WINNER: BEST PROCESS IMPROVEMENT INITIATIVE
PROJECT: OUTSOURCING OF GLOBAL MASTER DATA MANAGEMENT
As a Saudi diversified manufacturing company, SABIC sources around 1.8 million different materials for the production of more than 1,600 products across 200 sites in 43 countries. Concerns about attracting and retaining employees, training costs, quality control and how this might limit future growth led the firm to “overhaul” its operating model. It adopted various innovative ways of working to allow the company to leverage industry specialist capabilities, while standardising and managing its Global Master data management. It used an outsourcing model, a hub and spoke model, offshoring, and an outsourcing contract governance model and communication strategy. The move brought a 57% cut in service costs, increased data quality from 84% to 94% and slashed processing time from 12 days to 4.6 days, as well as improving user experience and access to catalogue items.