Valspar Recognized for Innovation in Supplier Information Management
Every year, Supply & Demand Chain Executives (SDCE) magazine identifies 100 Great Supply Chain Projects for supply chain excellence. These projects must show measurable gains in ROI through cost-cutting and increased efficiency, whether in warehouse, transportation, procurement sourcing or any other category in the end-to-end supply chain.
One of the 2015 SDCE award winning projects was Valspar, a global manufacturer of paints and coatings, for its innovation in vendor information management. The $4.5 billion company is using Master Data Management (MDM) to strategically manage and share information about their vendors and raw materials.
About Valspar’s Supplier Information Management Initiative
Like many global organizations, Valspar has multiple business units sourcing raw materials from thousands of vendors around the globe with varying purchasing practices and based on various systems. As a result, their core supplier data and raw materials data was often missing or wrong. This made it difficult to calculate the total spend on raw materials or the total expedited freight costs.
“Our buying power was limited by the age and quality of available vendor and raw-materials data. That meant that our raw materials portfolio was proliferating, as was our vendor portfolio”, says Steve Jenkins, global IT director at Valspar in a recent interview with Diginomica.
Employees used a manual, time-consuming and error-prone process to consolidate vendor and raw materials data for reporting, which revealed that their buying power was limited by the quality of available supplier and raw materials data.
The manufacturer of paints and coatings determined that by better managing and sharing supplier and raw materials data, they could gain economies of scale in purchasing to negotiate better pricing and payment terms to cut costs. They could also better understand relationships with vendors across the enterprise and develop internal process efficiencies to realize additional savings. Valspar chose Informatica MDM and Informatica Data Quality, Informatica Data Integration and Informatica Address Verification to strategically manage and share their supplier and raw materials data for their global operations.
Business Results for Valspar using Informatica
Informatica MDM manages Valspar’s vendor and raw materials data centrally on an ongoing basis. Now, Valspar has a single trusted source of their data.
Valspar expects to gain the following business benefits:
- Streamlined RFX processes to accelerate raw materials cost savings
- Reduced total number of raw materials SKUs and vendors
- Increased productivity of staff focused on pulling and maintaining data
- Leveraged consistent global data visibly to:
- increase leverage during contract negotiations
- improve acquisition due diligence reviews
- facilitate process standardization and reporting
To learn more on how Informatica helps organizations worldwide manage their suppliers and the products and services they supply, please visit www.informatica.com/tsr.