While such roll out projects focus on aligning business requirements with ERP/EAM functionalities and configurations, many teams overlook one of the most business-critical factors – Strategic data quality.

This webinar will showcase how you can drive Real Dollar benefits from your ERP projects by planning for Master data management.

View this webinar, to learn :

• Tactical v/s Strategic approaches to data quality in ERP roll-outs
• Case studies of large ERP roll outs – winners and losers
• Pitfalls to avoid in ERP/ EAM material data quality projects

Click here to view this Webinar!

The post On Demand Webinar:Strategically manage data quality in an ERP rollout appeared first on Verdantis Blog.

The webinar was co-presented by George Pasti (Regional Sales Manager, Verdantis) and Aditya Kasturay (Pre-Sales Support Manager, Verdantis). It provided an executive overview of Verdantis’ best-in-class tools—Harmonize and Integrity with live demonstrations.

It focused on:

• The Verdantis Value Proposition and Competitive Advantage for Material Master Data Quality and On-going Governance
• Creating the Business Case for Material Master Data Management: Real value against real resource and investment costs
• Demonstration of our Best-in-Class tools—Harmonize and Integrity: Seeing the difference!

                                                   Screenshot from the webinar

If you were not able to make it to the event, here is the link to access the presentation.

Connect with us at info@verdantis.com and get your Material MDM questions answered.

The post A Quick Run-through of Our Latest Webinar – ‘Unlocking Master Data Success: The Verdantis Way’ appeared first on Verdantis Blog.

Improved materials-related personnel productivity:

Total number of man hours =
Total number of engineers
* 1600

Total number of hours wasted =
Time wasted by personnel procuring / sourcing / finding spare equipment parts
* Total number of man hours

Potential materials-related productivity savings =
Total number of hours wasted
* Average labor rate, including benefits for an engineer

Connect with us at info@verdantis.com and get your Material MDM questions answered.

The post Benefits of Material Master Data Management-Part 5 appeared first on Verdantis Blog.

Reduced stock-outs related downtime:

Total cost of materials related downtime =
No. of stock-outs causing downtime
* Average amount of downtime per outage
* Cost of downtime

Savings in materials-related equipment downtime =
Total cost of materials related downtime
* Percentage of downtime reductions obtainable

Our next post will present a calculator to estimate the improved materials-related personnel productivity. Stay tuned!

The post Benefits of Material Master Data Management-Part 4 appeared first on Verdantis Blog.

Inventory holding cost reduction:

Estimated one-time inventory reduction =
Estimated total inventory valuation
* Estimated inventory reduction

Estimated additional savings (inventory overhead@%) =
Estimated one-time inventory reduction
* Estimated additional savings (inventory overhead)

Our next post will present a calculator to estimate the reduced stock-outs related downtime. Stay tuned!

The post Benefits of Material Master Data Management-Part 3 appeared first on Verdantis Blog.

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!

The post Benefits of Material Master Data Management-Part 2 appeared first on Verdantis Blog.

THE BUSINESS CASE FOR MATERIAL MASTER DATA MANAGEMENT

Research from leading analyst firms have found that reduced material costs and optimized inventory, enabled by harmonized and subsequently maintained material master data, can contribute more than 1/3^rd of the hard dollar savings from an ERP consolidation initiative.

Stay tuned for our next post wherein will share our Business Benefits Calculator to help you with your ROI calculations.  If you don’t want to (or can’t) wait for it, click here and contact us.

The post Benefits of Material Master Data Management appeared first on Verdantis Blog.

Sourcing

Sourcing projects and the make-versus-buy decision process in general require a view of what exists already in the approved parts lists and approved vendor lists. Bad material master data can result in supplier proliferation, part proliferation, and a failure to leverage existing contracts.

