10 Reasons Why Data Governance Is Important to Supply Chain Management

December 3, 2015 Brad Helman

Image_Delivery Trucks for Supply Chain Management

You may be asking yourself, “Isn’t data governance important in all aspects of the business?” Well yes it is, but here I’ll touch upon why I think it is crucial for ensuring an error free and quality controlled Supply Chain Management. Particularly, this surge of data governance opportunities comes from the need for organizations to continue to compete in a global environment and the ability to quickly address legal and regulatory compliance and demands while of course, avoiding business process interruptions at all cost.

Why would data governance for Supply Chain Management differ from any other line of business? Lets start with the speed at which information is shared. Goods and services are consistently on the move, meaning large quantities of materials, including data, is being exchanged with a majority of supply chain data generated outside an enterprise. If the proper data governance business processes and tools are not effectively implemented in your IT environment, any slight error can cause millions in loss revenue and most importantly, time.

Here are 10 reasons why data governance is so important for your Supply Chain Management:

  1. Cost Savings – It’s the main goal of every organization. Most supply chain teams will have an immediate budgetary strain, but the payoff begins to grow as time quickly passes.
  2. Define Measurable Metrics and Milestones Early – Before work initiates on a given task or strategy, get ahead and understand the “current health” of your data behind that objective as well as your “target”. This will allow you to get a baseline of your effectiveness.  
  3. Do More With Less – Begin to liberate repetitive tasks and start to unlock employee resource potential, promoting employee growth and process ownership across all stages of your data journey.
  4. Process Simplification – Gain more automation through a centralized data management for your external work away from your production system.
  5. Purposeful Cleansing – Enable your team to monitor trends and progress to ensure action upon directive. Allow them to re-evaluate quality based on trending data and feasibility of attainable goals.
  6. New Toolsets – With governance comes new tools, and an organization is sure to generate more interest from its users by making system customizations that are relevant and easily accessible for their needs.
  7. Streamlined Data – Focus your attention on relevant information impacting matters important to your business. Consolidate records and help to determine utilization and finer control over duplicate and inactive or under-utilized data.
  8. Information Through Discovery – When proactive approach is taken to close gaps in business processes, many new cleansing opportunities or process improvements are discovered.
  9. Clarity Through Transparent Data – General availability of reports showing the quantity of records, rate of creation of new records and utilization across related business objects of the current data records, allows department managers to truly understand their business.
  10. Identify Risks and Policy Violations – Define the scope of criteria to find data points that fall outside of “normal business activity”. With governance, you can add controls and checks to stop unwanted behavior.

Maintain the focus and consistency of these efforts by conducting checkpoints to review the progress and any obstacles preventing the completion of the program goals. Along the way refine any policy or procedures that are ineffective at reaching the targeted goals of Supply Chain.  Consideration of these fundamentals and defining your business goals and timelines will ensure that your team is well equipped to handle the rapid changing environment of your Supply Chain. 

About the Author

Brad Helman

Brad Helman is a BackOffice Certified Consultant in Data Migration and Data Governance with 5 years of SAP experience in the Vendor, Material, Purchasing modules. He has excelled in the business functional web application development to provide out-of-the-box solutions to customers facing challenges unique to their respective industries. This broad range of experience has allowed Brad to develop strong consulting, technical, and managerial skills.

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