Key Supplier Business Processes and how they benefit from MDM
You spend huge sums of money with your suppliers. Small increases in efficiency can yield big savings. Understanding your relationships with your suppliers allows you to partner with them more effectively to ultimately serve your customers better. With the right MDM solution, you will be able to consolidate these relationships, maximize efficiency, and better serve your customers. This is why Master Data Management is now so critical to you.
Below are just a few examples of business processes that depend on good, accurate and up-to-date supplier information.
Locally-Maintained Data Management
Do your individual work sites keep in close in touch with their suppliers? Most do. Do individual sites communicate with each other to keep information current and consistent? Most don’t. Master data management programs coordinate supplier information between sites without giving up local control over data. With MDM, you get to combine the best of local control with central visibility and oversight.
On-Boarding and Maintenance
Approving and working with new suppliers is an important business process. Does your process have the centralized governance that it needs? Is your supplier data automatically synchronized to all systems where it’s needed? MDM can solve this, but it can go even further. MDM empowers your suppliers to manage their own data in a self-service portal saving their time and yours while keeping data up to date.
Does your team have the agility to handle changes to OFAC, C-TPAT, or other supplier-related regulation? An effective MDM program makes data oversight easy. The right MDM solution identifies shortcomings immediately and spends your effort fixing problems instead of hunting for them.
Re-Purposed Procurement Systems
Do you have procurement systems handling transactional procurement data? That’s great! But if your procurement systems is being repurposed to manage supplier master data, this is a sure-fire recipe for trouble. Don’t force the procurement team to ignore their daytime job and instead perform the role of data stewards. Detecting duplicate suppliers and tracking historical data should be done in your MDM, not in your procurement system.
MDM is the only cost-effective solution to integrate and standardize your supplier data. Data lineage and complex survivorship rules are built-in with MDM systems to ensure that you track past changes and differences between systems as well as managing the latest information. Supplier relationship management programs can only be successful when based on a foundation of accurate and maintainable supplier data.