Benefits of Material Master Data Management-Part 2
Material Master Data Quality Improvement can reduce the costs of an ERP or EAM implementation. They can also improve your cash flow, reduce operational outages, and generally support improvement in business operations. In this post, we provide a calculator to help you plug in your numbers and estimate the value of improving your Material Master data by avoiding inventory cost.
Inventory cost avoidance:
Savings (cost avoidance) =
Total value of MRO spares purchased per year
* Percentage of time spares that are already in store when others are purchased
Additional savings (inventory overhead@%) =
Savings (cost avoidance)
* Additional savings (stores overhead)
Our next post will present a calculator to estimate inventory holding cost reduction. Stay tuned!
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