A leading Indian industrial manufacturing company conducted a comprehensive project management audit to improve practices and overall maturity level.
Data Cleansing & Categorization
A leading Pharmaceutical company significantly improved its spend visibility through Data Quality Enhancement Initiative.
Overview
The company was launching an ERP (SAP-Ariba) upgrade program and was looking for item master data cleansing and categorization services in order to have a clean start with the new system. A significant portion of the spend was on indirect material and services, spread over multiple plant locations, which made this exercise critical to the success of the project.Challenges
- Inadequate & inconsistent item description, hidden duplications, and inaccurate classification.
- A key driver of poor data quality was an inefficient Data Governance Process and System.
Solutions
Our rigorous process on Data Quality Enhancement has not only improved the spend visibility & analytics but also enabled effective use of features such as Guided-Buying on the SAP-Ariba platform.
Various work streams included –
- Data Cleansing
Initial level cleansing to segregate data by quality & nature of issues. - Specification Enrichment
Item specification enrichment as per standard data taxonomy & Structure - Item Categorization
Granular categorization up to 3 levels. - UNSPSC Mapping
Line item level UNSPSC codification & mapping to level 3 category. - Data Governance Structure
Define and implement a robust data governance policy that included a structured approval process - Spend Analysis
High-level spend analysis to identify cost saving opportunities.
Results
A clean and structured Material Master enabled higher spend visibility, the opportunity to effectively reduce costs as well as manage optimal inventory, and above all a data driven decision making.
Key outcome of this exercise included –
- Over 90% reduction in number of active item codes.
- Accurate and usable spend analytics reports.
- Efficient procurement through standardization & catalog buying.
- Clear roadmap to optimize indirect spend sustainably across all plant locations.
- Opportunity to reduce overall procurement costs by 10 to 15% in the first wave.
Improve your data quality to ensure effective decision making
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