Explore how SAP processes determine the quality of your data and the steps any company can take to transform its data into a gold mine of information

It’s difficult to overstate the importance of data, especially when referring to the thousands of transactional data points our SAP systems collect for us on a daily basis. Data when properly collected and governed enables an organization to develop analytics for strategic decision making. Trusted transactional data drives the continuous improvement cycles that are critical for achieving operational excellence. Additionally, reliable data can provide a quick and painless path for appeasing auditors and demonstrating compliance.

So, it is bizarre then, that so many companies fail to properly prioritize the processes required for collecting meaningful transactional data. Without question, establishing rigor and discipline around SAP processes is a daunting task, one that requires experienced practitioners and the full support of senior leadership. However, the long-term benefits far outweigh the up-front challenges and costs.

In this article I’ll start by outlining some of the consequences of poor data quality resulting from immature SAP processes. Then I’ll review some of the steps you can take to enable your organization to begin assembling a world class set of transactional data.

Consequences

The ways in which poor SAP processes negatively impact data are almost too numerous to count. Here are just a few examples that are sure to strike a nerve.

Customer Service Levels

Immature upstream processes strap some of SAP’s core functionality with an incomplete set of data to make decisions with. This can render planning functions like MRP, ATP, forecasts, capacity planning and load

“Establishing rigor and discipline around SAP processes is a daunting task, one that requires experienced practitioners and the full support of senior leadership”

planning utterly useless. The result is decreased performance and customer service levels, not to mention the decreases in productivity that occur from being forced to manage complex SD functions manually and possibly external to the system.

Operational Inefficiency and Waste

Misaligned processes and the resulting flawed data promote bewildering levels of inefficiency and waste. As an example, consider how undisciplined procurement, warehouse and general material handling processes can generate wildly inaccurate inventory data. This discrepancy leads to a litany of problems like expedited procurement costs, inflated inventory levels, interruptions in production, COGI errors, loss related to shelf-life mismanagement, inefficient cycle counting processes, inventory write-offs, etc. It’s also easy to imagine inaccurate inventory levels leading to unplanned plant shutdowns.

Blind/Anecdotal Based Problem Resolution

Undisciplined SAP processes generate data that fails to represent what is actually occurring in your plants each day. Being unable to leverage data to form a true picture of events forces business analysts to guess at solutions, hoping that a proposed change in procedure will deliver the desired results.

Customized Solutions

Many organizations attempt to work around poor data with customized reports or bolt on enhancements/solutions. Either path is expensive, and the true benefit is often similarly limited by incomplete processes and inconsistent data.

Solution

The quality of information at your disposal correlates directly with the quality of the decisions you make. Here are a few steps you can take to begin the process of transforming your transactional data into a competitive advantage.

Aligning Business and Systematic Processes

When it comes to generating quality transactional data, nothing is more important than bringing your operational and SAP processes into alignment. It is difficult at times to find harmony between business and systematic processes. Understanding which data points to collect and the processes that drive them is critical for developing a process and leveraging SAP to capture them. There are many strategies and approaches for achieving alignment, but the end goal remains the same in that your physical and systematic processes should mirror one another as closely as possible.

(Click HERE for more information about finding harmony between business and systematic processes)

Single Source of Record

SAP must be designated the singular source of record. This means that all data within SAP must be treated as the only ‘correct’ answer. In many companies it is common practice to extract data from SAP, consider it the starting point and from there add, change and delete information

“The quality of information at your disposal correlates directly with the quality of the decisions you make”

within spreadsheets as needed. By declaring SAP the single source of record, these practices would need to be phased out while resolving data issues within SAP and rectifying the processes that caused them in the first place would become the new norm.

Integrating Data from External Sources

Coupling data from external sources with the transactional data found in SAP’s core system can further enhance the value of reporting and analytics. Sharing data with customer and supplier owned systems is becoming increasingly common. Also, extracting data from internal non-SAP systems helps to provide greater visibility and insight into operations and performance than ever before. With any integration project, maintain Source to Target Maps (STTM) to define the source of each data object, the target table and field as well as any defining characteristics of the data. Code Map Documents which contain master definitions and corresponding codes used by each system/organization are also helpful. These documents are useful especially when the need to troubleshoot arises and is helpful for promoting interoperability amongst disparate systems.

Conclusion

Data presents us with endless opportunities for improvement, growth and the solutions to problems plaguing our organizations and it’s likely that our companies’ survival depends on getting it right. With the right processes in place, any organization can find itself atop a gold mine of its own making, helping to ensure growth and prosperity for years to come.

The team at Trident SCM understands business challenges and the systems and processes needed to support them. Contact us today for your free consultation.