A supply chain is a distribution network from the business entities where products are manufactured to consumers who receive them. With the increase in business sales, the data expands. With increasing data, it will get harder to structure them. It might lead to data silos, duplication, and excess inventory.
In traditional supply chain management, with multiple systems to collect data, it lacked efficiency when the quantity increased. Quantity crises often cause quality issues.
Having scattered data means there isn’t a chance to have an overview of the process. It may lead to delayed or insufficient responses, too many unpredictable errors, transporting impediments, production wastes, and hindered growth in finance.
So, how to tackle this? That’s when master data comes into action.
Master data manages to get all the available information regarding the suppliers, vendors, materials, shippers, and customers into systematic and organized data sets. It will ensure a reliable source to avoid mistakes at every stage of the supply chain.
Supply chain MDM helps businesses get a complete overview of the supply chain process, especially with the business prospects that constantly change and expand.
Challenges faced in the supply chain with fragmented data are
- Accumulation of unwanted stocks by not tackling duplication.
- Excess inventory that lies dormant in the enterprise without yielding any profit
- Incorrect descriptions of the products may lead to mistakes in order fulfillment
- Difficulty in getting the products distributed from the warehouse and finding the right consumer
- The difficulty for customers to order the products without specific barcode, description, name, size, quantity, and price data sets
- The order not matching the description of the product in the system
- Financial losses with transportation by not having accurate information
Why MDM is crucial in supply-chain management
Accurate and optimal inventory managementThe inventory system is maintained well by having a consistent process of incorporating new data with the help of master data management. De-duplication gives inventory a quality to be always precise and eliminates procurement of excess stock. It also helps in the effective planning and implementation of new products in the future.
Cloud-based technology and transparencyEnd-to-end data enables internal and external parties to have a clear overview of entries in all steps of supply chain management. It ensures transparency in monitoring product information, improved accessibility, revenue, and cost management. It also helps to have global standard business communication with effective control over what’s happening throughout the chain.
SustainabilityA transparent and consistent database will further lead to managing assets, effective crisis management, comprehensive data governance, and accurate analytics if a merger and acquisition happen over time.
How to effectively implement Master Data Management in a supply chain
MDM needs a tool to operate as a centralized system which usually is managed by a team of people who collect data and extract and divide them into categories. That will further undergo cleansing, standardization, deduplication, and organization.
CODASOL’s software Prosol can help you with effective master data management. Click here to learn more about Master Data Management and how Prosol works.
CODA Technology Solutions Pvt. Ltd. (CODASOL) enables organizations to achieve optimal procurement, inventory management, and inventory liquidation by connecting Master Data with Equipment, materials contracts, pricing agreements, work order planning, and performance.
CODASOL offers PROSOL – A SAAS-based technology platform used for cataloging that ensures data quality and governance.
With PROSOL, enterprises can get a golden record, curated with customizable workflow processes that connect plant integrity assurance embedded within the enterprise’s application.
Data security aspects such as availability, privacy, confidentiality, integrity, and security are addressed within the software offering.
CODASOL further offers services like data cleansing, template design, material grouping, Deduplication, data enrichment, asset & BOM master, data enhancement, data standardization, equipment master, functional location, vendor master creation, and customer master creation.