Are material master data duplicates limiting your business growth?

Introduction

In today’s fast-paced business landscape, the significance of material master data cannot be overstated. It serves as a crucial foundation for numerous business operations, providing accurate and comprehensive information about the materials a company uses or produces. However, when material master data duplicates arise, they can have a significant impact on business growth.

Understanding Material Master Data Duplicates

Definition and types of material master data duplicates
Material master data duplicates refer to the presence of multiple records for the same material in a company’s database or system. These duplicates can occur in various forms, including identical records with different identifiers, slight variations in material descriptions, or inconsistencies in classification.

Common causes of material master data duplication
Several factors contribute to material master data duplication. Poor data entry practices, such as manual input errors or inconsistent naming conventions, often lead to duplicates. Additionally, lack of data governance and control mechanisms, as well as challenges in integrating data across various systems and platforms, can exacerbate the issue.

The Root Causes of Material Master Data Duplicates

Lack of standardized data entry and maintenance processes
One of the primary causes of material master data duplicates is the absence of standardized data entry and maintenance processes. Inconsistent naming conventions, varying data formatting, and inadequate validation rules can contribute to the creation of duplicate records.

Inadequate governance and control mechanisms
Insufficient governance and control mechanisms within an organization can also lead to material master data duplicates. The absence of data ownership, unclear guidelines for data management, and a lack of accountability can all contribute to the proliferation of duplicates.

Integration challenges across systems and platforms
Integration challenges across different systems and platforms can introduce material master data duplicates. When data is transferred or synchronized between systems, errors or misalignments may occur, resulting in the creation of duplicate records.

The Impact on Business Growth

Inefficient decision-making and slowed market responsiveness
Material master data duplicates impede efficient decision-making processes. Inaccurate or conflicting information can hinder management’s ability to make informed choices and respond promptly to market demands. This can hamper competitiveness and hinder business growth opportunities.

Customer dissatisfaction and erosion of brand reputation
Material master data duplicates can indirectly impact customers. Inaccurate order fulfillment, delayed deliveries, or incorrect product information can lead to customer dissatisfaction. Such experiences can erode brand reputation and result in lost business opportunities.

Barriers to scalability and hindered expansion opportunities
Efficient scalability and expansion often rely on reliable and accurate material master data. Duplicates can impede these processes by introducing inefficiencies, increasing costs, and hindering data-driven decision-making. As a result, businesses may struggle to seize growth opportunities and expand into new markets.

The Consequences of Material Master Data Duplicates

Impeding operational efficiency and accuracy.
Material master data duplicates can hinder operational efficiency by causing confusion and delays. Employees may waste time searching for the correct data, resulting in decreased productivity. Moreover, these duplicates undermine data accuracy, leading to erroneous decisions and potential financial losses. Negative effects on procurement, planning, and production processes
Duplicates in material master data can have a cascading effect on crucial business processes. In procurement, purchasing teams may be misled by duplicated records, leading to incorrect order placements or missed opportunities for cost savings.

Financial repercussions and cost implications
Material master data duplicates can have significant financial repercussions for businesses. Duplicate records may inflate ERP Material cost, inventory costs, leading to unnecessary inventory carrying costs.

Contact us to know more of how we can help you with resolving the material master data duplicates

Karthikeyan Subramanian

Karthik S is our in-house Master Data Quality Manager certified by ISO-8000 for Data Quality and Enterprise Master Data. He comes with 10+ years of experience with prior experience in handling customer, asset & engineering data, improving data quality & accessibility, eliminating data loss and standardizing data to match industry standards.