I was fortunate to be introduced to MRO Master Data Management in 1999. Like a number of opportunities in my career, it was by happenstance. An opportunity was presented to our team to propose on a pilot program for one of the big three automakers. They wanted to see if we could help them cleanup and manage their MRO inventory for four plants. We collaborated with the customer on their goals and went to work. We came up with a creative approach that was successful and almost immediately yielded significant savings.
In short, accurate and reliable data should be the goal of any MDM solution. If you’re reading this, it’s very likely that one of two scenarios has occurred: (1) you’ve already identified that managing your company’s MRO supply chain is in need of a greater control, or (2) you’ve realized, consciously or subconsciously, that inconsistent data in your MRO supply chain is fighting for your attention, but it hasn’t yet manifested itself as an urgency, so you figure you can wait until it does and hope to mitigate any financial implications.
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Master data management (MDM) has become a buzzword in recent years. In fact, many companies have even appointed a chief data officer in the past decade—as data management is now viewed as too important and vast to be classified under a CIO or CTO. However, even with executives dedicated to technology, information and analytics, organizations still struggle to determine who is responsible for data governance and the various components that fall within the realm of enterprise data. Regardless of the titles of executives in your company, the whole C-Suite should understand the value of MDM and the significant impact it can have on the company’s bottom line.
Depending on your industry, procured spending often accounts for more than 50% of sales revenue. Consequently, executives often see procurement as an area of business that must constantly minimize costs to ultimately increase bottle line profitability. In a 2016 survey of chief procurement officers (CPOs), 74% of respondents listed cost reduction as their top priority. With such an emphasis placed on procurement spending, procurement leaders must consider tools, resources and insights designed specifically to address a CPO’s challenges. Available technology solutions exist to help visualize spending, organize supplier and spare part information, and provide business intelligence for better decision making. While these tools may make the process easier, they often fall short of fully maximizing savings for you. The solution? Master data management (MDM). MDM is the comprehensive process that cleanses, verifies and enriches your data to create consistent, reliable data. Without an effective MDM solution, data is likely inaccurate, missing or obsolete. Read on to learn how MDM is not just a fancy term, but a valuable resource that alleviates issues for 5 of the top challenges procurement officers face.