So you’re probably wondering – How is Vendor Master Data Management like a children’s game?
Do you remember playing the “Telephone” as a child? The message being passed along gets changed every time and by the time the last person receives the message, it has completely changed and everyone laughs at the last person who really has no clue what they were supposed to say!
Communicating and exchanging information within a business without a vendor master data management process reminds me of that childhood game. Between all the different locations, divisions, and departments within your organization information can easily be lost or not passed along. Have you ever found yourself in this position? Have you ever tried to communicate information and you were not successful because you didn’t have direct contact with the person/department you were trying to reach? And let me guess… The results weren’t good – except in this context you only wish the worst that could happen was some laughter from the neighborhood kids.
Not having a solid vendor master data management process can really hinder your business’s ability to achieve their optimal results! Businesses have found success in implementing a vendor master data management process. It goes without saying that a strong process decreases the amount of inaccurate and inconsistent information, but also increases the quality of supplier data. This foundation of data supports the entire organization and drives ROI across all initiatives. Everything is dependent on data.
What can Vendor Master Data Management do for your Organization?
Employing a strong process is essential if you want your business to run smoothly. Vendor master data management can ensure that your business:
- has up-to-date, accurate information at all times
- does not suffer from duplicate accounts or payments
- has a decreased risk of fraud by making sure the vendor data is clean
- gathers missing data or updates old data and inactive accounts
- has a better understanding of what suppliers want and need
- fully utilizes the process and works in parallel with all other locations, divisions, and departments of the business
These are just a few of the benefits that a good vendor master data management process can offer, and unlike being the last person in the group getting the wrong message during a game of “Telephone” having inaccurate information as a business isn’t a laughing matter. Vendor master data management for your business shouldn’t be optional, without a good vendor master data management process your business could be in trouble.
Understanding how vendor master data management works and what ways you can improve your process can help your business tremendously.