Verdantis Business Case

1
Verdantis Business Case

• You wont 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
• Dont 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 PL 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 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

9
Verdantis Automated Material MDM Solution Suite
GET IT CLEAN
KEEP IT CLEAN
VERDANTIS HARMONIZE
VERDANTIS INTEGRITY
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
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
12
Location 103 Carnegie Center, Suite 300,
Princeton, NJ 08540 Telephone 1 (866)
987-4463 (USA) Email info_at_verdantis.com
Get In Touch
www.verdantis.com