The status of material master data management implementation : implications on supply chain processes in FLSmidth

Abstract: Decision making is one of the key supply chain activities within in any organisation. Sound business decisions should be based on relevant, accurate, reliable and timely information. Although data and information are two distinct concepts, these terms are used inter-changeably. Information derived from various systems within the organisation informs decision making. The quality of information depends on the quality of master data. Master data consist of sets of objects, identifiers, attributes and rules described in a consistent and uniform manner to form the core of the enterprise, and are used across multiple business processes. Master data are critical to support the transactional and analytical operations of a business. Furthermore, and more specific to supply chain management, the use of inconsistent and fragmented material master data creates supply chain inefficiencies and results in poor market penetration and a slowdown in time-to-market. Material master data management (MMDM) is the process of standardising and centralising the management of material master data elements, from the creation to the ownership and governance. The supply chain in organisations is mainly concerned with the movements of goods through the value chain. The identification of these goods through quality material master data has an impact on the efficiency of the supply chain. Mergers and acquisitions are one of the most common expansion strategies for organisations. However, mergers and acquisitions result in disparate systems and disparate sets of master data for the new organisation. FLSmidth (FLS) is a leading provider of engineering, equipment and service solutions to the global cement and mining industries. From as early as 1990, the company has grown through mergers and acquisitions of various new companies, including Pfister, Möller Materials Handling, Vecor, Abon Engineering and Buffalo. Resultantly FLS has many disparate enterprise resource planning (ERP) systems, each owning its own set of data. Each company that was bought operated independently under the FLS umbrella with its own ERP system hosting its own set of master data in terms of a general ledger, suppliers, customers and materials...M.Com. (Business Management