Why inventory excel sheets are inefficient for manufacturers

Author Emma Hopman

Posted Mar 11, 2023

Reads 8.8K

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Inventory excel sheets inefficient? Yes, you read that right. As much as we love spreadsheets (wow, who doesn't?), when it comes to inventory management, they can be a ticking time-bomb for small business manufacturers. Research has shown that whilst inputting data, we are all human Alexander Popes and make mistakes. However, in inventory management statistically speaking, these pesky typos or simple miscalculations can turn into problems congrats - you've just ordered the wrong level of stock!

Let's imagine keeping inventory is like building a house. The reorder point is the foundation, and safety stock is the roof. Without this support system in place, everything eventually will collapse. Inventory management requires precision and accuracy; however, an inventory Excel sheet leading to wrong information can turn into incorrectly ordering too much or too little stock - both detrimental to business growth depends on accurate predictions.

In this article, let's delve into why inventory Excel sheets are inefficient for manufacturers and how they can eventually plague your business operations in the long run. If you haven't noticed any problems yet (lucky you), mention frustrate those who have been there before you!

Inventory Management Using Excel

You've figured out that using an excel sheet to maintain store inventory is not as efficient as you thought. Perhaps you haven't noticed the dangers lurking beneath the surface of your spreadsheet. Excel sheets are great for simple calculations, but when it comes to tracking inventory, they can quickly become unmanageable.

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One of the biggest issues with using an excel sheet for inventory management is the risk of human error. It's easy to accidentally delete or overwrite data, which can cause major headaches down the road. Additionally, excel sheets lack real-time updates and can't handle multiple users at once, making it difficult to collaborate and stay on top of stock levels. The good news is that there are better ways to manage inventory that will save you time and money in the long run.

1. 2. The Ol’ Ball and Chain. Literally

The inventory excel sheet can be a person chained to your entire business. It requires constant data entry, and multiple employees access it regularly for data keeping. However, using an inventory excel sheet to manage inventory can lead to a horror story of its own - a business uh-oh.

The problem with the inventory excel sheet is that it's prone to human error, and it's not always updated in real-time. So if you rely on this type of data keeping, you might end up making decisions based on inaccurate information. That's why businesses should look into other options for managing their inventories.

2. 3. Resource Expensive

3. Resource Expensive

Using an inventory Excel sheet might seem like the easiest option, but it's far from efficient. Manually inputted data can lead to errors and duplicate orders, which can cost your business money. Dead stock is another issue that can arise when using an inventory Excel sheet. Without accurate tracking, you're potentially losing money by holding onto items that are no longer in demand.

Moreover, managing an inventory Excel sheet can be resource expensive. It requires multiple employees to update and maintain the document regularly, taking up valuable time that could be spent on more pressing matters. And if you're stuck with outdated technology, it becomes even more challenging to keep up with the latest trends and changes in your industry. It's time to switch to a more efficient solution and save your business time and money in the long run.

3. Inefficient at Tracking Data

If you're reading this, chances are that you're already aware of the inefficiencies of using an inventory excel sheet to maintain store inventory. Let's start by acknowledging that excel can be a great tool for tracking data, but when it comes to granule entries like maintaining store inventory, it simply doesn't suffice.

Every product requires its own customized product code and materials BOM (Bill of Materials). Manually entered data is subject to human error, which can result in inaccurate inventory planning. A quick scan or barcode system would be more efficient than manual entry, but even then, Excel accuracy depends on the user’s diligence and attention to detail. Maintaining an accurate store inventory is crucial for any business; therefore it should not be left up to chance with outdated spreadsheets.

4. Will Stunt Your Growth

Will an Inventory Excel Sheet Inefficiently Stunt Your Growth?

As a small business manufacturer or retailer, you may have considered using an inventory excel sheet to keep track of your orders, employees, and inventory management. While this method may provide short-term benefits, it can create issues mentioned in the long run. Possibly you're experiencing cold feet about switching to a cloud-based inventory manager or investing in intranet modules for larger scales.

However, it's important to take that step ahead to avoid future complications that could stunt your company's growth. The truth is that passing up on efficient inventory management methods can hurt your profits and slow down productivity. Don't let an inventory excel sheet hold you back from reaching your potential.

