Simplistic data processing tools
To run a successful business it is vital that the inventory is managed carefully. Even seemingly small inventory management decisions can have a profound and far-reaching impact across the rest of the organisation. For a company to succeed, the inventory strategy must align with the overall corporate vision of the organisation.
Surprisingly, companies are highly reliant on simplistic data processing tools to manage their inventory. The inefficiency of ordering with a simple spreadsheet is costing money through excess and obsolete inventory missed sales, and wasted time. All of these can cause problems to the bottom line which directly affects profit and loss.
In our field, Excel spreadsheets are often the default tool for every bit of analysis required. However, trying to manage inventory this way can quickly become a complex and long-winded exercise. In a situation where demand or supply can quickly change or where transfers between locations need to be suggested based on certain business rules, an Excel sheet will not be sufficiently responsive to support these processes. After all, how can company processes remain sustainable if the spreadsheets in question have to be partially re-invented every time a change occurs?
Furthermore, a spreadsheet is only as accurate as of the person who created it. What happens when this person changes roles or leaves the company? Will their replacement be able to decipher the cryptic formulas which have been developed over the years? The reality of Excel spreadsheets is that every sheet becomes bespoke and companies become dependent on whoever created the document. Besides that, wouldn’t it be nice if the business can capture the knowledge of its talented employees and integrate that into the inventory processes?