Case study: software improving use of materials master

| 0 Comments
Trolley.pngSeveral organisations invest effort into improving their material master only to have their material master improperly used. The problem is firstly that users often place a unique (free-text) order for goods and services that have already been created in the material master, and, secondly that the material master is incomplete and does not cater for all the goods and services required by the organisation.

Jacoe Bezuidenhout, Group Procurement Technical Co-Coordinator: Commercial Services for Xstrata Alloys told SmartProcurement how the Ferrochrome and Primary Vanadium producer is using software to eliminate maverick expenditure from its operations.

“At Xstrata we are constantly looking for ways to reduce free text-spend and increase the use of our material master. We have put in a great deal of effort to enhance our material master by fixing poor descriptions and adding new items, but all this would be undone if users fail to use the materials master.”

“This maverick spend has several consequences:

• We do not use the correct contract - contracts are linked to material numbers - and end up paying more than we should and / or use the incorrect vendor.
• We buy something that we already have in stock and do not need to buy.
• We have incorrect usage information in our inventory management system which relies on material numbers. The system will therefore not keep the correct stock levels resulting in potential stock outs and over supply.

“Xstrata’s sourcing team already uses SearchLight to correctly classify free-text spend for contracting and commercial purposes, but in materials management we needed a way to prevent free-text spend before it happens.

“So we have started using the SearchLight MatchIT software to help prevent maverick spend and identify new items to add to our material master.

The system compares all outstanding requisitions to the material master and tells us whenever the free-text description that someone has used looks similar to something that already exists in the material master. We then notify the end user showing the correct material number so that they can update their requisition.

Figure1.jpgFigure 1: Example possible matches

 

Figure2.jpgFigure 2: Example of free text items that did match the material master

“The software gives us a list of items that did not match so that we can add these items to the material master.

Figure3.jpgFigure 3: Example of free text items that did not match the material master

“The software is a great help; ensuring that Xstrata’s material master is properly used and indicating what to add to the material master.

Contact Jacoe Bezuidenhout for more info on how SearchLight MatchIT has nipped Xstrata’s maverick spend in the bud.

Leave a comment


 

 

Career opportunites

Planner

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Are you looking for new career opportunities as

Procurement Specialist

  • >500 000 Gauteng Procurement Officer / Specialist Strategic Sourcing Supplier / Business Development
As a specialist Supply Chain recruiter, I am

Logistics Controller

  • <500 000 Gauteng Logistics & Warehousing Procurement Officer / Specialist
Seeking dynamic up and coming candidates looking for

Supply Chain Manager

  • >500 000 Permanent Procurement Management Supply Chain Western Cape
As a specialist Supply Chain recruiter, I am

Business Process Specialist

  • <500 000 Gauteng Procurement Consultant Procurement Officer / Specialist Supply Chain
A company within the financial services sector is

LOC Procurement Manager

  • Gauteng Permanent Procurement Management Procurement Officer / Specialist
Your Responsibilities: Job Purpose To be the interface ...More

Account Manager

  • >500 000 Procurement Officer / Specialist Supplier / Business Development Western Cape
Key Performance Areas:• To ensure that all aspects

Consultant

  • >500 000 Gauteng Procurement Consultant Strategic Sourcing Supply Chain
Key Performance Areas:• You'll be concerned primarily with

Commercial Buyer

  • <500 000 Buyer Contracts Procurement Officer / Specialist Western Cape
A well-known Mining company is seeking the services

Technical Buyer

  • <500 000 Buyer Contracts Procurement Officer / Specialist Western Cape
A well-known Mining company is seeking the services

Business Development Executive

  • >500 000 Gauteng Supplier / Business Development
A retail solutions company is seeking a New

Financial Manager

  • >500 000 Contract Operations, Planning & Inventory Procurement Management Western Cape
Looking for an unemployed CA (SA) in Cape

Chief Financial Officer

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
An exciting opportunity exists for a CFO with

Procurement Consultant

  • >500 000 Gauteng Procurement Officer / Specialist Strategic Sourcing
Key Performance Areas: A profound knowledge of sourcing

Commodity Specialist: IT

  • >500 000 Commodities Gauteng Procurement Officer / Specialist
Key Performance Areas:• Effectively applies acquired technical/functional skills

Senior Consultant

  • >500 000 Gauteng Projects / Category Management Supplier / Business Development
Key Performance Areas:• Adheres to best practice processes

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Procurement Management
Key Performance Areas:• Manage warehousing and distribution 3PL's

Head of Franchise Network

  • >500 000 Contracts Operations, Planning & Inventory Western Cape
The opportunity to work for a multinational retail

National Driver Manager

  • >500 000 Analyst Contracts Logistics & Warehousing Operations, Planning & Inventory Western Cape
The opportunity for an extraordinary individual to join

Commodity Specialist: Industries

  • >500 000 Commodities Gauteng Procurement Officer / Specialist
Key Performance Areas:• Under the guidance of the