Why you should move to the New Era of Material Management
Over the past decade, the supply chains have grown to be more complex and difficult to manage. Enterprises are on a constant lookout for smart technologies in an effort to shine some light in new directions that can increase the efficiency of the production process and reduce the costs.
Having thousand of external suppliers spread across different geographical regions and selling a broad portfolio of products has proved to be a difficult data management challenge even for the most tech savvy companies.
The prevalence of duplicate records for Vendor and Material master data and the presence of inaccurate and incomplete equipment and Bill-of-Materials (BOMs) data represent some of the most common “speed bumps” in managing and combing the big data streams for a streamlined production process.
Inaccurate data can seriously undermine the strategic and competitive needs of a company, and it can lead to:
- Difficulties in tracking the new materials requests;
- Poor spend analysis which can increase the procurement costs;
- The improper rationalization of spare parts, excess inventory, and higher holding costs;
- Temporary plant shutdowns due to a poor management of spare parts and materials;
- Reduced productivity for the operations personnel who has to sift through unnecessary product data;
Modern supply chains can employ sophisticated systems to eliminate redundant data and ensure a constant level of data quality throughout the business. An integrated data management system that verifies data at every step of the production process and gives organizations an overview of the supply chain is the quickest way to balances inventory levels, eliminate waste, reduce errors and keep ahead of the competitors.
Data management is one of the simplest methods to overhaul the structure of the business from ‘product idea’ to ‘customer’ and see tangible results in a short period. By optimizing their logistics and production process companies can reassess their global production goals and keep up with in an effective manner with the latest consumer trends and demands.