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Verdantis Business Case

Master Data Management Impact on Production Oriented Processes, ROI and more..<br>

Verdantis
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Verdantis Business Case

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  1. Verdantis Business Case • You won’t realize the full value of your business systems or reach full potential of your analytics without MDM • The ROI of MDM projects is huge • Status quo is the highest cost for your current problems • Start with a business case, then iterate/integrate • Your competitors are moving forward, so stay competitive • A major system implementation is an excellent catalyst • Specifications and cleansing take a long time, so start early • Leverage everything you can; use services and standards • Have an experienced third party help you learn how to fish • Don’t be afraid of new/additional technologies

  2. Business Impacts of Poor Material / Part Master Data Research Analyst View – Productivity • Productivity Impact • New Product Development Impact • Customer Satisfaction (Revenue) Impact Balance Sheet and Income Statement Impact • Case Study • Asset Optimization • Procurement Optimization Product or Service Flow – Outage Impact • True Costs of Down Time • Monetary Impact of Down Time

  3. MDM Impact on Production Oriented Processes

  4. MDM Impact on ERP ROI

  5. Balance Sheet and P&L Impacts of theMaterial Master Process Manufacturer or Services Provider • 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 Verdantis Harmonize® & Integrity® • 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

  6. Material MDM – Hard Dollar Benefits of Harmonize® • 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 of $19,760,000

  7. Material MDM – Hard Dollar Benefits of Integrity® • 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 improves 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 15% of $800 Million = $19,800,000 • Combined Annualized Net Cost Reductions of $39,560,000

  8. Verdantis, material master data cleansing and governance • Artificial Intelligence: Suite • AutoClass, AutoSpec, AutoNorm, AutoCrawl, AutoDups. • Repeatable processes with 2 decades training across over 100 M MRO and 4 Trillion Lines of Direct Transactional Spend • Harmonize: Self-service, Verdantis, Hyrbid • High speed repeatable processing by custom batches by any definition such as category, supplier, location etc. • Collaborative workflow to bring right resources into project at just the right time by batch. • Over 3700 Verdantis Data Template Spec Sheets base for MRO. • Verdantis brings over 2 decades of Material and Supplier Master expertise and projects with Global clients to the market with unmatched technology and attention to ROI. • Experts in Spend 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 solutionsunder Harmonize brand. • Options for On-going new Item create and governance with embedded classification and attribution models under Integrity brand. • Integrity leverages classification model, values, spec sheets, abbreviations, UOM and more from Harmonize

  9. Verdantis Automated Material MDM Solution Suite GET IT CLEAN KEEP IT CLEAN VERDANTIS INTEGRITY VERDANTIS HARMONIZE MDM/MDG application to prevent duplication, and ensure on-going data integrity Fully automated solution to cleanse and enrich historical master data Offered historically as A turn-key service Now also offered as Licensed SaaS Platform Automated solution for real-time on-going data integrity Automated solution for historical master data harmonization AI Technology AI-based Software Tools AutoClass AutoSpec AutoNorm AutoCrawl Verdantis Knowledgebase Dynamic content Repository VERDANTIS AUTOMATED MDM SOLUTION SUITE AutoClass AutoSpec AutoNorm AutoCrawl Intelligent web spidering tool for Data harmonization Classification into pre-determined codes Attribute extraction & de-duplication software for Material master Normalization & validation of MFG, MPN and UOM Artificial Intelligence forms the bedrock of Verdantis’ automated MDM solution suite

  10. We can help: Verdantis Free POC Evaluations • Determine POC Objectives and Scope • # of Item Masters and Source Systems • Select Data Sample • Language requirements: Free English • Select Taxonomy & Attribute Templates • Verdantis Processes Data • Fully Classify POC data set • Fully Cleanse a subset of data • Non Source Enrich a subset of data • Flag duplicates for processed Items • On-site Review of Deliverables • Data Analysis and Output • Draft Budget Proposal • Business Case Recommendations • Learn: • Quality of Data • Compatibility to automated approach • Potential duplicate levels • Estimated budget • Recommended Scope & Resources

  11. Quality Master Data to Improve your Business Performance CLEAN IT WITH HARMONIZE SUPPLIER HARMONIZE CUSTOMER HARMONIZE PRODUCT HARMONIZE MATERIAL HARMONIZE PRODUCT INTEGRITY (PIM) CUSTOMER INTEGRITY (CIM) MATERIAL INTEGRITY (MI) SUPPLIER INTEGRITY (SIM) KEEP IT CLEAN WITH INTEGRITY

  12. Copyright © 2024. All Rights Reserved. Location: 103 Carnegie Center, Suite 300, Princeton, NJ 08540 Telephone: +1 (866) 987-4463 (USA) Email: info@verdantis.com Get In Touch www.verdantis.com

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