Effects of material master data management on supply chain performance at FLSmidth: the moderating role of PiLog external service provider

Abstract

In the dynamic landscape of industrial operations, the effective management of material master data within the supply chain is paramount for organizational success. This study investigates the challenges and solutions associated with Material Master Data Management (MMDM) at FLSmidth (FLS), a leading supplier in the cement and mining sectors. FLS operates within a complex and diverse supply chain environment, serving global clientele across various sectors. The study aims to understand the impact of MMDM implementation on supply chain performance at FLS, specifically focusing on performance metrics such as inventory turnover, order fulfillment accuracy, and lead time reduction. The moderating role of PiLog, an External Service Provider (ESP), is explored in this context. Employing a mono-qualitative approach, the study delves into MMDM implementation through in-depth interviews with 18 FLS employees and 4 PiLog customers. Thematic analysis reveals that well-implemented MMDM systems enhance visibility, planning, and inventory management, leading to improvements in supply chain performance. Challenges in stakeholder persuasion and infrastructure access are identified as common implementation hurdles. PiLog emerges as a crucial moderator, providing structured frameworks, emphasizing standardization, and addressing governance challenges. The findings underscore the importance of strategic partnerships between organizations and ESPs in successfully implementing and sustaining MMDM initiatives. Recommendations include strategies for overcoming infrastructure challenges, leveraging ESP expertise, and aligning with best practices in standardization and governance. This study contributes to the academic discourse on MMDM implementation and offers practical insights for organizations seeking to enhance supply chain performance through meticulous MMDM practices.