Why Ignoring SAP Master Data for Indirect Materials Could Be Costing You Millions
If you’re running SAP and still facing procurement bottlenecks, finance reporting issues, or poor system adoption, the root cause might not be your ERP. It’s your Master Data.
Poor material master data silently erodes performance across Procurement, Finance, IT, and Operations, leading to delays, excess costs, and compliance risks. And if any of this sounds familiar, your data might be toxic.
Does This Sound Familiar?
Procurement Challenges:
- “We keep running out of critical spares.”
- “We still use free-text purchases in local languages.”
- “Why do we keep buying duplicates of what we already have?”
- “Spend analysis? It’s a black hole.”
- “We have materials in the catalog, but no one uses them.”
Finance Frustrations:
- “Was this CAPEX or OPEX? No one’s sure.”
- “SOX compliance is painful, especially SOX 404.”
- “Import/export codes? Wrong half the time.”
- “Accounts Payable constantly reworks mismatches.”
- “Closing books takes ages, Intrastat and VAT nightmares.”
IT Concerns:
- “Users don’t trust our data. Adoption is poor.”
- “Too many interfaces. Too much customization.”
- “We outsourced cleansing… but no one owns the data now.”
- “MDM tools are expensive and don’t complement SAP.”
- “Our go-live is delayed by 9 months, just for data cleanup.”
What’s Really Going On?
Behind these frustrations lies a simple truth: Bad data impacts every department.
| Department | Pain Points |
|---|---|
| Procurement | Stock-outs, free-text orders, misclassified materials |
| Finance | Misreported spend, SOX non-compliance, mismatched POs |
| IT | Project delays, poor adoption, costly customizations |
| Operations | Incorrect parts, underused catalogs, receiving errors |
You Don’t Need More Tools. You Need Smarter Data.
PROSOL, CODASOL’s AI/ML-driven Master Data Management platform, is the solution for you.
We go beyond just cleansing. We transform your material data landscape by:
- Deduplicating and standardizing materials across plants and languages
- Auto-classifying using global and internal taxonomies (UNSPSC, eCl@ss, ISO, ECCMA, Intrastat)
- Seamlessly integrating with SAP, Oracle, Maximo, and other ERPs
- Enriching records with manufacturer catalogs and vendor master data
- Validating at source with real-time checks and governance rules
- Empowering teams across procurement, finance, and operations
Before & After PROSOL
| Before | After |
|---|---|
| Incomplete, duplicate data | One clean, governed material master |
| Free-text entries | Structured, catalog-based purchasing |
| No insight into spend | Accurate category-level spend visibility |
| SOX reporting challenges | Automated compliance-ready data |
| 9-month project delays | On-time go-live with clean, trusted data |
See how PROSOL delivers a governed, compliant material master that scales with your business
From One-Time Fixes to Always-On Governance
Unlike generic MDM tools or one-time cleansing projects, PROSOL ensures continuous data health through:
- AI/ML-powered suggestions for material creation and updates
- Role-based governance workflows for control and accountability
- Real-time enrichment from internal and external sources
- Built-in compliance validations for spend, procurement, and finance
Business Impact You Can Measure
With CODASOL’s PROSOL, clients typically experience:
- 30% reduction in working capital tied up in inventory
- 40% improvement in purchase order accuracy
- 75% less effort in maintaining the material master
- 100% confidence in data-driven decisions
These are not theoretical projections, but proven results from leading manufacturers, energy firms, and infrastructure giants.
Are You Happy with All Your Material Types?
Most organizations only clean the data closest to the customer, such as finished goods, packaging, and raw materials.
These are easy wins.
What about the other 90%?
The Hidden Goldmine: Indirect Materials
Indirect materials like MRO spares, office supplies, and production consumables are often dumped into a vague “Other” category.
They are poorly described, frequently duplicated, and inaccurately classified. The result?
- Frequent stock-outs and over-purchasing
- Bloated inventory costs
- Compromised financial reports
- Missed opportunities for supplier rationalization
Still focusing only on finished goods?
Discover how indirect materials hold the real savings potential, and how CODASOL helps you unlock it fast.
The Data Opportunity Curve
In the early stages of data cleansing, direct materials offer high returns. But once the top 3,000 SKUs are cleaned, many organizations stop.
That’s a mistake.
The area under the curve, the long tail of indirect materials, holds enormous, untapped value. You’re sitting on a goldmine hidden behind messy data.
From Complex Data to Complete Control
CODASOL’s solution is tailor-made for SAP and engineered to manage indirect materials in asset-heavy industries.
Core Capabilities (No Custom Code Required):
- Standardized material descriptions
- AI-powered classification aligned with ISO, UNSPSC, ECCMA, eCl@ss, and Intrastat
- Intelligent de-duplication using fuzzy logic and clustering
- Spend classification mapped to SAP fields
- SAP-native integration via ABAP, API, LSMW
- Zero custom development needed
- 100% SAP-compliant, scalable, and audit-ready
Tangible Business Outcomes
| Impact Area | Typical Savings | Potential Upside |
|---|---|---|
| Inventory Cost Reduction | 8–12% | Up to 15% |
| Procurement Cost Reduction | 10–15% | Up to 20% |
| Equipment Downtime Reduction | 2–5% | Up to 10% |
| Supply Chain & Storage Costs | 3–5% | Up to 8% |
| Worker Productivity Gains | 5% | — |
| Accounting Compliance Risk | 3% | — |
Quick Wins. Long-Term Value.
CODASOL helps you unlock:
- Lower working capital via optimized inventory
- Improved material sharing across plants
- Reduction in maverick spend and stock-outs
- Better supplier visibility and rationalization
- Faster goods receipt and invoice processing
- Seamless catalog access and faster material search
- Elimination of dormant and obsolete stock
- Smarter replenishment decisions
- Easier SOX and INTRASTAT compliance
Don’t Stop at the Easy Wins
Cleaning finished products is just the beginning. The real value lies in the overlooked, unstructured world of indirect materials.
This is where CODASOL gives you an edge with intelligent data, trusted systems, and operational excellence.
Ready to Transform Your SAP Master Data?
Let us show you what a fully classified, intelligently governed material master looks like across your enterprise.
- No new tools required
- No custom development
- Rapid time to value
Say hello to clean, compliant, cost-effective Master Data at scale.
Frequently Asked Questions
1. What types of materials are most often overlooked in data cleansing?
Indirect materials like MRO spares, office supplies, and consumables are commonly neglected but have huge optimization potential.
2. Can CODASOL’s PROSOL integrate with non-SAP systems?
Yes, PROSOL integrates with Oracle, Maximo, and other major ERPs, in addition to SAP.
3. How long does implementation typically take?
PROSOL offers rapid implementation, with measurable results typically seen within 90 days.
4. What taxonomies does PROSOL support?
PROSOL supports global and custom taxonomies including UNSPSC, eCl@ss, ECCMA, and Intrastat.
5. Is custom development required to use PROSOL with SAP?
No. PROSOL is fully SAP-compliant and operates via native ABAPs, APIs, and LSMW integrations.
