Maximize ROI with Material Master Standardization and Cataloguing
Material Master ROI is about unlocking value hidden in messy, inconsistent data. When cataloguing and standardization are done right, enterprises see measurable impact on procurement, compliance, and operational efficiency. In heavy industries, as much as 20–30% of MRO inventory value is tied up in duplicate, incomplete, or misclassified material records. For decision-makers in sectors like Oil & Gas, Utilities, Manufacturing, and EPC, this problem is not a minor nuisance; it’s a direct hit to working capital, compliance, and supply chain agility.
Most organizations don’t even see the leak. Poor material master data sits buried inside ERP systems, inflating costs silently. This article explains how enterprises across India, the GCC, the Far East, and the US can uncover the hidden ROI of material master cataloguing and standardization, and how to capture it sustainably.
Bad Material Masters Leads to Hidden Costs
Material master data is the backbone of procurement, maintenance, and inventory planning. Yet in most organizations, it’s riddled with problems:
- Duplicate items across plants and ERPs.
- Inconsistent descriptions that make procurement slow and error-prone.
- Ghost inventory in warehouses. Materials that exist in the system but are not on the shelves.
- Siloed systems after mergers or regional expansions.
- India: large vendor ecosystems and legacy ERPs make duplication and misclassification rampant.
- GCC: complex oil & gas supply chains raise the stakes on compliance and safety-critical spares.
- Far East: high-volume manufacturing means SKU sprawl is the norm.
- US: frequent mergers and acquisitions create fragmented, non-standardized material masters.
The cost impact is significant. Companies lose supplier leverage, tie up millions in working capital, and suffer longer procurement cycles, all because the foundation of their ERP is unstable.
ROI Proof:
The financial logic of material master standardization is clear.
ROI levers include:
- Inventory reduction: 10–20% less capital tied up in stock.
- Procurement efficiency: cycle times cut by 30–40%.
- Supplier leverage: 5–15% better pricing with consolidated spend.
- Compliance savings: fewer audit penalties and safety risks.
Case Study
- Steel manufacturer in India removed 25% duplicate records, unlocking savings of over $2 million in procurement and storage costs.
- GCC oil & gas enterprise standardized 100,000 SKUs, cutting procurement lead times by 40% and reducing inventory holding costs by 20%.
Ready to see the ROI of clean, standardized material data? Prosol, CODASOL’s cloud-based MDM and governance platform, is now available directly on the SAP Store.
Where Bad Data Costs You vs Where Standardization Pays Back
| Area of Impact | Bad Material Masters | Standardized Masters |
|---|---|---|
| Inventory value | Bloated by duplicates | Lean, optimized |
| Procurement cycle | 10–15 days | 2–3 days |
| Supplier leverage | Weak | Strong |
| Compliance | Frequent errors | Near zero |
The Playbook (Steps to Unlock Material Master ROI)
Enterprises that succeed in capturing ROI follow a disciplined process:
- Assess the current data state.
- Cleanse duplicates and incomplete records.
- Standardize naming conventions and taxonomies.
- Enrich records with specifications, attributes, and classifications.
- Govern the data to keep it clean.
- Audit regularly with physical verification.
Where CODASOL fits in
At this stage, technology matters. CODASOL provides a suite designed specifically for asset-intensive industries:
- PROSOL: the cloud-based governance platform that integrates with SAP, Oracle, Maximo, and others to sustain the ROI.
- Prosol Swift: Off-the-shelf, collaborative, customizable platform for cleansing and standardization.
- i-Stock: ensures physical verification and conditional auditing to eliminate ghost inventory.
- Infony: ML-powered data extraction and health checks to assess the starting point.
- ProPedia: AI-powered material catalogue library that eliminates duplication with intelligent classification.
Before vs After:
| Metric | Before Standardization | After CODASOL Solutions |
|---|---|---|
| Duplicate items | 20–30% | <2% |
| Procurement cycle time | 10–15 days | 2–3 days |
| Inventory holding cost | 15–20% | 8–10% |
| Compliance errors | Frequent | Rare |
| Supplier leverage | Weak | Strong |
These are not abstract improvements—they translate directly into working capital released, faster time-to-market, and stronger supplier negotiations.
Challenges & How to Overcome Them
No transformation is free of resistance. Common hurdles include:
- Change resistance from teams used to legacy descriptions.
- Taxonomy mismatches across plants or regions.
- ERP silos post-acquisition.
- Data upkeep once the initial cleanse is done.
How CODASOL addresses them
- PROSOL ensures governance, so the ROI is not lost six months later.
- Prosol Swift enables collaborative enrichment, reducing pushback.
- i-Stock bridges the gap between ERP and warehouse.
- ProPedia provides a universal catalogue library for consistent taxonomy.
Enterprises across India, GCC, the Far East, and the US are already realizing 30–40% efficiency gains through material master standardization. What are you waiting for?
Conclusion
Material Master ROI is hard cash savings and stronger operational control. By following a structured playbook and using the right tools, enterprises can eliminate duplication, speed up procurement, and unlock millions in value.
CODASOL provides the complete ecosystem: Infony, Prosol Swift, ProPedia, i-Stock, and PROSOL to help asset-intensive industries capture and sustain this ROI across global operations.
Frequently Asked Questions
1. What is material master data in ERP?
It’s the central database of material-related information, like descriptions, codes, and specifications to drive procurement, inventory, and maintenance.
2. How does material master standardization improve ROI?
It eliminates duplicates, speeds procurement, reduces inventory, and then improves supplier leverage, directly lowering costs.
3. How quickly can you realize the ROI?
Most enterprises see measurable savings within 6–12 months of a standardization project.
4. Which CODASOL product should I start with?
Begin with Infony for data assessment, then progress to Prosol Swift for cleansing and ProPedia for enrichment.
5 Can CODASOL integrate with SAP, Oracle, and Maximo?
Yes, PROSOL is designed to integrate seamlessly with major ERP systems to sustain governance and ROI.
