{"id":24207,"date":"2024-12-13T15:54:40","date_gmt":"2024-12-13T10:24:40","guid":{"rendered":"https:\/\/www.verdantis.com\/?p=24207"},"modified":"2026-01-12T15:47:09","modified_gmt":"2026-01-12T10:17:09","slug":"product-master-data-management","status":"publish","type":"post","link":"https:\/\/www.verdantis.com\/product-master-data-management\/","title":{"rendered":"Product Master Data Management"},"content":{"rendered":"\t\t
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What is Product Master Data?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Put Simply, a Product Master Data is a collection of all product-related attributes and information that rests in the master database in any given ERP system.<\/p>

To ensure a unified and accurate view, MDM (Master Data Management) data integration plays a crucial role by streamlining the flow of data across various systems, ensuring consistency and reliability in product information.<\/p>

A product master helps provide a unified view of all product-related information and ensures consistent information across CRM (Customer Relationship Management), ERP (Enterprise Resource Planning) and PIM (Product Information Management) systems in the organization.<\/span><\/p>

A product master combines data from the item master and material master to create a comprehensive product profile. While the product master covers product attributes and specifications, the item master<\/a> delves into specific inventory details such as part numbers and stock levels, and the material master<\/a> details the raw materials and components used in production.\u00a0<\/p>

Together, these elements form an all-encompassing view of product and material information, ensuring that enterprise master data is accurately managed across all relevant systems. For more information on strategies for ERP data management, refer to the article here.<\/a><\/p>

As organizations scaled, a high volume of product data was generated across different departments and silos. Quite often, gaps in various processes and an absence of data management and governance practices led to “dilution” or “contamination” of this product data.\u00a0<\/span><\/p>

Thus, the need for a centrally managed product master database became immediately apparent among leading enterprises worldwide and major ERPs began developing out of the box solutions for PMDM within their offerings.<\/span><\/p>

For example; SAP launched\u00a0<\/span>PMDM, a set of features that can help with product development and change processes, and similarly other vendors that launched their MDM tools<\/a> to help businesses implement the master data management solutions, including product master data as one of the data domains. It helps centrally manage and govern product-related data and integrate the same across internal and external systems\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Below are some of our case studies where we have helped clients from different industries to establish a strong master data management process.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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<\/div>
Elevating Operational Performance with Enhanced Data Quality in Electric Utilities<\/div>
Free Download <\/div><\/div><\/a><\/div>
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SAP ERP Consolidation for a Fortune 500 Forest Products Company<\/div>
Free Download<\/div><\/div><\/a><\/div>\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t
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What Fields are Available in a Product Master?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Here are a few examples of fields made available in a Product Master Data instance in any ERP within a company. \u00a0\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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These are a few standard examples of product-related data-points that are typically available. These can vary based on the ERP, company industry.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Why Do Companies Maintain One?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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For smaller operations involving lean teams and fewer product lines, maintaining product information centrally is not much of a challenge as most teams work in a fairly cohesive manner and product information is stored in a relatively simpler manner.\u00a0<\/p>

However, things get far more complex with enterprise companies with over $100 Million in yearly revenues. In these situations, the management of data across various platforms\u2014like CRM systems, ERPs, and external databases\u2014becomes even more complex. <\/span><\/p>

Inconsistencies or mismatches in the availability of data can hamper key processes and lead to inefficiencies in supply chain and go-to-market functions. Cloud Master Data Management<\/a> (MDM) is where such issues are resolved. <\/span><\/p>

With cloud MDM solutions integrated with ERP systems, organizations can have real-time access to accurate, consistent, and single-source product data. <\/span>C<\/span>loud-based MDM offers centralized control that brings multiple data silos together, enabling enterprises to manage data integrity with ease, enhance collaboration between teams, and take data-driven decisions. <\/span><\/p>

In industries with high distribution, where an extensive product range is concerned, a cloud-based PMDM solution offers effortless data governance, with enhanced control of product information, streamlined inventory management, and optimal supply chain processes, all the while lowering costs and risks.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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An oil and gas firm was experiencing inconsistent product information for key items such as drilling fluids, pipelines, and chemicals. For instance, pipeline materials were recorded with varying grades and specifications, like API 5L Grade B<\/em> and API 5L X65,<\/em> in procurement, inventory, and maintenance systems.<\/p>

In addition, the chemical data of the company was disconnected, and different viscosity levels were recorded for drilling fluids, while safety data sheets (SDS) of chemicals such as Xylene and Methanol<\/em> were not consistent. This resulted in procurement delays, project performance, and regulatory compliance reporting.<\/p>

The company addressed these challenges by introducing a Product Master Data Management (PMDM) solution. This consolidated all product information, normalizing important characteristics like pipe size, thickness, material type, and chemical content.<\/p>

Every product was assigned a distinct product code, and all associated data\u2014like pressure ratings, viscosity ranges, and safety handling\u2014was synchronized across systems. The PMDM solution integrated with the ERP and procurement systems, providing real-time updates, preventing duplicate entry, and imposing data validation rules.<\/p>

Through this, the company experienced substantial improvements in procurement accuracy, project scheduling, and regulatory compliance (e.g., OSHA, EPA). The combined product data also allowed for improved pipeline maintenance scheduling, minimized safety hazards, and ensured that drilling fluids had defined viscosity for maximum performance during operations.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Challenges in Product Data Management<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Most companies aren’t able to warehouse and manage product data in a central repository due to a whole range of issues, which underscores the importance of PMDM. The reasons for that are detailed below.<\/p>

Lack of Data Standardization<\/b>: Complex organizations that work in silos typically use varying naming conventions, Units of Measure and formats for the same product, this can make centralization of the data quite difficult<\/span><\/p>

Data Governance & Ownership<\/b>: Every data record that is updated into the system should ideally be vetted for duplicates, mandatory data points, validation systems and should have an approval system in place that clearly charts out accountability and ownership to make the most out of the product master. – these processes and systems are non-existent in companies who haven’t thought through their product master in detail earlier\u00a0\u00a0<\/span><\/p>

Technical Complexities<\/b>: We’ve mentioned earlier that maintaining data across systems for one unified-view is one of the main goals of PMDM. However, this can be technically complex to implement requiring cross-platform expertise.\u00a0<\/span><\/p>

Scalability Issues<\/b>: It’s relatively straightforward to maintain a product master for a company with finite use-cases. However, as the size and complexity of the data set increases, the effort towards governance and management of the data is simply not commensurate, leading to challenges with scalability.<\/span><\/p>

Multiple Product Variants: <\/strong>Large-scale enterprises can have thousands of products that have numerous variants (e.g., size, color, pack). It may be a bit difficult to manage these variants and ensure proper data is tied up with every variant.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Book a Consultation with our Product Master Professional<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\tProof of Concept on your Own Sample Data<\/span>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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