ENHANCING BUSINESS WEBINAR EFFICIENCIES WITH MMDM€¦ · Data Management with a primary focus in materials. Related experience in Data Warehousing, International Supply Network,

PRESENTATION

ENHANCING BUSINESS

EFFICIENCIES WITH MMDMWEBINAR– July 22nd ’19

www.verdantis.com | [email protected]

http://www.verdantis.com/

mailto:[email protected]

The name Verdantis comes from the Latin word for truth – veritas, as well as

the word verdant – meaning abundant and sustainable.

Verdantis, Inc. has been delivering Automated Master Data Quality

Improvement and Governance Solutions for more than a decade to Global

1000 Customers across industries, domains and the globe.

© Verdantis, Inc. 2016

INTRODUCTION




George Pasti

[email protected]

+1 508 878 2760 (m)

+1 978 499 7600 (o)

Regional Sales Manager

Verdantis, Inc.

George Pasti has over 15 years of experience in Master

Data Management with a primary focus in materials.

Related experience in Data Warehousing, International

Supply Network, Supply Chain, Supplier Management,

Content Management, Engineering and Manufacturing

software applications. He is client value driven and has

advised on many successful projects.

ABOUT THE PRESENTER





WEBINAR AGENDA


Material Master Data Management – An Introduction

Material Master Data Cleansing

Material Master Data Governance

Webinar Take-Aways

Challenges and pitfalls of inefficient data management

Business necessities behind MDM implementation

Business benefits of MDM implementation

Key functionalities of Verdantis MMDM

Case studies of ERP roll outs with MDM in place



What is MDM?

• Central repository of information on materials

• Material’s Descriptions that an enterprise procures,

produces, and keeps in stock

• Contains a variety of data elements like

• Part number

• Description

• Technical specifications

• Stocking codes

• Important for the core functionality for any ERP system

MATERIAL MASTER DATA




What is Service Master?

• Central repository of information on “Services” which are

• Procured

• Contracted

• Rented

• Leased

• Contains a variety of data elements like

• Classification

• Description

• Vendor/Supplier information

• Location

• Frequency

• Conditions

• Important for the core functionality for any ERP system

SERVICES MASTER DATA




Material Master Data Cleansing & Material Master Data

Governance

Get It

Clean

Keep

It

Clean

Data Cleansing

• Robust data governance

• Restricts corrupt data from entering

• Fuzzy logic capability

• Enables searching for the desired materials

• Configurable workflows

• Keep material master clean and ensure compliance

• Clean and de-duplicated data

• Increases productivity and optimizes costs

• Automated approach

• Helps deliver an increase in throughput

• Quick time to value

• Generates greater ROI through Data

Quality initiatives

MATERIAL MASTER DATA MANAGEMENT

Data Governance




POLL QUESTIONS


a) ETL merge & match

b) Global master data solution

c) Data is cleansed manually

d) Automated Solution for managing your Material Master

e) Other

How do you manage your data currently?

POLLQUESTION #1



Pitfalls of not undertaking/implementing master data management

- Reduced ROI on ERP Endeavors

- Existing and ever-growing duplicate inventory

- Repeated effort spent in sourcing new materials

- Off contract spend

- Inventory Visibility

- Haphazard material environment

- Reduced TransparencyNegative

Impact

HIGHLIGHTS




Following are ‘to-be-blamed’ reasons behind most of the MMDM failures.

- Lack of domain expertise

- Change Management

- Project Process Establishment and Tracking

- Complex Solutions

- Non-Prudential output

To avoid these keep following aspects in mind for selecting your data

consultancy vendor/partner

- Automated Platform/Software

- Robust Process

- Methodical Proven Approach

- Data Expertise and Domain Experience

Common MMDM

Project Pitfalls

HIGHLIGHTS




POLL QUESTIONS


a) Inefficient search, find, and compare capabilities

b) Duplicate identification

c) Maverick spend

d) Cryptic data description

What are the existing pain areas affecting

your business efficiency?

