17 Jun Data Quality
Master Data Management (MDM) underscores the critical importance of data quality, encompassing attributes such as accuracy, completeness, consistency, uniqueness, validity, and timeliness. These attributes are indispensable for achieving a reliable “single version of the truth” across various systems. High-quality data enhances decision-making, minimizes errors, and improves efficiency. To implement data quality in MDM, organizations should establish governance policies, utilize data quality tools, regularly cleanse data, and ensure consistent data entry practices. A case study with Grihasoft demonstrated a significant reduction in duplicates and improved data quality metrics.
In Master Data Management (MDM), ensuring data quality is crucial for reliable business operations and informed decision-making. Key aspects of data quality in MDM include accuracy, completeness, consistency, uniqueness, and Logics. These attributes are essential for creating a “single version of the truth” and harmonizing data across different systems.
Data Quality Requirements in MDM:
- Data Accuracy: Data should accurately represent the real world, free from errors.
- Data Completeness: Data should contain all necessary information without any missing values.
- Data Consistency: Data should be uniform and consistent across different systems and applications.
- Data Uniqueness: Data should be free from duplicates and ensure that each record represents a unique entity.
- Data Validity: Data should conform to predefined rules, standards and constraints
- Data Timeliness: Data should be fresh and relevant of data for the intended use in master data in other words refers to how up-to-date and available data is for its intended use as Master
Importance of Data Quality in MDM:
Improved Decision-Making:
High-quality data enables organizations to make more informed and strategic decisions.
Reduced Errors and Discrepancies:
MDM helps eliminate inconsistencies and duplicates, leading to fewer errors in business processes.
Enhanced Efficiency:
Centralized data management reduces the time and effort required to reconcile data across different systems.
Implementing Data Quality in MDM:
Establish Data Governance Policies: Define clear policies and procedures for managing data quality, including data standards, metrics, and processes.
Implement Data Quality Tools: Utilize MDM tools to automate data quality processes, such as data cleansing, profiling, and validation.
Regularly Cleanse Data and Confirm: Conduct periodic data audits and Enrich/cleanse data to identify and correct quality issues.
Ensure Consistent Data Entry Practices through governance mechanism: Implement consistent data entry practices across all systems and applications to minimize errors.
For one of the clients Grihasoft provided a comprehensive review of their Item Master, We had removed about 22% dupes and also attribute fill rate (Grihasoft Dictionary) went upto 65% overall. Identified redundancies and provided road map for any future MDG tasks
Business Value:
High-quality data is essential for various business functions, including Supply chain, finance, marketing, customer service, etc., We are herewith showcasing how and what is the impact and how it will effect an entity
Vendor Master
Vendor master accuracy refers to the correctness and completeness of the information stored about vendors in a company’s ERP system. Accurate vendor master data is crucial for efficient operations, financial integrity, and risk management. Inaccurate data can lead to errors in financial issues like payments, duplicate payments, fraud, and difficulty in tracking spending and also regulatory and tax compliance and avoid legal issues.
Above all, the organization get the option to keep your data secured by providing limited access to sensitive data to some key authorities in the company.
Boost profits
A well-organised vendor data helps you find suppliers with the best deals at the moment and avoid extra expenses. For instance, it can show which vendor is now offering discounts for early payments so that big savings can be possible. Such pieces of information are indeed useful for adjusting your cash flow and saving money on every order.
Track suppliers
Not all suppliers stand tall on their on-time delivery promise. And, when you work with a large pool of suppliers, it is difficult to keep a tap on all of them regularly. However, an idea vendor master data helps you to track suppliers to help you decide which supplier to work with and whom to avoid.
Cut costs and boost efficiency
With high-end vendor master data, automated orders is possible to avoid duplicate payments. For instance, most high-functional organizations like healthcare use vendor master data to automatically restock consumables for the future. That saves them on last-minute runs
Handle emergency situations
Vendor master data can help you in emergency situations. With vendor master data, the organization can quickly connect with other suppliers to restore stocks with ease as updated data will provide alternative suppliers and details with touch of a button
For a well-known hospital conglomerate, Grihasoft was able to provide the Vendor Master MDM services and able consolidate into a centralized DB. The Vendor master reduced from 35k lines to 6k active lines across locations with each vendor mapped to the specific location on the basis of whether it is a Capital Purchase, Pharma purchase, etc.,
Item Master
Item master accuracy refers to the correctness and completeness of the data associated with individual inventory items, such as product details, transactional information, and stock levels. Accurate item master data is crucial for efficient supply chain management, inventory control, and in turn company’s profitability
At the outset, we at Grihasoft can safely say any Item master without proper MDG process in place will have inherently 20-25% dupes and redundancies. Which in turn affect Inventory cost overruns, spend issues and so on. Hence Grihasoft always suggests one-time cleaning followed by a MDG to keep masters pristine and healthy.
Improved Decision-Making:
Accurate item master data allows companies to make informed decisions about inventory management, procurement, and production planning, leading to better efficiency and reduced associated costs.
Reduced Errors:
Accurate data will eliminate errors in orders and handling thereby reducing the risk of costly mistakes which will affect financially.
Better Customer Service:
Accurate item master data ensures that customers receive the correct products and orders are fulfilled efficiently, leading to improved customer satisfaction.
Grihasoft is a pioneer and well versed on all of above MDM tasks. For any queries and case studies mail conatct@grihasoft.com
