Master Data Management Helped a Retailer To Save $8M by Improving Compliance and Spend Visibility
Master Data Management as a Competitive Advantage About the Client The client is one of the leading private industrial corporations in the US with more than 15,000 stores spread globally. The organization is divided into three retail divisions- automotive, healthcare, and consumer goods. The firm generates more than $10 million in annual revenues worldwide. The [...]READ MORE >>
Master Data Management as a Competitive Advantage
About the Client
The client is one of the leading private industrial corporations in the US with more than 15,000 stores spread globally. The organization is divided into three retail divisions– automotive, healthcare, and consumer goods. The firm generates more than $10 million in annual revenues worldwide.
The Business Challenge
To thrive in today’s data-driven business revolution businesses will have to adopt an efficient approach to master data management. In the retail sector, the type of data collected, the format of the data, along with the platform used to manage and assess data may vary across business units. Hence, a major problem for retailers revolve around structuring and consolidating disparate datasets to improve their business functions while bridging the gap between rhetoric and reality. Also, the lack of a sound master data management strategy can cause major problems that diminish the value of data. Addressing these issues by implementing a master data management framework can help resolve many of the organizational concerns faced by retailers.
Effective data management is not the only issue of concern for retailers, data security is also emerging as an important aspect of master data management and has a special effect on a retailers’ attempt to centralize data. However, as the business complexity, the sales channels, and the number of customers continue to grow retailer industry players have access to more data than ever before. This raises great concern and presents challenges regarding effective data management.
In this case, the client’s inefficient master data management approach created unnecessary risks and put significant cost savings out of reach. The client approached Quantzig to help them leverage master data management solutions to address its master data challenges. By developing an effective master data management strategy, the client wanted to improve spend visibility and inefficient purchasing practices, and deliver effective risk assessments. Also, the client was aware that a robust master data management (MDM) system would help them eliminate multiple versions of the same master data across their business units.
Problem Statement 1
The client had to transform their master data management strategy to gain greater visibility and enhance the overall business processes. They also wanted to enhance regulatory compliance and improve risk management through a master data management framework.
Problem Statement 2
A decentralized customer data governance model proved to be a major predicament which prevented them from gaining a centralized view of customer data.
Problem Statement 3
A delay in customer updates resulted in the collection of irrelevant data from customer touchpoints, hence the client wanted to develop a centralized master data management system to gain an accurate, updated view of their customers.
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Solutions Offered and Value Delivered
The analytics experts at Quantzig helped the client develop a structured approach to master data management to avoid missing new opportunities for timely analysis, enhanced growth, and accelerated M&A’s. The solutions offered were divided into the following three phases:
The initial phase of this engagement revolved around the creation of a master data management roadmap, including a data governance model, category management, and a vendor data management model. This helped them enhance the visibility and efficiency of their procurement processes.
Though many functions within the company played a key role in master data management, including IT, procurement, finance, and the data management teams, they were working in their own silos. To address this challenge, our master data management experts offered customized solutions to aid the development of a customized master data management model.
The third phase of this engagement revolved around strengthening the master data management foundation to enable synchronization of customer and intermediary datasets. The master data management framework also offered seamless delivery and better departmental collaboration.
Analyzing and managing the data obtained from disparate data source was indeed a gargantuan undertaking. The right analytics foundation was needed to support such huge volumes of data generated by the client. And this was the main focus of this engagement, our data analytics experts developed a robust master data management strategy that enabled the client to access the information in the required format to provide the anticipated benefits. The value of this assessment was realized through the custom-built framework that enabled the client to access the information they need to increase sales and reduce costs, leading to an annual savings of $8M.