How to Monetize Product and Material Domain MDM Initiatives
(Identify Duplicates, Standardize Data, Create Actionable Value)
This is Part 2 of a 2 part blog post. Read Part 1 on Product and Material Domain Monetization of MDM initiatives – The difference.
So for product and material, the attributes matter and our customers have developed, adopted or leveraged standard attribute / character maps to generate atomic/ granular attribute/value pairs from their source data in order to automatically compare items for exact match or form fit and function.
These attribute sheets span thousands of categories and have the critical and non-critical characteristics and attributes that determine uniqueness to form / fit / function and cover items from Laptops to UnderWater Optics, from Bituminous Coal to Drill Bits and from T-Shirts to Tee-Fittings.
Duplicate Identification, whether exact match or for form/fit/function are often seen as the main justification for Material / Product / Item data improvement.
The former – exact match identification highlights both potential excess inventory as well as price discrepancies.
The latter – form/fit/function allows comparison of multiple manufacturers or sources of supply. Price variance against volume purchased or forecasted volume drives value realizations.
Additional hard-currency savings resulting from harmonizing Item / Product/ Material masters are the increased adoption of automated PO generation for Stock items, increased use of Procurement catalogues, and concentrating on preferred contracted vendors of these items at pre-negotiated price points.
The three approaches above certainly impact the Procurement as well as CFO stakeholders, the latter may be of the greater interest to the CIOs who are looking to leverage best adoption and value realization from their ERP investments.
Additional value points for the CIO stakeholders include enabling more accurate search, increased use of standards and reduction of duplicate entries – all increasing user adoption of the master data, and more importantly the transactional systems that leverage it.
COO Stakeholders gain from reduced stock outages, increased uptime, and the productivity gains, and reduced wasted labor costs associated with longer repair times, or material outages that are eliminated or significantly reduced through accurate visibility into operations material and parts data.
Do you have any experiences to share on value unearthed by harmoninzing Item/ Material/ Product Masters ? Do you think CIO or the COO could be deriving even more value than listed above? Do let us know…