A dedicated interim procurement support helped successfully handle the combined challenge of higher level attrition and internal strategic changes.
Strategic Sourcing in Travel Management
A leading global automotive products manufacturing company sustained a good quality procurement data by outsourcing the Master Data Management (MDM) activity.
Overview
The company was looking for end-to-end item code creation support to maintain the quality of their master database as per their defined data governance process.
Challenges
- High inflow of code creation requests with inadequate & inconsistent item description.
- Lack of robust process to identify hidden duplications.
- Limited internal bandwidth and expertise on item classification & UNSPSC assignment.
- Lack of dedicated MDM support for end users.
Solutions
Our deep expertise in MDM and flexible working model helped efficiently fulfill the item code creation requests while maintaining high data quality.
Various work streams included –
- Request Validation & Communication
- Specification Enrichment & Taxonomy Maintenance
- Category Assignment
- UNSPSC Mapping
- Code Creation
Validation of the item code creation requests as per the set data governance protocols i.e., duplication check, adequate description etc. and communication to end users.
Item specification enrichment as per standard data taxonomy structure in consultation with the end users.
Accurate category assignment as per defined category structure.
Line-item level UNSPSC mapping & appropriate Noun-Modifier assignment.
Item code creation using MDM tool as per the defined process.
Results
Outsourcing the MDM maintenance activity helped sustain good data quality while maintaining fulfillment SLAs even with a huge inflow of requests, which further improved overall internal customers satisfaction.
Key outcome of this exercise included –
- Clean and organized master database.
- Near 40% active rejections thereby avoiding potential duplications as well as items with inadequate description.
- Reduced number of active codes – from over 100K to under 25K resulting in better control.
Focused approach towards MDM activities helps maintain good quality data while improving procurement efficiency as well as internal stakeholders’ satisfaction
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