POLLQUESTION #2



Search Efficiently

“Part descriptions are short, cryptic and often obsolete, so shop-floor technicians are unable to locate parts and determine if it will meet their needs.”

Reduce Inventory Costs

“We are mandated to cut inventory carrying costs by 8%, but the presence of duplicate items is diluting our efforts, and we end up stocking the same item multiple times in different storage bins.”

Create New Items Easily

“Technicians resort to continually creating new items in the master because they can’t find the ones that already exist.”

Leverage Your Spend

“My suppliers hide MFR information, but I’m sure I’m buying the same part from multiple distributors, and need to leverage that spend.”

Manage Categories

“I want to setup commodity sourcing strategies for high value items and strategically critical commodities for my plants, but lack the necessary spend overview.”

Cross Plant Inventory

“My plant in VA scraps spares for the NCX-10 bottling machine since they are upgrading to XLT-133 … however, the plant in WA still purchases those very same spares.”

VISIBILITY & UNIFORMITY ACROSS PLANTS & SYSTEMS

Scenarios where Businesses realize the need for Material MDM

The Need for Material MDM

www.Verdantis.com | [email protected]

• The most critical Enterprise-level program that companies undertake

involves installation of a new ERP or consolidating data for

geographically dispersed organizations.

• It is imperative to load reliable data into the ERP to reap the desired

benefits of upgrades and consolidation.

• Corrupt data will only lead to inefficiencies, lower ROI and possibly

mask negative outcomes.



ERP/EAM IMPLEMENTATION


MERGERS & ACQUISITIONS


• When two companies come together during a merger or an

acquisition, they expect that the new whole will be greater than the

sum of the parts.

• Economies of scale will bring cost reductions and cross selling

products will increase revenue.

• Such events are a great reason to start data quality initiatives and

put a governance program in place to improve reliability.



MERGERS & ACQUISITIONS



• Whenever a company is looking to remove inefficiencies from

business processes, it is foundational to include a data cleansing

project from the very beginning.

• Reliable, consistent and high quality data provides the input for

analysis, business intelligence and fact based decision making.


The Need For Material MDM

PROCESS IMPROVEMENT


POLL QUESTIONS


a) Cleansed consolidated material description

b) Improved search, find, and compare functionalities

c) Reduction in maverick spend

d) Transparency into inventory carrying costs

e) All of the above

What are your expected benefits post implementing

MMDM solution?

POLLQUESTION #3




• Enhance business productivity

• Visibility into contract spend

• Lower inventory carrying cost

• Reduced material requests per year

• Inventory deletion

• Increase plant uptime

What Businesses Gain from Implementing Material MDM




• Manage Tasks and Projects to Improve workflow and Increase

throughput

• Faster project implementations with domain-specific data templates

• Embed Advances in categorization, classification and attribution

• Increase ROI on ERP projects:

• Initiatives

• Upgrades

• Maximize efficiency going forward

What Businesses Gain from Implementing Material MDM



• Proven Capability

• Proven deployment methodology supported by latest technology to provide a superior material data management infrastructure

• Multi operational infrastructure. Spans Engineering, Supply Chain, Commodity Management, Sourcing, Manufacturing, 3rd

Parties, etc.

• 200+ successful implementations over 100+ clients

• Transparently demonstrate capabilities through live software and services Proof of Concept

• Core Technology

• Highly scalable technology using AI accommodates large complex projects

• Intelligent technology insulates user from undue complexity while ensuring accurate data is captured and assigned

• Preconfigured technology delivers fastest time to value

• Robust materials master data management

• Pattern Knowledgebase gleaned from the processing of over 100M materials for our customers

• PLM/ERP/EAM System agnostic

Key functionalities of Verdantis MMDM


The Client – A world-leading producer of flat-rolled carbon, stainless and electrical steels, with added focus on automotive, appliance,

infrastructure and manufacturing, construction and electrical power generation and distribution markets.

