able to:

name the benefits of using a Chemical Supplier Compliance
understand the Chemical Supplier Compliance process
create a Compliance view for a Raw Material and add a Supplier
use the data inside a Purchasing process

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