Knowledge base – Master Data

The importance of Master Data

Below a short table of content if you want to skip to a certain part quicker.

TL;DR

Master Data is all relevant product related information required for running a smooth operation. There are several ways of capturing this and the best method is the method that best suits your needs. Once captured it still needs maintenance, it’s a bit of a hassle but it definitely pays off!

Before we start…

In this post I’ll be sharing some of the knowledge that I’ve gained during my professional career. I will not be going to much in depth since it might get a bit too detailed which takes away from the message I’m trying to convey.

If you have any suggestions, you want to know more about Master Data or just want to have a chat to discuss your current state or future plans please reach out. I’ll be happy to come by and see how I can help. For now; happy reading 🙂

Intro

Master Data…it might not be the most exciting topic to talk about however it is a very crucial one. Having complete and accurate Master Data is one of the key elements for a properly functioning warehouse. It’s importance however is often times only recognized when the data is incorrect and processes aren’t running as smooth as they can. Master data is required in order to be(come) in control of your stock and optimize the processes inside your warehouse.

Below I will explain in a bit more detail what Master Data is, why you need it and how you can capture and maintain it. I will also give some suggestions and describe some pitfalls along the way. This will mainly be focused on logistics relevant master data, it’s important to keep in mind that for departments like purchasing, marketing, category management or finance other Master Data is likely more relevant.

What is Master Data?

First off lets quickly clarify what I mean with Master Data. Master Data is all relevant information regarding an item. Obviously this is rather vague so below is a short list of the most basic pieces of information that are important (depending on your processes obviously). Remember, the list is a lot longer but these are the fundamentals.

SKU (an unique identifier for an specific item)
SKU Name
Dimensions (length, width and height)
Weight
Volume
Barcode(s) (a single item can have multiple barcode)
Storage classifications (like dangerous goods, cooling requirements, automation possibility, theft sensitive or high priced)
Handling classifications like bundles or fragile items

Do I really need this?

YES!! It’s important to realize that your system (be it ERP or WMS) is using this product data extensively throughout many of it’s processes. Complete and accurate data lies at the basis of things like ABC Analysis, slotting logic, put-away and replenishment strategies and more obviously your picking and packing operations with for example automated carton selection/suggestions. Without this information the system can not function in it’s most optimal form meaning sub optimal processes costing you more time and money.

How do I get it?

In some cases it’s possible to get Master Data from a supplier or a general database. However you will be dependent on external parties, hence most companies capture this data themselves. Commonly this is done once a new item enters the warehouse for the first time. This capturing can be a manual process or it can be (semi) automated, this will depend on the items and your requirements. The reason the information is often captured before the item is being booked is that in order for a system to guide an item through the warehouse in the most optimized way the aforementioned information is required.

As said before this capturing can be done manually or (semi) automated. Whichever options suits your operation best is dependent on factors like:

Assortment size
The need of what actually needs to be captured
Required accuracy
Number of new items per time period
Your current system
Budget
Location for capturing this data (fixed or portable)

Manually is often done with a (digital) measuring tape or a (digital) ruler, a weighing scale, -platform or palletjack and a barcode scanner. An employee will take all relevant measurements and enter them into the system. One major pitfall here obviously is the risk of incorrect data entry hence it’s vital that this data gets checked, more on this later.

Capturing the product data (semi)-automatically is also an option. There are devices on the market that allow you to place a product in/on a machine which will capture the dimensions and the weight with great accuracy (1mm and 1 or 2 grams). Examples of manufacturers are CubiScan and KHT. Pro tip: when possible measure your own items during a demonstration, that will give you a better feeling if the machine and it’s specifics suits your needs.

Whether you are capturing manually or (semi)-automatically, it’s recommended to build some ‘safe guards’ into this process trying to prevent misinformation. Things like not allowing more than x characters to be entered within the SKU field or having a minimum and/or maximum value for weights and dimensions. Every mistake you don’t make means a correction you don’t have to do.

Another something I would recommend doing is to measure the items in a way they will be stored and shipped. As an example we can use some thin tubing. This piece can be 10mm in diameter and 1000mm long, you can enter this into your system, but the system will suggest you to use gigantic storage locations and a huge shipping box. Since this product can be rolled it might only measure 100mm by 100mm by 50mm and it can be placed in a way smaller storage locations and shipping cartons.

One other thing that is done more and more is taking pictures of the actual product and/or packaging. Capturing this can be done with a relatively simple setup like a small photostudio or with advanced machines automatically capturing an item from several predefined positions. These pictures can be used on your website but also in your operation for example when receiving the goods (great opportunity to let the employee do a quick check to see if the item visually has changed) or during picking or sorting.

Finally…I have it… or?

Unfortunately just capturing the data doesn’t cut it, this data needs maintenance. This is often referred to as Master Data Management. Why you might ask? It might happen, depending on the items you are carrying, that items get a new design and for example the dimensions change, it’s vital to capture these new dimensions into the system due to reasons described above. It’s also important to keep checking the Master Data. Whether entered manually or automatically, errors can occur!

This checking roughly exists of two parts; Rechecking your items and checking your data.

The first one means that once you’ve captured your Master Data it’s important to recheck the item to make sure the item hasn’t changed. This could for example be a trigger during receiving asking the employee to send one or multiple piece(s) to the “Master Data place” for checking. This could be done periodically like twice a year or every x shipments. Another way would be to do a ‘pick run’ and gather already stored items within the warehouse.

The second one, checking your data, means reviewing the data already present to see if there are any abnormalities. There are literally dozens and dozens (and dozens) of checks that can be performed. As it’s often times the case, which checks are the most useful depend on the items you are carrying and the business you are in. Like with the item checking it’s important to do this periodically. Perhaps you can create some system driven checks that inform Just some examples are of checks to do are:

checking the ratio between weight and volume
looking at outliers (top/bottom x number of items or top x % of items)
single barcode attached to multiple items (can be a conscious decision but this can cause lots of issues and additional work)
missing data
matching grip quantities to carton quantities to level quantities to pallet quantities
etc