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Vendor Master Administration

The full responsibilty for the vendor master administration (VMA) was transferred to the Accounts Payable team of a global player for petrochemicals. Due to the fact, that there were different parties create multiple vendors for the same supplier, they had to stardardize the VMA and improve the data quality. In cooperation with our partner Transparent, STÖHR FAKTOR completed incomplete data records and identified and blocked inactive as well as duplicate vendors. To ensure the highest data quality and to standardize the VMA, a governance was created.

Challenge

  • Big amount of potential duplicate and incomplete vendors
  • No distinction between active and inactive vendors
  • Absence of solid VMA governance

Service

Module 1: Recovery Service

Identification and demand of: 

  • Duplicate payments
  • Outstanding credit amounts 
  • Unpaid invoices or debit balances
  • Wrong vendor payments

Module 2: Master Data Clean-up

  • Identifying and analysing duplicate vendors
  • Decision process for unique vendors
  • Identifying and analysing incomplete vendors
  • Identifying and analysing inactive vendors

Module 3: VMA

  • Creation of vendor master administration (VMA) governance

Key data

  • Duration: 9 months
  • Scope of brief: 60 FTE
  • Branch: Petrochemicals
  • Company size: 6,500 employees

Results

Module 1: Recovery Service

  • 8,800 vendors contacted
  • Duplicate and over payments recovered

Module 2: Vendor master data clean-up

  • Incomplete and duplicate vendors identified
  • Duplicate vendors cleaned-up
  • Incomplete vendors completed
  • Inactive vendors blocked

Module 3: VMA

  • Analysis of internal policies and requirements for vendor data
  • VMA developed
  • Review & approval with stakeholder
  • VMA communicated

Summary

  • Module 1: 8,800 supplier contacted with statement letter and155 recovered claims (>1,6 million Euros)
  • Module 2: Identification of 15.700 active and 1.150 duplicate vendors and 13.300 inactive vendors
  • Module 3: VMA created and communicated

 

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