Optimizing Your Master Data to Improve MRO Performance


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For MRO procurement professionals to do their jobs effectively, they need timely and accurate master data. This data provides a 360-degree view of the organization's customers, prospects, and suppliers. When master data is optimized, it becomes easier for procurement professionals to identify opportunities and make better decisions.

Here's how master data optimization can improve MRO performance, delivering cost savings, efficiency, and risk reduction.

Getting a Handle on Master Data Management

Master data is a critical part of organizational operations, and it's essential to manage master data effectively to achieve success. There are five basic steps for engaging in effective master data management:

  • Establish a Data Framework: Create a data policy, develop a schema, and formalize your data rules.
  • Conduct an Audit: Define what master data is and isn't.
  • Centralize Your Master Data: Create a single source of truth that governs data throughout the organization.
  • Democratize Data Access: Enable all your teams to reliably access and use your master data.
  • Enhance Your Data: Keep your data up-to-date, and cleanse and enrich attributes as necessary.

By taking these steps, organizations can ensure both the quality and availability of master data in the procurement department. This is what enables procurement professionals to add context to their purchasing decisions and supplier relationships.

Most importantly, staying true to this process will ensure that the company's master data is complete, accurate, and consistent.

The Benefits of Master Data Management for MRO Procurement

Optimizing your master data has multiple benefits for MRO procurement, as well as the organization as a whole. Here a just a few:

Better Decision-Making

When procurement professionals have access to accurate and timely master data, they're able to make better decisions about MRO purchases. This leads to cost savings and improved efficiency.

They can also gain deeper insights into their supplier relationships and the supply chain. Operationalizing master data enables a deeper analysis of MRO procurement performance and can reveal opportunities for cost savings.

Reduced Risk

With accurate master data, organizations can avoid risks associated with MRO purchases, such as making the wrong purchase or working with a supplier that isn't reputable. When combined with inventory optimization, operationalized master data helps procurement professionals avoid maverick and tail spend as well.

Productive Supplier Relationships

When master data is available and accurate, it's easier for procurement professionals to identify opportunities and issues with suppliers. This leads to improved communication and stronger relationships.

This is especially important in MRO procurement. Many companies rely on a large number of suppliers for their MRO needs. Master data ensures every purchasing decision is guided by a contextual analysis of each supplier and the needs of the business.

Leverage a Collaborative Master Data Solution

To optimize master data, many organizations turn to a collaborative master data solution. This type of solution can provide procurement professionals with product information management capabilities, powerful workflows, and easier data stewardship.

Most importantly, it allows companies to share and manage master data effectively across the enterprise. For example, IBM's Product Master solution, "creates an accurate and up-to-date repository of product and service information that can be used throughout organizations to help achieve strategic business initiatives."

Companies must be able to centralize their master data and enable data access to each business function. This is key to improving decision-making and reducing the risk of making bad purchasing decisions.

Improve MRO Performance

Master data is a critical part of organizational operations, and it's essential to manage master data effectively to achieve success. Organizations should take the basic steps to optimize their master data and democratize access.

By doing so, the company can enable MRO procurement professionals to add context to their purchasing decisions and supplier relationships.

To learn more about how you can optimize your data, don't miss ProcureCon MRO 2022, happening from October 17th to 18th at the Hyatt Regency in Atlanta, Georgia.

Download the agenda today.

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