Get to trustworthy master data in 5 steps, as Terumo did!

Terumo as organization

Terumo EMEA, headquartered in Leuven, was founded in 1971, fifty years after the establishment of Terumo Japan. With over 1,400 employees and revenue exceeding €700 million in FY21, Terumo EMEA operates three manufacturing sites and 22 sales offices, serving over 50 countries in the EMEA region. Their product range spans safety needles, blood glucose meters, and guidewires for coronary artery disease diagnosis and treatment..

The Challenge

Before their journey towards reliable master data, Terumo faced several challenges impacting their business processes:

1. Inconsistent and Unreliable Data: Different departments and regions used varying naming conventions for the same products, causing confusion and tracking difficulties. Inaccurate customer information further complicated effective communication and service.

2. Master Data Duplication: Multiple systems led to duplicate customer records and redundant product data, resulting in inefficiencies and inconsistencies in pricing, inventory management, and procurement.

3. Reactive Data Management: Data quality issues were often discovered late during reporting, requiring time-consuming manual corrections.

4. Lack of Governance and Ownership: Ambiguity in data ownership and the absence of management policies led to inconsistent practices and data quality issues.

The Solution: A 5-Step Plan

Terumo, in partnership with Alluvion, implemented a comprehensive master data management solution using SAP Master Data Governance (MDG). Here's how they did it:

Step 1: First-Time-Right Data Entry

Terumo shifted from Excel-based solutions to SAP MDG, supported by the Alluvion MPP addon, establishing it as the single source of truth. This eliminated duplicate data and ensured first-time-right data entry through defined governance flows and data validations.

Step 2: Building a Cloud-Oriented SAP S/4HANA Solution

Introducing Fiori applications enhanced user experience, while enabling HANA search improved error-tolerant search results and duplicate detection. This gradual, agile approach helped ease the transition to S/4HANA.

Step 3: Standardizing Data and Eliminating Duplicates

By consolidating data sources and standardizing definitions, Terumo significantly improved data quality and reduced maintenance costs. Tools from SAP MDG for data consolidation, standardization, and cleansing were key to this step.

Step 4: Federation of Multiple Systems

Terumo together with Alluvion designed a master data integration architecture to manage data across various systems, including Salesforce and SAP Concur. SAP MDI acted as a control tower, orchestrating data between systems to ensure accuracy.

Step 5: Next-Level Automation with External Data

Terumo integrated external data providers for automated address validation, bank account verification, and credit scoring. This proactive approach minimized manual data correction efforts and ensured data accuracy..

The Benefits

Immediate Benefits:

• Streamlined material data maintenance processes
• Streamlined customer data maintenance processes
• Enhanced data entry accuracy with SAP MDG
• Improved user experience with Fiori applications

Long-Term Benefits:

• Higher data quality and reduced maintenance costs
• Better insights into data and processes with AI-driven rule mining
• Continuous improvement in data governance and standardization

The Results of Terumo

Quantitative Results:

• Significant reduction in data duplication and inconsistencies
• Improved accuracy in inventory tracking and sales reporting
• Enhanced efficiency in managing customer relationships

Qualitative Results:

• Clearer data governance and ownership
• Higher employee morale due to reduced manual data corrections
• Better customer communication and service quality

Conclusion and Key Takeaways

Terumo's journey to reliable master data quality was like a mountain expedition, requiring preparation, resources, and a strategic approach. Key takeaways from their journey include:

• Choosing S/4HANA for a future-proof foundation
• Aligning with SAP’s vision on Master Data Management and Integration
• Achieving next-level automation with external data providers
• Recognizing Master Data Management as a continuous process

The future looks bright for Terumo, and with the right expertise and guidance, your organization can achieve similar success. Alluvion is ready to guide you on this journey to master data excellence!

Alluvion's Impact on SAP MDG Implementations

Alluvion's implementations of SAP MDG on average result in significant improvements:

1. Data Accuracy: Increases by 25%, reducing errors and improving decision-making.
2. Process Efficiency: Time spent on data management processes reduces by 30%.
3. User Satisfaction: User adoption increases by 30%, with positive feedback on ease of use and efficiency.