What is Master Data?

Definition: Master data refers to the fundamental, permanent data used within a company to support business processes and transactions. This data is stable and rarely changes, unlike transactional data, which is continually updated.

What is Master Data Made of?

Master data typically includes information about fundamental business entities such as customers, suppliers, products, and materials. For example, master data for a customer includes details like name, address, contact information, and payment terms. This data is crucial for the smooth execution of business transactions, serving as the foundation for many processes, from order processing to invoicing and reporting.

Master Data in Logistics

Master data plays a crucial role in logistics as it forms the foundation for planning, managing, and executing logistical processes. Logistics master data includes information about transport routes, warehouse locations, vehicles, carriers, as well as product and packaging details. This data is essential for building efficient supply chains and ensuring goods are delivered on time and cost-effectively.

For example, master data for a warehouse location includes details such as storage capacities, site addresses, and specifications of storage facilities. For transportation, data about vehicle types, loading capacities, and routes is vital. Additionally, customs requirements and international shipping conditions are also part of logistics master data.

Maintaining and ensuring the consistency of this data is critical to avoid disruptions in material flow, optimize the supply chain, and guarantee the reliable availability of goods. In IT systems like SAP, logistics master data plays a central role in automating and integrating logistical processes.

What are the Benefits of Master Data?

By maintaining precise and consistent master data, the efficiency and accuracy of business processes are improved. It ensures that all departments within a company can access reliable and up-to-date information, leading to better decision-making and more effective business management.