The first thought that arises in our minds, when thinking about the topic at hand, is that – ‘Data governance is a crucial component of all aspects of the business’. This statement holds quite true, however, it is particularly crucial for supply chain management, so as to ensure, that they remain error free, as well as quality-controlled. For supply chains to continue competing in the global milieu, the need to hone their ability to address legal/regulatory compliance demands at a fast pace and avoid interruption of business operations, at all costs, is imperative. Hence, this is where a surge of data governance opportunities, arise.
The fact is that goods and services are always on the move, which implies that a large quantity of data is exchanged with a hulk of supply chain data, that is actually generated outside of the enterprise. Thus, if proper data governance practices are not implemented effectively, even a slight error can lead to a major loss of revenue, as well as time.
Hence, Moglix is looking at 6 reasons, why data governance is crucial for supply chain management:
- Cost Savings: It is the topmost priority of organizations. Even though supply chain team might face budgetary strains in the beginning, but eventually, payoffs begin to grow at a rapid pace.
- Early Defining of Metrics and Milestones: Before work commences on any given project/strategy, it is imperative to understand the health of your data currently, behind the given goal. This will help in the understanding the effectiveness of your baseline.
- Doing More with Less: Liberation of repetitive tasks will help in the unlocking of the resource potential of employees. This will also promote employee growth and encourage process ownership, across the various steps of the data progression.
- Streamlining of Data: Relevant information that impacts your business should have your attention. Hence the consolidation of records, can help in determining utilization and have a finer control over duplicate/inactive or under-utilized data.
- Transparency: Availability of reports that show the rate of new records creation, quantity of records and their utilization, can help department managers understand the business better.
- Risk Identification: By defining a scope of criteria to locate data points that fall away from the normal business activity, you can add controls and checks, so as to, mitigate unwanted behaviour.
Have more to add to our reasons listed above? Tell us what you think about the importance of data governance for supply chain management, in the comments section below.