Electric Utility

Verdantis Helps Leading Electric Utility Execute Its Large Master Data Management And ERP Upgrade Initiative

The 4th of July is celebrated as Independence Day across the entire United States. It offers a great opportunity to relax and enjoy much-deserved get-togethers with family and friends. However, holidays are for people but businesses are always running. For one of our clients, it was the day they went live with Phase 2 of their massive ERP and MDM unification efforts, spanning over 3 years.
The current project was part of three large IT projects, whose success rode on overcoming a very critical challenge- data harmonization of over 600,000 item master records. The purpose of the initiative was to unify the company’s present accounting structure, and put in place best-in-class inventory management and MRO procurement practices by leveraging suitable MDM solutions.

Considering the magnitude and potential of the initiative and the number of goals set by the company, it was not surprising to see a few hurdles on the road to success. Of these, the most persistent ones were the creation of the client’s master data, and the lack of common item classification standards.
After careful consideration, the Electric Utility launched an initiative for the standardization, normalization, attribution and rationalization of item master data. The stakeholders decided to bring Verdantis on board as primary master data management solution experts, thanks to “its cutting edge automation solutions, and deep knowledge of material and part attributes,” as quoted by the project manager himself.

Adopting UNSPSC for classifying item records was the first task assigned to Verdantis, as part of the 3-phase approach adopted by the client. The Sr. IT manager was well aware of the benefits presented by the UNSPSC coding; and Verdantis was able to classify 600K items into 1,189 UN Standard Products and Services Codes using automated tools. The project management team was impressed with Verdantis’ expertise to ‘create a few customised codes’ of our own, which didn’t exist in the prevalent code structure. De-duplication was another requirement, with the project lead estimating the potential of de-duplication at a rough total of 5%. With options to identify duplicates on matching manufacturing name/part number basis, as well as on matching attribute basis, Verdantis provided a de-duplicated file of the client’s entire legacy inventory.

The client was impressed with our execution capabilities and showed interest in our data enrichment and on-going data governance solutions, as prospective future engagements. In the words of the project manager, “We liked the idea that they could crawl manufacturer’s websites to find and fill item-attribute information, which might be missing from our legacy descriptions. Being an experienced Data quality management and MDM solutions provider has given Verdantis immense experience into the current market trends and issues being faced by Utility companies, globally.”

Have you been a part of ERP consolidation related MDM projects? Tell us your opinions and ideas, in the comments section below.
Suggested Reads:
Case Study: Verdantis Helps Leading Electric Utility Execute Its Large Master Data Management And ERP Upgrade Initiative
White paper: MRO Master Data Management for Enhanced Maintenance Performance

Blog: Leveraging Item masters in Procurement

Previous Post
Next Post
Prathamesh Prabhu

Prathamesh Prabhu

Prathamesh Prabhu heads the Marketing department at Verdantis Inc. He holds the Master of Management Studies degree.

Leave a Reply

Your email address will not be published. Required fields are marked *