Why Master Data Management Is the Crux of Supply Chain Resilience
Comprehensive range of Master Data Management (MDM) solutions to support business innovation and growth. Learn about MDM best practices and why it is the crux of supply chain resilience.
Quality data is essential to every business, especially in the supply chain industry, because it has several data points to manage. This has necessitated using different systems such as enterprise resource planning (ERP), customer relationship process (CRM), and warehousing software to generate and manage data. But if these systems are not connected, the possibility of error is very high, as there could be a different version of the same data.
Avoiding the complexity of a disconnected system can help businesses ensure that operations are not negatively affected. That said, let’s take a look at some of the challenges faced by the supply chain industry and why using master data management can help to build resilience.
Challenges faced by the supply chain industry
It is no doubt that supply chain managers devote themselves to achieving uninterrupted supply chain processes. They do this by leveraging traditional supply chain systems. But with the complexity of the global supply chain today, there are several challenges that supply chain leaders face when the right technologies are not implemented.
Warehousing: Warehouse management is a critical part of some businesses. Depending on the company's complexity, the data generated and managed in the warehouse can be massive. Some businesses are so big and complex that the managers get overwhelmed with the volume of data they process. This can cause too much or too little inventory and may lead to a mismatch of orders attracting an extra cost.
Slow Lead Time: Managing supplier data with inefficient manual processes ends up in unnecessary workloads, which could significantly slow down the time products are delivered to the consumer. Using multiple traditional systems to process supplier data in the departments within an organization often results in inaccurate, outdated, or unorganized data. Slow lead time could be costly, as it becomes difficult for the business to be predictive enough to take proactive actions at the right time to serve as a competitive advantage and meet demands.
Order Fulfillment: One of the effective ways to be at the edge of the market is the ability to respond quickly to changes in the market. And most companies find it challenging to make these prompt decisions because they cannot access real-time data. Data gathered over time enables supply chain managers to understand consumer behavior and product performance.
How master data management can address these issues
Quality data is essential in the supply chain industry because it vests supply chain leaders with the responsibility of efficiently managing data to improve performance. A centralized system solution like the master data management allows access to consistent data across different departments in an enterprise.
This availability of quality data enhances communication with suppliers, partners, and brokers. It prevents data duplication and encourages transparency and homogeneity. These are the ways Master data management helps businesses.
• Master data management gives a company a holistic view of its processes.
• Master data management supports data transparency and consistency within the organization.
• MDM allows leaders to make an informed decision on inventory management, making it possible to be proactive to prevent inventory problems such as stock out or overstock to meet customers' needs.
• Master data management encourages global collaboration and facilitates smooth communication between suppliers and other parties.
Businesses can avoid costs with master data management because it provides reliable and accurate data that helps to make strategic performance-enhancing decisions.
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