Blog Post

Why Efficient Supply Chains Need Accurate Master Data

Why supply chain efficiency relies on accurate master data

Accurate and accessible master data is an essential ingredient in reducing downtime, improving efficiency and ensuring safety on mine sites.

But the benefits go beyond these crucial areas, with impressive gains to be made in supply chain efficiency when accurate master data is leveraged by your ERP.

These efficiencies are only made possible if the source data used is accurate, a benefit that can now be realised with AssetOn’s Master Data service.

AssetOn will deliver our master data service for your new and in-service equipment and supply master data packages for SAP, Oracle and other major CMMS and ERP systems.

It’s bringing unprecedented levels of data accuracy to the industry, and promises massive efficiencies in supply chain management.

Accurate catalogues free up working capital

The material catalogue is the foundation for inventory, purchasing and maintenance management.

Supply chain departments know the gains to be made in accurate material catalogues but achieving this is problematic with either manual systems or when using inaccurate source data.

Having an accurate catalogue loaded into the ERP, and eliminating duplication due to supersession or equipment upgrades, will eliminate dead stock and free up substantial working capital. It means the parts on the catalogue are linked to the right equipment and can be easily identified by the maintenance team.

AssetOn worked with a coal miner recently and identified over 300 parts that existed in the catalogue but had been superseded and no longer linked to a task BOM. By linking these parts to the relevant catalogue numbers freed up dead stock and reduced working capital.

Reducing supply costs through system purchase

Ordering parts outside of the system is inefficient and costly. Direct purchasing requires layers of approval and human resource, and may side-step negotiated supply agreements resulting in a higher price paid for these parts.

With accurate master data loaded into the ERP, ordering can be completed through the system itself which not only saves money – system ordering is about three times more cost efficient than direct purchase ordering – but also ensures data accuracy for inventory and warehousing.

Having accurate master data is the simplest and most effective way to eliminate waste and improve supply chain efficiency.

To learn more about how AssetOn can improve your supply chain management, visit asseton.com.au/master-data or call 1800 277 386.

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