Maximizing Your Brand's Growth with Order Management Systems

If you're a small business owner, you know how difficult it can be to manage your inventory manually. Using an inventory excel sheet might seem like a good idea at first, but it quickly becomes clear that the system is inefficient and prone to errors. Excel wasn't built for inventory management, and using it can lead to hidden costs that accrue over time.

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Order management software can help small operations and businesses grow by providing real-time updates on stock levels. With this software, you'll be able to track stock levels automatically and notice when inventory is running low. This means you can automate reorder notifications based on sales velocity and current stock count to ensure that you never run out of products. You'll also be able to keep track of supplier inventory, prepare shipments, process returns, and generate purchase orders, sales orders, quotes, invoices, shipping labels – all from one place!

Collaboration between team members becomes easier when using order management software because multiple users can adjust account access and work simultaneously on the same spreadsheet document. Barcode-enabled picking allows for a live accurate stock count while automating the process of preparing shipments. The software will auto-populate fields based on previous orders reducing team time spent adjusting orders manually. By utilizing an order management system in your business plan today, you have the opportunity to maximize your brand's growth potential!

1. 1. Real-Time, Accurate Inventory Tracking

Real-time, accurate inventory tracking is crucial for any growing business. Gone are the days of stock takes happening once a month and counting inventory manually on paper. Excel sheets may have been useful in the past, but they are inefficient and prone to errors. It's easy to forget to update Excel when new stock arrives or when a customer places an unusually large order at 4 pm and it doesn't get updated until 7 pm. Plus, the person reordering stock isn't always aware of what's in inventory, meaning that some product categories may fall short while others have too much stock.

This is where inventory management software comes in. With a real-time inventory tracking system that includes barcode integration and barcode scanning for arrivals, warehouse locations, and outgoing sales, updating stock levels automatically becomes effortless. The software handles reordering based on pending reorders and subtracting sales from product inventory. This eliminates manual errors and ensures that numbers are updated with each purchase order received or shipment made. Additionally, tracking transferred stock means that there is no more guesswork about where products are located.

Overall, an Excel inventory management system simply can't compete with the monitoring offered by modern inventory management software. By adding pending reorders and subtracting sales automatically, businesses can keep their product categories well-stocked without overspending on materials they don't need. With real-time tracking capabilities like these, your inventory will never be out of sync again!

2. Historical Data and Sales Forecasting

Sales forecasting is a critical aspect of any business, but it's not always easy. Excel sheets may seem like the right tool for the job, but they can quickly become inefficient. One issue with using a single master spreadsheet to track inventory and sales data is that it can be challenging to keep up with time-changing numbers. Economic conditions, evergreen products annual sales seasonal trends, and lot affects on your sales velocity automatically make predicting sales based on raw data you're throwing into an excel sheet difficult.

Excel doesn't offer the ability to separate documents for tracking historical trends, which means you don't run an accurate analysis of your business. The finale inventory tracks may look great, but they do not give much insight into what's happening behind the scenes. If you want to generate custom reports or track particular items' performance over time effectively, you need more than just an excel sheet. Sales forecasting requires more in-depth analytics and reporting features that help you understand the story behind your data.

Frequently Asked Questions

Is Excel good for inventory management?

Yes, Excel can be a good tool for inventory management as it allows for easy tracking of stock levels, orders and sales data. However, depending on the size and complexity of your inventory, a dedicated inventory management software may be more suitable.

Is MS Excel good for inventory management?

Yes, MS Excel is good for inventory management as it allows users to track and organize inventory levels, create reports, and make adjustments in real-time.

How to calculate inventory values in Excel?

To calculate inventory values in Excel, you need to multiply the quantity of each item in stock by its unit cost. Then, add up the total value of all items to get your inventory value.

Why is inventory management important?

Inventory management is important because it helps businesses keep track of their stock levels, reduce wastage, and avoid stockouts. By managing inventory effectively, companies can improve customer satisfaction and profitability.

What is an Excel inventory template?

An Excel inventory template is a pre-designed spreadsheet that helps you organize and track your inventory levels, sales, and purchases. This tool can save you time and increase efficiency in managing your business.

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Emma Hopman

Writer at Chelmer Valve

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Emma Hopman is a dedicated blogger with a passion for writing about travel, lifestyle, and wellness. Her posts are full of practical tips and advice, drawn from her own experiences as well as extensive research. Emma's engaging writing style makes her blog a must-read for anyone looking to improve their life or explore the world around them.

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