This company is highly motivated to seek out real cost savings in procurement and supply chain. They are also highly driven to implement their plans quickly (within weeks) while management, data and systems are still aligned for change.
With a polluted SAP ERP system inherited from different mines and mine owners over the years, the team was mindful that there were good opportunities in a material master “clean up” as well as a “keep it clean” process. IT tools were needed for this, but management here had the foresight to understand that the typical IT approach may not be quickest or best in this case. That getting fully configured lean practices in an integrated Master Data Governance MDG process fast, would be unlikely with the typical approach of “configure big vendor vanilla MDG system using offshore team”.
The speed of this project also meant that the pre-configured Refresh software suite was an advantage: off-the-shelf, ready to switch on inside SAP in the first week of the project and customized on the go so that all users can follow a proven Rich MDG for SAP process in a matter of weeks. The first phase of clean-up was also delivered quickly - a week after kick-off - with the Refresh algorithmic de-duplication runs producing significant quick wins with some 4% of material masters identified duplicated with stock and active re-order points.
All new materials will now be created directly in SAP with Refresh Server in the background, enriching the data fields live and as filled in by the requestors, auto-filling Descriptions, Material Groups and Spend Classes. At the same time, any new items will also be duplicate checked against all existing and previous SAP stocks. This will prevent unnecessary or off-contract purchases, optimizing stock levels, vendor price parity and working capital for the long run.