Webinar: Driving Real-dollar returns during ERP Implementations: The MDM Perspective

PRESENTATION
DRIVING REAL-DOLLAR RETURNS DURING
ERP IMPLEMENTATIONS:
THE MDM PERSPECTIVE
Webinar – February 2016
www.Verdantis.com | info@verdantis.com
© 2016 Verdantis Inc. All Rights Reserved.

ABOUT THE
PRESENTER
Arthur Raguette
Executive Vice President
Verdantis, Inc.
Arthur@Verdantis.com | +1 609 799 5665 x225(o)
Arthur is very passionate about the application of innovative
technologies to solve real-world business problems with a strong
emphasis on large enterprise solutions.
He has more than a decade of experience of working with Software for
Master Data Management and Data Governance for multiple domains
and across industries. Arthur’s prior technology passions included high
performance B2B middleware and hybridized SaaS applications for HR,
Employee and Education related domains.

THE WEBINAR
AGENDA
Business Challenges: The Master Data Perspective
Realizing Opportunities to overcome Challenges
The need for MDQI
Choosing your right MDQI partner
Evaluating your DQI project
Business Cases

BUSINESS
CHALLENGES
RISING COMPETITION
Geographical boundaries to competition are
gone. Global Competition continues to drive
cost pressures. M&As across the supply base
combined with verticalization on a global basis
is further tightening limited resources.
GROWING CUSTOMER DEMANDS
New Sources of Information have made the
Customer more knowledgeable than ever.
Demand growth means Businesses are
required to be more receptive and adaptable
MARKET UNCERTAINTIES
The networked economy challenges traditional
Business processes every now and again.
Businesses are now required to plan for managing
risks and uncertainties in advance
TECH ADVANCEMENT
New technologies are disrupting old ways of doing
business and competition can come from
unexpected places. The need to be up to date is
crucial now

REALIZING
OPPORTUNITIES
Opportunities that can help Businesses outperform their Competitors
$
Controlling Costs
High costs are always an issue, but with
new technologies and efficiencies, you
can control costs better and make cost
management a positive for your
business that can help you counter
competition better
Process Integration
The era of silos is gone. Integration of
processes and different business groups
optimizes the chance for Operational
and Business efficiencies
Managing Data better
The new world runs on data, and
companies that manage data better will
get a huge leg up in the race to the top.
A focus on data can help Businesses
manage their objectives and strategies
better

THE NEED FOR
MDQI
ERP INSTALLATION/ CONSOLIDATION
The most critical Enterprise-level program that companies undertake
involves installation of a new ERP or consolidating data for
geographically dispersed organizations. It is imperative to load reliable
data into the ERP to reap the desired benefits of upgrades and
consolidation. Corrupt data will only lead to inefficiencies, lower ROI
and possibly mask negative outcomes.
Scenarios where Businesses realize the need for MDQI

THE NEED FOR
MDQI
M&A
When two companies come together during a merger or an acquisition,
they expect that the new whole will be greater than the sum of the
parts. Economies of scale will bring cost reductions and cross selling
products will increase revenue. Such events are a great reason to start
data quality initiatives and put a governance program in place to
improve reliability.

THE NEED FOR
MDQI
PROCESS IMPROVEMENT
Whenever a company is looking to remove inefficiencies from business
processes, it is a good idea to include a data cleansing project in the
blueprint. Reliable, consistent and high quality data provides the input
for analysis, business intelligence and fact based decision making.

DQI PARTNER
CHECKLIST
Industry expertise
Intellectual Property
Speed
Accuracy
Automation
Business model
Access to top management
Corporate focus on material data quality
Key Attributes to look for in a Master Data Quality Partner

JUDGING A DQI
PROJECT
STAND UP SPEED
How much time
did the DQI
project take to
‘go-live’?
CLASSIFIED DATA
What % of your
total data were
you able to clean,
i.e. standardize,
classify etc.?
COST
How much did
you spend overall:
Software Costs,
Allied Costs &
Opportunity Costs
IMPLEMENTATION
How easy was the
implementation of
the solution?
TRAINING TIME
How much Time/
Effort in training the
employees on the
new System?
ROI
How much ROI has
the Business
accounted for since
the implementation
of the new project?
Key Factors to measure the Success of the DQI Project

VERDANTIS
CLIENT CASES
The Client – Client has 30 plants located across 5 time zones and 6 countries in the Americas and Europe. They are the largest vertically
integrated cane sugar refiner in the world producing more than six million tons of sugar annually. ERP consolidation followed 3 major M&A
deals.
The Data – Total Lines of Data – 215,000
New Data Added Every Month – 3000 items
ERP in use – SAP ECC 6.0 (2 instances)
Languages in which Data was Required – 3 (English, Spanish, and Portuguese)
Verdantis Benefits – Maintenance of MDM standards globally
Improved material creation across the enterprise
Reduction of inventory
Support at all locations

