Behind Every Supply Chain Are Lots of Spreadsheets, SupplyChainBrain (June 19, 2024)
It’s more than just a joke: Spreadsheets are still the go-to planning software in the supply chain industry. Whether in plain sight or behind closed doors, supply chain professionals rely on spreadsheets to navigate existing systems, devise new ones or just get the job done.
Following are some real-world scenarios that continue to require the use of spreadsheets.
Warehouse staff are challenged to determine when to release work to the floor and who should work on it. They also need to create a crew roster. Unfortunately, current tools such as warehouse management systems offer limited support. Managers gather information from various sources to bridge this gap, and use Excel to create manning schedules for the upcoming days. They also rely on spreadsheets to analyze current orders, and decide where to deploy staff and which shipments to prioritize.
Approaches to forecasting take several forms:
As Alan Rencher, chief technology officer at dental software provider Henry Schein, recently said in the Wall Street Journal: “There may be legacy users that are mistrustful of big data systems and want to completely control their data.” (Author’s note: I think the word “may” here is misplaced. Some users want to hold onto their data.)
Why Are Spreadsheets Everywhere?
There are several reasons people head for spreadsheets. They trust a spreadsheet and can see exactly what has driven the results. Sometimes, they can create their own systems where none exists within their company or commercially. Looking at product deployment across its network, for example, a large consumer packaged goods company saw many problems because its planning system didn’t consider how full the receiving warehouses were. It used a spreadsheet to project site inventories over time and indicate each week that specific sites were in critical shape. This enabled the company to instruct planners only to ship products that were “most needed.”
Often, the systems that the spreadsheet augments already exist. However, they are seen as intractable to work with or incomprehensible, or the data is wrong, or the system is misconfigured. The example above, where a large, well-known planning system was, for no apparent reason, not planning a few products, is an excellent example of the “I must have a spreadsheet” mentality.
Unfortunately, in some instances, the IT department can be held responsible for the very thing it despises: the proliferation of spreadsheets. This can happen in multiple ways, but the most common are:
This last point is important. People hate change, and as such, they prefer to stick with the familiar.
What’s Wrong With Using Spreadsheets?
Spreadsheets can have drawbacks that hinder efficiency and accuracy. They’re not good at data management. Following are some reasons that a system of record, where it exists and provides the needed functionality, is better:
More recently, companies seeking to expand their use of artificial intelligence have been surprised that the data is only available in a spreadsheet. This is a significant blocker to modernization.
What’s the Alternative? No silver bullet acts as an alternative to spreadsheet use. Instead, it’s a matter of corporate-wide dedication to supporting users with tools that meet their needs, are correctly configured, can be trusted, and provide quick responses to the turbulent business environment or changing users’ needs. Software vendors have their part to play here, too. They must offer user interfaces that are much more like the beloved spreadsheet, and enable users to quickly tailor the information they need in the way they need it.
Like them or hate them, spreadsheets will be around for a long time, and will continue to be the primary tool planners use everywhere.
Tom Moore is chief executive officer and founder of ProvisionAi, and founder and chairman of AutoScheduler.AI.