The Data –

• Purchased Parts MDM initiative was deemed necessary to drive productivity, profitability and superior competitive edge

• 425, 000 items coming from numerous suppliers

• Multiple source systems with varying data storage structure

• New e-procurement system was being put in place

• No eagle-eye view of the actual size and details of the inventory, supplier base and customer base

Verdantis Benefits –

• Cleansed and Enriched Material Master Data

• Enhanced search, empowered maintenance teams

• Lower inventory and handling costs

• Supply Chain risk mitigation, decreased plant downtime

• Higher Bottom-line savings on total spend for different indirect commodities

• Optimized ROI from procurement and ERP initiatives

Material MDM During Process Improvement Efforts

Verdantis Client Cases


Company Profile of Process Manufacturer

• 8 Billion Annual Revenue

• 1 Billion Annual MRO Spend

• 400 Million Inventory Value

• MRO Material Master Count

• Post Initial Merge of Systems 400,000 Items


How Material Master impacts the Balance Sheet and the P&L

Harmonization Results

• SKU Count

• Post Cleansing and Enrichment - 340,000 Unique Items

• Raw Count Improvement

• 15% reduction in total SKUs

• 10% identification of duplicate inventory assets

Verdantis Client Cases



Benefits of implementing the Data Cleansing Initiative

Annual Inventory Carry cost reductions of 4.4% (Factored cost of capital) as write-down (Positive impact to balance

sheet)

• 400 Million in Inventory

• 10% Duplicate Identification

• 40 Million in Duplicate Inventory value

• Write Down of Factored Costs at 4.4% of 40 Million = $1,760,000

Cost Reduction on aggregation of demand across 15% of $1BN in MRO

• 1 Billion in Maintenance, Repair and Operations Material

• 15% Identified through Harmonization as Similar (Across 10% Supplier Base)

• 150 Million addressable spend

• 12.5% reduction in costs through strategic sourcing

• Cost Reduction of 12.5% of $150 Million = $18,000,000

ANNUALIZED NET COST REDUCTIONS FROM : DATA CLEANSING = $19,760,000

Real Dollar Benefits of Data Cleansing



Benefits of implementing the Data Governance Initiative

Verdantis Integrity for Reduction of Maverick Spend

• 80% of the 1B Maintenance, Repair and Operation Spending is covered by preferred / pre-negotiated contracts –

$800 Million in Spend

• Data Governance improved Catalogue Quality –Reduced Maverick Spend from 40% to 25%

• 15% gain in compliance = an additional 120 Million in contracted spending

• Average of 16.5% Cost Reduction for pre-negotiated categories

• Cost Reduction of 16.5% of 120 Million = $19,800,000

ANNUALIZED NET COST REDUCTIONS FROM DATA GOVERNANCE = $19,800,000

COMBINED ANNUALIZED NET COST REDUCTIONS: $39,560,000

Real Dollar Benefits of Data Cleansing


• Verdantis, with its solutions based on Artificial Intelligence (AI) technology, and its domain expertise to

deliver projects on time and within budget, make it a leader in the field of Material Master Data

Management.

• Over 12 years of Material and Product Master expertise and projects with Global clients delivering

unmatched technology and attention to ROI.

• The AI driven tools and domain specific knowledge base automatically classify, de-duplicate, enrich,

and manage master data.

• Verdantis SaaS deployed solution components are compatible with all leading ERP / MRP platforms

adopted by Global 2000 organizations.

• Our Expertise:

• MDM solution for MRO Materials

• MDM solution for Services

• MDM solution for Chemicals


Why Verdantis?



Our Customer Base(Sector Wise)

29%

24%19%

17%

11%

Oil & Gas

Utilities

Natural Resources

Manufacturing

Food Processing

THANK YOU!

www.Verdantis.com

CONTACT US:

103 Carnegie Center, Suite 201Princeton, NJ 08540(+1) 866 987 4463 | [email protected]


ENHANCING BUSINESS WEBINAR EFFICIENCIES WITH MMDM€¦ · Data Management with a primary focus in materials. Related experience in Data Warehousing, International Supply Network,

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