Master Data and Data Quality
Why supply chain performance is capped by master data quality, and how to fix it structurally.
By SupplyChain.management · Last updated
Definition
Supply chain master data covers item, supplier, customer, location and planning parameters that every transaction and plan depends on.
Why it matters
No planning system, dashboard or AI model can outperform the quality of the master data feeding it.
Formula
Data Accuracy = Correct Records / Records Audited x 100
Example
An audit found 23% of items carried default lead times, which made every replenishment calculation optimistic.
How to interpret it
Recurring plan failures with sound logic almost always indicate parameter data problems.
How to improve it
Assign data ownership, audit critical fields on a cycle, validate at entry, and review planning parameters as a standing task.
Common mistakes
Treating master data as an IT responsibility rather than an operational one.