How Supplier Master Data Management Works For the Benefit Of End Users

  • Added:
    Feb 15, 2014
  • Article Views:
    1891
  • Word Count:
    447
How Supplier Master Data Management Works For the Benefit Of End Users Photo by Jessica  Bank

Being a comprehensive strategy, MDM always works towards achieving its main objectives, i.e. to produce and maintain a unique, accurate and decision driving business resource that contains vital information regarding its data assets. With the help of regular maintenance and optimization, this data can be delivered as a service to business end users, who operate across different cross-functional divisions and organisational premises.

However, most companies are unaware of the fact that MDM solutions also provide considerable amount of value and benefits to corporate end users. MDM brings process efficiencies across the business, and gives end users the opportunity to achieve targets at minimal cost and energy. Clean, decision driving data allows employees to be more active and responsive towards daily corporate challenges.

A powerful MDM strategy when coupled with effective MDM tools also assists data managers in maintaining and processing a clean information asset. It skips major data corruption issues and allows managers to tend to data issues quickly, for decreased business disruption problems and faster realization on IT-based investments. The same virtues are also applicable to a diverse MDM initiative, such as Supplier MDM.

Supplier MDM is a process that ensures and maintains the accuracy of business supplier information and organisational extended workforce, at all times. It empowers procurement departments to optimize supplier base, and accordingly, align sourcing strategies as required by the organization. Moreover, the resulting governance framework and approval workflows guarantee that all users located across different cross-functional divisions, stick to the supplier data creation standards laid down by the business. This also helps management to regulate sourcing, and thus, reduce the total amount of maverick purchasing.

Supplier MDM also paves the way for the introduction of efficient processes that not only assist in qualifying and preparing suppliers for transactions, but also helps them participate in similar sourcing events. One can easily create supplier profiles based on different financial and non-financial risk factors. Moreover, with the help of compatible data quality tools, it also guarantees timely identification of supplier-based risks and compliance issues; and thus, it allows end users to follow major business elements ranging from contract compliance to non-price parameters, such as quality and insurance certificates.

Crystal clear supplier data, which comes from using powerful yet result-oriented MDM tools, helps procurement teams identify major parent-child linkages from its vast multitude of suppliers. They can also track market changes, such as mergers and acquisitions, thanks to the regular refreshment of supplier data. This allows procurement teams to consolidate the supplier base with immediate effect. Using interactive dashboards that not only enable speedy sourcing processes, but also enable supplier performance and compliance monitoring, businesses can now collaborate with service providers and suppliers to achieve improved organisational performance and enhanced sales.

Author's Profile

Jesica Banks is a recognised author and data expert at a large MDM solutions provider. Her work revolves around educating people about the advantages of MDM.


Please Rate this Article
Poor Excellent