{"id":4107,"date":"2019-08-16T17:25:28","date_gmt":"2019-08-16T17:25:28","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=4107"},"modified":"2022-09-02T08:17:32","modified_gmt":"2022-09-02T08:17:32","slug":"outsourcing-the-master-data-management-process","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2019\/08\/outsourcing-the-master-data-management-process\/","title":{"rendered":"Outsourcing the Master Data Management Process"},"content":{"rendered":"\r\n

Introduction<\/strong><\/p>\r\n\r\n\r\n\r\n

One of the fastest growing processes in popularity to be housed in a Shared Services environment<\/a> is that of Master Data Management (MDM).\u00a0 Once the process is in Shared Services, some companies have taken the next step and transitioned this vital function to a 3rd party.\u00a0 How that transition is carried out and how to best manage the ongoing administration of this critical function will be the focus of this research abstract as we feature the actual experiences of a company that has achieved success in this area.<\/p>\r\n\r\n\r\n\r\n

Company Experience<\/strong><\/p>\r\n\r\n\r\n\r\n

On a recent Peeriosity PeercastTM<\/sup>, a Peeriosity member company with over 15,000 employees and over $10 billion USD in revenue, shared their recent experiences with the Master Data Management process.\u00a0<\/p>\r\n\r\n\r\n\r\n

In the eleven years prior to 2016, which is when the company executed contracts with Genpact<\/a> and Infosys to outsource significant portions of Information Technology & Global Business Services, the company had focused on the consolidation, standardization, and documentation of the process areas impacted by their implementation of SAP.\u00a0 At the time of the sourcing event, the outsourcing companies had not yet demonstrated their ability to support Master Data Management, so Conagra chose to exclude this critical area from the outsourcing scope.\u00a0 After three years of proven ability, they decided to leverage the existing contracts to expand their responsibility into the MDM space.\u00a0<\/p>\r\n\r\n\r\n\r\n

First to transition were the Master Data activities related to the customer, vendor, pricing, and Indirect Purchasing.\u00a0 Three additional areas that they are currently transitioning include direct materials, finished goods, and product information management, with the expectation that the transitions will be completed by late 2019. \u00a0<\/p>\r\n\r\n\r\n\r\n

One of the design requirements was to have the MDM Outsourcing Team mirror the company\u2019s domestic office hours.\u00a0 Another success factor was the creation and utilization of a performance dashboard that helps them to have informed discussions with the service providers and be able to effectively monitor their performance compared to the service level agreement targets.<\/p>\r\n\r\n\r\n\r\n

Some of the lessons learned during this transition include the following:<\/p>\r\n\r\n\r\n\r\n