Electronic catalogues and master data are the cornerstone of any enterprise
At some point in time we all have had to struggle with inconsistent, incomplete and non-comparable item descriptions. This may have been a personal on-line shopping experience or, perhaps, one more critical – such as the identification and procurement of spare parts to support the production assets for your company. The impact of “dirty” data to a company’s operations is significant. For example, industry experience has shown that 10-15% of the items procured are duplicated or substitutable items within the operations – meaning that if more was known about the materials procured, the quantity and expense of a significant portion of procurement activities can be reduced.
Poor master and catalogue data descriptions are a root cause of process malfunctions and asset mismanagement. Without a consistent and standards-based data management process, your purchasing organization can't find the needed information to accurately order. The result? "Guesswork" purchase orders that lead to:
- Obsolete and duplicate materials
- Longer order fulfillment cycles
- Higher inventory, equipment maintenance and procurement costs
- Lower plant and equipment availability
- Inability to perform better spend analysis for on or off contract items
- Inability to increase procurement advantages and effectiveness through volume purchasing and increased leverage on vendors
- Inability and failure of applications to transmit data seamlessly application-to-application requiring continued manual intervention that only adds to the cost of doing business
- High volumes of materials being returned to the vendor or the warehouse because the item or material is incorrect or the incorrect quantity has been delivered
- High incidence of OEM purchases rather than through general suppliers
In short, how a company creates, manages, uses and stores master data and catalogue information directly affects the Companies bottom line profits, and is critical to improving productivity, reducing costs and support compliance.
During most ERP implementations and upgrades system integrators exclude MRO Master Data and Catalogue cleansing from their scope and responsibility. As a result, most Companies face one of the greatest risk factors of the project. Without good, clean data, ERP implementations / upgrades will fail.
Increase Contract Compliance by 20%
- Determine and procure the required part or product with certainty
- Reduce maverick and free text purchases
- Track & monitor supplier performance against contract and delivery compliance of orders placed
- Increase visibility across the enterprise with regards to search, spend and rationalization opportunities
Increase in Service Levels by 20%
- Have the correct part or product in stock and delivered at the needed time
- Curb false stock-outs (when the ERP indicates nil stock on hand, when stock is in inventory)
- Reduce expedited orders and associated costs (Normally arising from poor visibility and stock outs)
- Reduce the risk of plant down time
- Optimize use of ERP "Search, Inventory, Financial” modules
Decrease Inventory Costs by up to 15% ~ If you know what you are buying then you can:
- Buy only the correct materials
- Buy only what will be consumed
- Reduce the number of materials on-hand
- Decrease carrying costs
- Reduce invoicing issues
Standardise data to meet ERP and strategic sourcing initiatives
- Eliminate orders for duplicate or obsolete materials
- Shorten order fulfillment times
- Avoid errors that cause repeat shipments
- Prevent situations that cause off-contract spending
- Reduce the cost of data creation and management
Quadrem offices in 22 countries and 6 continents can guarantee global deployment in English, Spanish, Portuguese, French, Italian and German.