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:

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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Arthur Raguette

Arthur Raguette

Arthur Raguette is the Executive Vice President at Verdantis. Arthur is very passionate about the application of innovative technologies to solve real-world business problems with a strong emphasis on large enterprise solutions. He has more than a decade of experience of working with Software for Master Data Management and Data Governance for multiple domains and across industries. Arthur’s prior technology passions included high performance B2B middleware and hybridized SaaS applications for HR, Employee and Education related domains.

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