This week on our weekly vlog series Exceedra Byte, Brian Kolubinskyj, Exceedra Senior Director of Sales and Gabriel Sawhney, Exceedra Sales Manager demonstrate the importance of having clean master data before implementing a TPM solution. Find out what the components of master data are and what makes it clean.
Brian: Gabe what comes to your head when someone mentions master data and all the complexity it involves?
Gabriel: You know that scene in ‘The Matrix’ where they are looking at a computer screen and it’s all these green numbers and letters that don’t really make any sense. That’s what I think about.
Brian: I like to think of it as Ralphie from ‘A Christmas Story’ when he wanted so bad to have that secret decoder ring and then all it said was “drink your Ovaltine”. I like to think of master data being that secret decoder ring that can give all the directions that a TPM system needs to know such as starting pricing point, all the customers, and all the things flowing on the screen and getting them to the proper areas.
When we talk about master data, what are the components of it and what makes it clean?
Gabriel: One of the most important things is understanding the price lists. You are selling to different customers, and you need to have all your different price lists in there. It is important to understand what your price to the customer is and what the price to the retailers is and be able to capture all these different price lists in the system.
Brian: You are right. Even beyond that, I think you can even have not only your direct price but also your indirect price where distributors are selling to retailers as well. Having that retail price point as well so you can understand the margins on a customer P&L to understand what kind of value and ROI you are giving not only to yourself but to your end retailers as well.
I think the next component of master data is bill of materials (BOM). When you are planning in a TPM solution, we let you plan at any level. You can be planning at the individual unit but most likely you are going to be planning at what you are selling. And most of the time you are selling cases, so we need to know what is making up that case, how many are in that case. When you say one unit is one case, we need to know everything that is in there, all the costs associated with it and then even bring it up to the next level.
Gabriel: I hear all the time customers asking if they can plan for a promotion they are running with shippers and those may have different items. For us to understand what is in that actual shipper, we need to have all the materials so we can map that back to your individual units.
Brian: Again, the power and the value of clean master data. I like to think about hierarchies as well. When you have a TPM system, if it is not built to align to the way you are doing your planning and to align back to your ERP, it is not going to work well. So having both those customers and product hierarchies built in a way that aligns to how you are planning and how you are settling against those promotions is really important. And that is work you have to do ahead of time.
I know you have been on calls with me where we would talk to people and ask them about the state of their current master data, how is their ERP and structure. And more than once me and Gabe have been horrible salespeople and said “TPM is just not right for you at this time”.
Gabriel: And I think that is important – “just not right for you at this time”. Everybody is going to get value out of it. We want to make sure people are ready for that. You need to have that clean master data so that they are ready to get value out of the system.
Brian: You are going to get the most value out of a TPM solution when your master data is clean, your processes are ready to go, and you can go ahead and feed that and then run from there.
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