The standardization and management of material registration is fundamental to an organization's supply chain, influencing planning, production, warehousing, and distribution, including accounting and tax aspects.
Registration is important in the processes of production, warehousing, distribution, replenishment, sales, taxation, and controlling, among others—meaning it is of interest to the entire organization. Companies make significant efforts to automate processes and, with the support of technology, increasingly seek accurate information to make business decisions. Undoubtedly, having consistent data foundations is the critical path to success. Material and service master data that is not subject to structured processes, predefined standards, and trained personnel for management will inevitably pose major difficulties for internal customers who need to include items in their procurement processes.
Level solves chronic problems and prevents rework with a two-step methodology: material registration cleansing and standardization, followed by ongoing management, improving the supply chain and data quality, reducing administrative costs, and enhancing economic-financial performance.
Detailed mapping of the item master data, identifying internal standards and nomenclatures, and assessing item relevance based on turnover and consumption over a predefined period.
Standardization of the database to identify identical or similar items in the master records, eliminating duplicates to achieve a unified registration.
Analysis of internal abbreviation patterns and standardization of long and short descriptions (PDM) using the universal reference of UNSPSC item categories.
For enrichment, items are mapped against technical catalogs, internal databases are searched, and even physical inspections are performed to enhance descriptions.
During database harmonization, basic units of measure per item category are identified, and purchasing units as well as consumption units are defined.
Material registration control refers to the process of organizing, standardizing, and maintaining the records of all materials used by the company. It is essential to ensure the accuracy and consistency of material-related information, from procurement to final use.
By eliminating duplicates, correcting inconsistencies, and standardizing material classification, you increase the efficiency of purchasing processes, reduce operational costs, improve material traceability, and minimize production and distribution errors.
Poorly managed material registration can result in various problems, such as purchasing incorrect materials, wasting time during quotation processes, stocking off-specification items, production line shutdowns due to a lack of spare parts, creating duplicate and obsolete items in the ERP system, among others.
The ongoing material registration management process involves continuous monitoring of records, identifying and correcting recurring issues, maintaining data quality, updating records according to business needs, and implementing best practices to ensure database integrity and efficiency over time.
Material registration software, such as Cataloteca, can improve operational efficiency by automating manual tasks, facilitating information access and searches, integrating data with other enterprise systems, offering advanced analytics and reporting features, and ensuring compliance with standards and regulations.
An intelligent solution for material registration helps reduce operational costs by eliminating waste, reducing errors in purchasing and inventory processes, optimizing the use of company resources, facilitating negotiations with suppliers, and increasing the efficiency of material-related workflows.
Best practices for maintaining data quality in material registration control include defining clear standards and guidelines for material registration and classification, training personnel responsible for managing records, using automation technologies and tools, conducting periodic data audits and reviews, and constantly monitoring the integrity of the master data.
Improving material registration management can positively impact the company's economic-financial performance by reducing operational costs, increasing process efficiency, improving the accuracy of information used for decision-making, optimizing resource utilization, minimizing non-compliance risks and fines, and increasing market competitiveness.
Through proprietary Level technology, we monitor outsourced service contracts. By verifying compliance with legal obligations, we minimize the risk of administrative and legal liabilities.
Throughout Level's history, we have incorporated best practices and developed tools to differentiate our procurement outsourcing services, relentlessly pursuing ROI for our operations.
Contractual risk mitigation and cost reduction are the goals of Level Contract Management. We provide support for planning, incident management, compliance deliverables tracking, service level policies, and document validity monitoring.
