Clean material master data is the foundation for every process integrated with SAP including procurement processes, asset management, warehouse management and sales and distribution functions. A comprehensive master data management strategy is a key enabler to realizing significant benefits and return on any investment in SAP. Benefits of an optimized MDM process include:
- Greater utilization and trust of ERP system
- Increased contract compliance
- Inventory reduction
- Increased visibility of spend
Challenges
Master Data contains descriptions of all vendors, customers, pricing and contract information, manufacturing data and for all materials that an enterprise procures, produces, and keeps in stock. The information stored there is vital in ensuring that all processes across an organization’s integrated supply chain work seamlessly and with minimal manual intervention.
There are numerous business initiatives underway in an organization at any given time that are focused on cost reductions and operational efficiencies. Without clean data, it is nearly impossible to utilize the standard tools within SAP that help organizations realize the maximum potential of these initiatives. Having and maintaining clean master data is essential for the success of any process improvement initiative and for maintaining a competitive advantage.
Despite its importance, many organizations fall into a “Set it and Forget” pattern with their SAP master data. Maintenance is time-consuming and users are often tasked with sustaining data integrity for an overwhelming volume of data (especially for MRO). Fortunately, armed with the right tools and an effective MDM strategy, any organization tackle even the most daunting of data clean up initiatives.
Solution
It is important to build an understanding of the underlying causes of poor data integrity. A unified MDM strategy can then be developed to address and eliminate these issues moving forward. Users should then be trained on the tools available to them which can help manage data issues on an exception basis. Additionally, a data clean up initiative should be employed to make mass changes within the system to bring master data elements current. Benefits of an optimized MDM process include:
- Greater utilization and trust of ERP system
- Maximize return on process improvement initiatives
- Increased operational and performance visibility
- Increased visibility of spend
- Superior and accurate financial reporting
- Increased return on the investment in SAP