Effective Spend Management

Many material items are infrequently replaced items purchased on a decentralized basis from a broad range of suppliers, resulting in inefficient purchasing processes such as increased order fulfillment times, higher transaction processing costs, and time-consuming administrative support. In many purchasing departments, there is still an enormous potential for savings, e.g., in the area of bundling of demand across locations, supplier management, and shared purchasing contracts. However, companies waste millions every year because of different material and supplier data in distributed IT systems, leading to lack of spend visibility and poor inventory control. Inadequate material descriptions are a source of frustration for those employees who cannot find the right parts and supplies to allow them to do business. This situation leads to maverick purchasing – when an organization has negotiated strategic contracts with suppliers but employees buy outside these contracts, typically at higher prices. Such off-contract spending reduces an organization’s ability to efficiently monitor its expenditures and raises its costs. Professional purchasing as well as professional supply chain management are thus closely dependent on professional material master data management in order to fully leverage its potential.

We’ve spent too much time on the problem – let’s turn optimistically towards solutions.

For more information, contact us at info@verdantis.com.

The post The need for effective Material Master Data Management – Part 3 appeared first on Verdantis Blog.

Inventory Visibility

Warehouse management systems, ERP systems, and third-party logistics service providers manage aspects of parts and finished goods inventories. This fragmented system landscape clouds inventory visibility and leads to overpurchasing, stock outs, inventory write-offs, and disruptions of manufacturing operations. Bad material data is the key culprit behind issues such as cash locked up in excess inventory, lack of inventory visibility within and across plants, low employee productivity, false stock outs and increased plant downtime. Increased inventory cost is the single largest bottom-line effect of unstructured and inaccurate material master data.

Decreased Plant and Equipment Availability

Poorly described material items, especially MRO items, often lead to incorrect and untimely part orders. Inefficient buying of critical supplies increases the cost of maintaining equipment and frequently results in decreased plant and equipment availability.

Decreased Employee Productivity

Duplicate and obsolete inventory leads to excess material records. This compounds the problem for most of the materials management software which are buoyed by a lack of effective search functionality. According to an Aberdeen Group survey of leading manufacturing firms, maintenance workers spend as much as 60% of their time identifying and searching for MRO parts, indicating that most organizations could benefit from improvements in their loss of wrench time. In addition, sometimes employees searching for the right part often lack the product expertise or time to manage the process effectively. The additional time, resources, and expertise needed to find the necessary parts to run an organization’s plant and equipment leads directly to decreased worker productivity.

Part Reuse in Design

An engineer’s design decisions can have lasting financial impacts on product margin as well as on the organization. Part reuse is dependent on the engineer’s ability to find the right part based on attributes. When existing parts are incompletely or wrongly classified, and attributes are missing, frustrated engineers find it easier to create a new part than to perform an extended manual search. This undermines sourcing strategies and merger-and-acquisition synergies, and further bloats inventories.

Stay tuned for our next post on procurement issues! For more information, contact us at info@verdantis.com.

The post The need for effective Material Master Data Management – Part 2 appeared first on Verdantis Blog.

Two significant business events that underscore the importance of high quality material master data are Merger / Acquisition and ERP / EAM Consolidations.

Merger and Acquisition Activities

The synergies driving M&A activities often are dependent on consolidating operations and inventory as well as sharing and integrating designs and leveraging use of common parts. Realizing these synergies depends on the ability to merge item master data files and to accurately report on the status of these initiatives. Failure to gain a common view of the item master data of both companies not only diminishes the synergies and drags out the integration process, but also threatens the success of the merger or acquisition itself — a business event typically far more expensive than the cost of the required data maintenance.

ERP System Consolidation

Increasingly more organizations are consolidating their ERP instances, targeting savings and efficiencies. Business drivers for these consolidations include SOX compliance pressures, the end of SAP ® R/3 ® version support, system harmonization across business units or geographies, and architectural upgrades that allow companies to leverage service-oriented architectures. However, attempting consolidation before the master data is rationalized will lead to a contaminated single instance. Cleansing the data once it lands in the new system is enormously expensive and time consuming.

There are less significant, but just as important,  ongoing efforts that benefit from Material Data Quality Improvement and we’ll address then next time.

For more information, contact us at info@verdantis.com.

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