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Keywords: supply chain performance, logistics, service provider, material master data management, moderating role.
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.
1 Introduction
In industrial operations, the management of material flows, information flows, and financial flows within the supply chain is the foundation of organizational triumph, ensuring a smooth flow of materials, information, and services from suppliers to end-users in enhancing value addition [1]. Supply chain performance (SCP) refers to how effectively and efficiently a supply chain achieves its goals, including metrics such as inventory turnover, order fulfillment accuracy, and lead time reduction. The Resource-Based View (RBV) theory emphasizes that organizations can achieve superior competitive advantages by effectively managing their internal resources, including material master data (MMDM), alongside their capabilities and competencies [2]. Material master data (MMDM) consists of critical information related to materials, such as...