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How To Make Data Driven Decisions - Quickly & Effectively?
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How To Make Data Driven Decisions - Quickly & Effectively?

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Create a Unified Database

Our biggest challenge was that each department was working on a different database. This was the cause of various problems. For instance, the costing team would have its own database – it would do a costing, give it to the marketing officer who would then send it to the client and get the order. Once the order was booked, the design team took over.

Now they had a different database to work upon and sometimes it clashed with what the marketing officer had quoted for. Sometimes the marketing officer himself had an issue that the design team would add something on a bill of material but not cost for it. Or conversely, sometimes they would cost for something and not mention it – so the company lost money.

In another instance, my purchase guy got a call from the vendor saying that, “You have ordered for 15 nos. of MCCP of 100 ampere – I don’t have the model you have asked for, I have an alternative model. It meets all the specifications. Shall I send it to you?” The purchase guy agreed. But the catch was that this product was exactly double the price of what we had costed for. It was a win situation for the seller but not for us. We lost money on that. And it wasn’t even caught anywhere. It was accidently discovered 6 months down the line. This loss was due to lack of an integrated system and also that each person has a different database. The costing, purchase & marketing department all had different databases and were ignorant of the requisite mandates set by the others – resulting in a disconnect.

Now, with an ERP, we have been able to tie everybody through one database. We have been able to eliminate the possibility of losing orders because of higher costing or getting into a loss situation in a job because our purchaser got something costly. We have also been able to minimize losses incurred because of wrong billing. My whole process is now seamless. I am also able to save a lot of time because I no longer need to be directly involved in decision making about the BOM – it consumed about 1-2 hours a day earlier, but has reduced to 2-3 minutes now.
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