Verdantis Business Case of Master Data Management

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

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 1

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

3. MDM Impact on Production Oriented Processes 3

4. MDM Impact on ERP ROI 4

5. Balance Sheet and P&L Impacts of the Material Master 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 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 5

6. 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 Material MDM – Hard Dollar Benefits of Harmonize® 6

7. 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 Material MDM – Hard Dollar Benefits of Integrity® 7

8. 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 solutions under 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 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. 8

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

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 10

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

12. Get In Touch Location: 103 Carnegie Center, Suite 300, Princeton, NJ 08540 Telephone: [phone] (USA) Email: [email protected] www.verdantis.com Copyright © 2024. All Rights Reserved.