SAP S/4HANA for Product Compliance: doubts with a Supplier compliance scenario

[Paulo_Pinto]

Dear Community, 

Again, I'm in need of some help to clear some doubts that have been put forward by a customer, regarding supplier's compliance.

I'm implementing SAP S/4HANA for Product Compliance, on-prem, version 2023.

Scenario:

Customer buys the same Product to the same Supplier, to be delivered in two different plants located in two countries with different legal requirements:

• Product A01, Supplier S01, for Plant in Portugal.
• Product A01, Supplier S01, for Plant in Morocco.

Question 1: How can I assure Supplier's compliance, considering that SAP doesn't always provide (all) legal requirements for checks for a certain country and/or a region in a country (in the example above, SAP doesn't provide any of Morocco's legal requirements and for Spain, it just provides nation-wide requirements but not regional ones).

Question 2: In the case that I have all legal requirements for checks, is it enough to assess product marketability in each country and perform just one supplier's compliance check, regarding that I have created adequate compliance purposes (like one for each country)?

Thank you in advance.

[Michael_Mulder]

@Paulo_Pinto Thanks for the questions, I will do my best to answer and provide documentation. 

The system allows you to create your own compliance requirement versions and package those together in a compliance purpose (for countries and regions). The system has model compliance purposes to help guide you. Additionally, with the Regulatory Content Service, we are continually adding new content. https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/35751be3d6ee423197492574e016a512/6d1714487b684be9a3b...

For the system checks to proceed, the compliance view for the product also needs to be completed. https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/35751be3d6ee423197492574e016a512/bb3d236c2f234f799a7...

 Hopefully, others will add their expertise to fill-in the gaps for what I missed. I hope this helps a little.

[Paulo_Pinto]

Thank you Michael for taking your time to answer my question.

[christoph_bergemann]

Hello

regarding your questions 

Question 1: How can I assure Supplier's compliance, considering that SAP doesn't always provide (all) legal requirements for checks for a certain country and/or a region in a country (in the example above, SAP doesn't provide any of Morocco's legal requirements and for Spain, it just provides nation-wide requirements but not regional ones).

My answer would be: you need "just" to wait. SAP is on the track to activate more and more requirements (and prepare the needed data structure and integrate it in the process).

If you have the feeling something is missing (now and / or in the future): I propose that you get in touch with SAP. There is a "Co Innovation / Customer Egnagement" running with many companies. If needed: you can raise there your concern / wishes for the future of this software

Question 2: In the case that I have all legal requirements for checks, is it enough to assess product marketability in each country and perform just one supplier's compliance check, regarding that I have created adequate compliance purposes (like one for each country)?

Regarding this question i would like to differenttiate.

The "new" approach of Product Compliance is 100% different to the old one. You need to "assess" only those business cases which are "active" (at least one e.g. purchase order, sales order, delivery etc.) should have happend. You need not to think about "the world" at the beginning

This is the biggest change in "thinking" (and using a SAP software).

In a nutshell: yes you can try to support the "world" but why considering a business case which will not come ?

E.g. may be you never sell to Tansanisa, Kenia etc. (ok not many regulations there.. )

But you need may b to differentiate. If you still use "EHS Classic" i hope that you still have acquired lot of data. So why should you not "migrate" the data (even if you to not may be not need it at the beginning)

Wish you the best

C.B.

[Paulo_Pinto]

Thank you for your comments, Christoph, as always, they are insightful and helpful!

[christoph_bergemann]

Hello Paulo

May be i am misinterpreting your topic. Can you exlain "better"

Topic 1 We have a "supplier". Now let us assume the supplied is located in "germany"

Topic 2. The Supplier delivers the same material to two different plants in two different countries

This would be my understanding what SAP will try to deliver step by step.

Topic one: per "Country" you have a different legal frame work

So for "portugal" the supplier must "fulfill" REACH (or you must do this); and must deliver the SDS

For "Morocco": there is no "REACH" and officiall according to my knowledge no "SDS" obligation

So per "plant" / Country) Product Compliance (ling term) will "show" you all "legal requirements" and you can do "assessments" (fullfilled, not fullfilled etc)

Both for the combination "supplier" / "plant" (country) you need to maintained different data

What you do with the material in the plant.. this is another story

So this "material / supplier" correlation is more a "material/supplier/ Plant (Country) correlation

C.B.

[SebastianGriessmeyer]

Hi @Paulo_Pinto, 

I hope your implementation project went/ is running well. 

I want to add some information to the answers from @Michael_Mulder and @christoph_bergemann . 

Regarding Question 1: 
As Michael already mentioned, you can create own Compliance Requirements (=Regulations) in the system. Additionally, you should be aware of the difference in between of Marketability Assessments (Assessments of  Compliance Requirements = Regulations) and the Market Assessments (Assessments of the the markets, menas countries/ regions). 
Marketability Assessments and Market Assessments can be maintained independently (of each other)! 
For more details please have a look at our SAP Help portal: https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/35751be3d6ee423197492574e016a512/ad3c1ab3d1d449de8a4... 

Regarding Question 2: 
My assumption is, that you buy the same product from a supplier, which once has to be delivered to Marocco and once to Portugal. 
Therefore, I would assign the respective compliance requirements (via compliance purposes) for both countries to this raw material (= purchased product), as it is important that the product itself is compliant with the regulations in the target country (no matter from which supplier you receive it). 
(Important hint: This case would be completely different in the system, if you are acting in the role of the supplier who is selling his products to his customers in Marocco/Portugal). 

Hope I could support you, and feel free to give us feedback. 

Best regards
Sebastian

[Paulo_Pinto]

Thank you for your answers, Sebastian. As for my implementation, I'll give feedback in a few days.

[christoph_bergemann]

Hello

currently SAP is delivering some options to be used in the "purchase process".

The options will be extended step by step by SAP.

We need to differentiate here the "Content" and what is delivered by SAP.

For purchase part: e.g.

https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/35751be3d6ee423197492574e016a512/3ed513757551420cbb0...

https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/35751be3d6ee423197492574e016a512/7bcb098b6a474beba53...

https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/35751be3d6ee423197492574e016a512/b46ec93396fb49e4bfe...

etc. is potentially relevant

So we have "Compliance Requirements" and "Compliance Pattern"

SAP will go on (assumption) to extend the solution; if a check can be linked to "Content" (as for "Substance Lists") we can assume to get "content" as well (in the future)

For your case: not check the specific situation: "Portugal" is part of "REACH EU"; so later SVT will run her; MOrocco: i am not aware of regulations.. but i do not the details (e.g "Drug", Chemical Weapon" and many other stuff)

We can assume that SAP will try the very best to deliver a product able to support > 90% of the topic. But we know that some topics are not 100% clear (as the focus is mainly on "chemistry" and e.g. not on "fungicide, pesticides" etc.

So let us wait what SAP will deliver step by step (check SAP roadmap; Cloud solution will get faster updates than on premise)

C.B.