If Your Supply Chain Is Struggling, Start with Your Material Master Data

You’re chasing delayed deliveries, dealing with wrong parts being shipped, and overstocking materials you already have. You may think it’s a process issue, but often, the real culprit is bad data. Fix inaccurate material master data in your ERP system.

In this blog, we’ll explore how inaccurate data disrupts supply chain performance, how to identify it, and most importantly, how to fix it.

Why Fixing Material Master Data Should Be a Top Priority

Material master data forms the backbone of any ERP system. It informs procurement, inventory, maintenance, production, and even finance.

When this data is flawed:

• Procurement orders the wrong parts
• Inventory levels are misleading
• Duplicate materials increase working capital
• Maintenance suffers from delays

In high-stakes industries like oil & gas, aviation, or manufacturing, this means millions lost annually.

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The Root Causes of Inaccurate Material Master Data

Here are the most common sources of bad data in your ERP:

1. Manual data entry errors
2. Duplicate records from lack of naming conventions
3. Obsolete or outdated material descriptions
4. Inconsistent units of measure
5. Lack of ownership or data governance

Example: A plant in Abu Dhabi discovered that 14% of its inventory was duplicated under different names and units. After a cleanup, it saved over $1.2M in procurement costs.

Step-by-Step Guide to Fix Inaccurate Material Master Data

1. Conduct a Data Audit

Start with a health check:

• How many material records do you have?
• What percentage are duplicated?
• Are naming conventions consistent?
• Are attributes like manufacturer name, unit of measure, and specs standardized?

Pro Tip: Use automated tools or consult a Master Data Management (MDM) provider for faster auditing.

2. Define a Standardized Naming Convention

Create templates for naming materials based on category (e.g., mechanical parts vs. electrical components). Ensure it includes:

• Noun-modifier structure
• Manufacturer details
• Key specs (size, capacity, pressure, etc.)

Sample Naming Convention for Valves:

Noun	Modifier	Spec	Unit	Manufacturer
Valve	Gate	4-inch, 300 PSI	EA	Cameron

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3. Eliminate Duplicates

Use data cleansing tools or MDM platforms to:

• Merge duplicate entries
• Remove obsolete records
• Map legacy codes to standard materials

4. Standardize Attributes

Create mandatory fields for:

• Part numbers
• Unit of measure
• Manufacturer name
• Equipment compatibility

This ensures consistency across all departments.

5. Assign Data Ownership

Without accountability, bad data creeps back in.

• Assign roles for data stewards
• Set up approval workflows
• Define access controls for editing material records

6. Integrate with Procurement and Maintenance

Make sure your material master is aligned with:

• Procurement systems to prevent wrong purchases
• Maintenance systems (like Maximo or SAP PM) to ensure accurate spare part planning

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7. Implement Ongoing Data Governance

One-time cleanups are not enough. Set up a governance strategy with:

• Routine audits
• Approval-based changes
• Periodic deduplication

Results You Can Expect

Impact Area	Before Fix	After Fix
Procurement	Frequent wrong orders	90% accuracy in orders
Inventory	Overstocking & stockouts	20% optimized inventory
Finance	Unexplained cost variances	Reduced maverick spending
Maintenance	Delayed spares availability	Improved uptime by 30%

When to Seek External Help

If your ERP contains over 10,000+ materials, or if multiple plants/regions use different standards, fixing data internally can be overwhelming.

An external MDM provider can:

• Accelerate cleanup using AI/ML tools
• Ensure compliance with ISO standards
• Deliver a “golden record” for each item

FAQs

1. How often should I clean material master data?

Ideally, perform a full audit annually, with quarterly checks for new entries.

2. Can inaccurate material master data affect compliance?

Absolutely. Regulatory audits often fail due to incorrect specifications or missing traceability in material records.

3. What is a “golden record”?

It’s the most complete, accurate, and up-to-date version of a material, deduplicated and enriched with correct attributes.

4. How long does a full cleanup take?

It depends on volume, but for a mid-sized manufacturer (50,000 materials), a full cleanup takes 8–12 weeks with the right tools.

5. Can this help reduce procurement costs?

Yes, by eliminating duplicates and ensuring correct specs, procurement costs can drop by up to 20%.

How to Eliminate Duplicate Materials in Your Material Master

Fixing inaccurate material master data isn’t just about good housekeeping; it’s about unlocking operational excellence across your supply chain. Don’t let bad data cost you big.