Cookies help us display personalized product recommendations and ensure you have great shopping experience.

By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    data analytics for pharmacy trends
    How Data Analytics Is Tracking Trends in the Pharmacy Industry
    5 Min Read
    car expense data analytics
    Data Analytics for Smarter Vehicle Expense Management
    10 Min Read
    image fx (60)
    Data Analytics Driving the Modern E-commerce Warehouse
    13 Min Read
    big data analytics in transporation
    Turning Data Into Decisions: How Analytics Improves Transportation Strategy
    3 Min Read
    sales and data analytics
    How Data Analytics Improves Lead Management and Sales Results
    9 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Letter to Operations: no more spreadsheets for Purchasing
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Business Intelligence > Business Rules > Letter to Operations: no more spreadsheets for Purchasing
Business RulesData Visualization

Letter to Operations: no more spreadsheets for Purchasing

EphraimCohen
EphraimCohen
4 Min Read
SHARE

Editor’s Note: This article addresses supply chain issues in the form of a memo written to the operations management department.

Doug Potter - Newport Consulting GroupMemorandum

To:      Operations Management

From:  Doug Potter

More Read

The Data Analytics of Gas vs. Charcoal Grills Revisited
The analytics of soccer
The Physical Size of Big Data [INFOGRAPHIC]
Some Thoughts on Decision Terminology
The Keyword Tree – Spotfire, Data Visualization and Text Mining

Editor’s Note: This article addresses supply chain issues in the form of a memo written to the operations management department.

Doug Potter - Newport Consulting GroupMemorandum

To:      Operations Management

From:  Doug Potter

Re:      No more spreadsheets for Purchasing

Supply Chain management would be so much better off without spreadsheets. I see this over and over. Purchasing and operations management has a spreadsheet to tell them what and how much to reorder. And the spreadsheet has grown to a behemoth that takes constant care and feeding.

Don’t bother with cloud based supply chain planning systems, like MRP for manufacturers and DRP for distributors. People often tell me: “Our spreadsheet takes care of everything we need.”

That’s probably a true statement. As long as we can agree:

  1. You don’t need any higher profits
  2. You already programmed the spreadsheet with a complete set of supply chain best practices for purchasing and manufacturing planning.

But seriously, the biggest cost from spreadsheet-based supply chain planning is higher overhead. Related problems include:

  • Order Point versus MRP. A spreadsheet never rarely provides complete time-phased planning, usually it is just a device for enhanced order point, or min/max replenishment.
  • More Overhead. There’s tremendous overhead in the development and maintenance of the spreadsheet. Usually this shows up as time spent using, customizing, debugging, and maintaining it. One sign things are out of hand: someone on the staff decides they have to learn programming using Excel macros to help.
  • Lost Productivity. Inventing your own methods of replenishment and reordering is usually far less effective since you cannot really deliver all the money-saving features of a true MRP system (for example, try implementing “pegging” from a spreadsheet).
  • “Not Invented Here”. We humans have an innate problem. We tend to like things we made ourselves. (Ladies, if you think this is a male problem, I’m interested in your opinion – email me at dpotter (at) newportconsulting.com). So anyone associated with the development and invention of that spreadsheet will typically defend its use and block any attempts at best practices or real supply chain improvement.
  • Involve Everybody. Spreadsheets frequently live on a computer and are passed around via email. When more than one person needs access to the most current information. MRP systems (especially cloud based systems) allow multiple users and your entire organization to get real-time status regarding supply chain activities.
  • Not Scalable. As business volumes increase, the management of Excel as a planning device becomes exponentially more uncontrollable.

I suppose you could consider the Excel Spreadsheet an extension of the enterprise it management system. My counterargument: it’s an improper extension of the company enterprise software. There’s a much better solution, if you follow standard best practices in supply chain planning. These best practices should include Cloud ERP so you entire organization, your business partners, and other stakeholders can participate in supply chain planning.

Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

intersection of data and patient care
How Healthcare Careers Are Expanding at the Intersection of Data and Patient Care
Big Data Exclusive
dedicated servers for ai businesses
5 Reasons AI-Driven Business Need Dedicated Servers
Artificial Intelligence Exclusive News
data analytics for pharmacy trends
How Data Analytics Is Tracking Trends in the Pharmacy Industry
Analytics Big Data Exclusive
ai call centers
Using Generative AI Call Center Solutions to Improve Agent Productivity
Artificial Intelligence Exclusive

Stay Connected

1.2kFollowersLike
33.7kFollowersFollow
222FollowersPin

You Might also Like

Gen “C”

5 Min Read
dashboard tool
AnalyticsBig DataBusiness IntelligenceData ManagementData VisualizationModelingSoftware

First Look: Decisions

6 Min Read

The BI Collaboration Challenge [VIDEO]

1 Min Read

Why it’s a Good Thing That Google’s Data Fetish Drove Away Its Top Designer

3 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

ai is improving the safety of cars
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence
giveaway chatbots
How To Get An Award Winning Giveaway Bot
Big Data Chatbots Exclusive

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-25 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?