A screen door on a submarine is illogical – and so is any Supplier Information Management (SIM) program without Master Data Governance. Supplier Data Governance is critical for organizations to ensure the quality of their supplier data and realize the maximum value from their programs.
The goal of any S-MDM or SIM program is to gather, maintain, govern, and disseminate supplier information regardless of source or system. Sounds simple, but there are a lot of moving parts as it relates to supplier information.
Procurement processes that spawn global, local and cross-functional organizations yield a large number of variations within business needs for supplier data. However, complicated networks of processes, systems, and customer requirements make it difficult for organizations to efficiently access and proactively capitalize on actionable supplier information. Supplier data can quickly become stale, inconsistent, inaccessible, and unreliable. A quick check in to the number of duplicate records in any ERP system illustrates this.
Supplier Master Data Management is there to ensure that the organization uses consistent versions of the same data across different parts of the organization – from the initial on boarding of the supplier and throughout their lifecycle. Data management and governance tools, processes, and organizational best practices are core in keeping data harmonized across the organizational ecosystem.