The Client – a privately-held, family-run American company with a history of innovation and a deeply held belief in doing business with
integrity. EAM implementation for better control across multiple plants.
The Data – Data was cleansed over 5 years ago by a team (Manually)
100,000 SKUs
New Parts added every year ≈ 3000-3500
Systems in use – 2 (Maximo and emPact)
Initial Taxonomy– None
Move to Harmonized Taxonomy - UNSPSC 15.1101
Data Sheet Definition for 1,402 Categories
Verdantis Benefits – The data that was loaded into the new EAM instance was credible and business-ready.
Less production outages on the shop floor.
Fewer instances of duplicate inventory.
Inventory control freed up working capital.
Procurement control drove volume discounts.
VERDANTIS
CLIENT CASES

The Client –a leading global provider of cost-effective and reliable industrial / community scale water treatment systems and services. ERP
consolidation post acquisition of several US Companies.
The Data – The company had 18 different business platforms.
1,300,000 active materials
No corporate categorization for material or part classification
No common protocol for part descriptions or attribute callouts
Duplicates within and across legacy systems
Verdantis Benefits – Harmonization:
Provides consistent and actionable information
Improves spend and supply management
Enables part standardization and lean inventory
Data Governance:
Process standardization drives continuous improvement
Enables elimination of duplicated data entry across applications
Facilitates interfaces between and among applications
Enables centralized maintenance and change management
VERDANTIS
CLIENT CASES

Company Profile of Process Manufacturer
• 8 Billion Annual Revenue
• 1 Billion Annual MRO Spend
• 400 Million Inventory Value
• MRO Material Master Count
• Post Initial Merge of Systems 400,000 Items
REAL-DOLLAR BENEFITS
COMPANY PROFILE
How Material Master impacts the Balance Sheet and the P&L
Harmonization Results
• SKU Count
• Post Cleansing and Enrichment - 340,000 Unique Items
• Raw Count Improvement
• 15% reduction in total SKUs
• 10% identification of duplicate inventory assets

DATA CLEANSING
Benefits of implementing the Data Cleansing Initiative
Annual Inventory Carry cost reductions of 4.4% (Factored cost of capital) as write-down (Positive impact to balance sheet)
• 400 Million in Inventory
• 10% Duplicate Identification
• 40 Million in Duplicate Inventory value
• Write Down of Factored Costs at 4.4% of 40 Million = $1,760,000
Cost Reduction on aggregation of demand across 15% of $1BN in MRO
• 1 Billion in Maintenance, Repair and Operations Material
• 15% Identified through Harmonization as Similar (Across 10% Supplier Base)
• 150 Million addressable spend
• 12.5% reduction in costs through strategic sourcing
• Cost Reduction of 12.5% of $150 Million = $18,000,000
ANNUALIZED NET COST REDUCTIONS FROM : DATA CLEANSING = $19,760,000

DATA GOVERNANCE
Benefits of implementing the Data Governance Initiative
Verdantis Integrity for Reduction of Maverick Spend
• 80% of the 1B Maintenance, Repair and Operation Spending is covered by preferred / pre-negotiated contracts –
$800 Million in Spend
• Data Governance improved Catalogue Quality –Reduced Maverick Spend from 40% to 25%
• 15% gain in compliance = an additional 120 Million in contracted spending
• Average of 16.5% Cost Reduction for pre-negotiated categories
• Cost Reduction of 16.5% of 120 Million = $19,800,000
ANNUALIZED NET COST REDUCTIONS FROM DATA GOVERNANCE = $19,800,000
COMBINED ANNUALIZED NET COST REDUCTIONS: $39,560,000

THE
VERDANTIS
EXPERIENCE Material Master Data Cleansing and Governance
• Over 12 years of Material and Product Master expertise and projects with Global clients delverying unmatched
technology and attention to ROI.
• Experts in Material / Part Classification and Attribution.
• SaaS deployed solutions to more cost-effectively and timely compliment major ERP/EAM and Legacy systems.
• The most comprehensive suite for collaborative and automated high speed batch material data cleansing solutions –
Verdantis Harmonize.
• Options for On-going new Item create and data governance with embedded classification and attribution models –
Verdantis Integrity.
Note: Integrity leverages classification model, values, spec sheets, abbreviations, UOM and more from Harmonize

THANK YOU!
www.Verdantis.com
CONTACT US:
103 Carnegie Center, Suite 201
Princeton, NJ 08540
(+1) 866 987 4463 | info@verdantis.com

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