Let’s take a look at classic processes such as material procurement from the data perspective:
Article descriptions, prices, packaging units, minimum order quantities, suppliers, contact persons, payment terms and delivery times are essential information for triggering an order with the supplier. It quickly becomes clear that 90-95% of the information in such processes is actually based on master data.
The logical conclusion: complete and correct master data is the elementary basis for functioning business processes!
Who actually needs this data? More transparency is needed!
A common problem in companies is that the people who maintain the data are not the ones who derive the benefit from it. Since this benefit is often not immediately apparent, master data management is sometimes not carried out with the necessary care.
The remedy for this is to bring more transparency into the organization and to inform employees about subsequent or related processes. This can create more awareness across departments about the importance and necessity of data and how supply chains work.
Employees should always ask themselves when managing data: who is using this data? What does incorrect or missing data mean for other departments?
Data yes – but not just any data!
It should now be clear why data is so desperately needed in companies. However, it is just as important that the data is correct and complete. After all, the entire supply chain is built on it.
Well, companies have collected a large amount of data over the years. That should be enough, right? No, because at least as important as the initial recording of master data for an item, a supplier, a customer or similar, is the continuous updating of existing data records.
What is the result of outdated data?
Incorrect master data provides the wrong input for business processes. The consequences of this are manifold: for example, the wrong items are ordered, material is ordered at outdated prices, products are calculated with outdated prices, and so on. Inefficiencies and error costs along the entire value chain are the result. Fixing such problems after the fact costs a lot of time and money. It is much easier if the data basis is right from the start.
Conclusion: A master data basis that can be trusted is the be-all and end-all for every company. The entire supply chain is built on this, from the raw material supplier to the end consumer!
Sources:
Cf. IPL Magazin, Wie wichtig sind Stammdaten?, accessed 06.09.2022
URL: https://ipl-mag.de/ipl-magazin-rubriken/scm-praxis/445-wie-wichtig-sind-stammdaten
Cf. ecosio, Was sind eigentlich „Stammdaten“ und warum brauchen wir die?, accessed 06.09.2022URL: https://ecosio.com/de/blog/warum-korrekte-stammdaten-wichtig-sind/
Cf. Paul Planung, Stammdaten-Management: Was es ist, warum es wichtig ist und wie man damit anfängt, accessed 6.09.2022
URL: https://www.linkedin.com/pulse/stammdaten-management-es-ist-warum-wichtig-und-wie-man-cubeware-/?originalSubdomain=de