One of the main issues is lack of IT support. When data is needed, we have to put it together using a bunch of disparate reports.

Oh, sure, we have SAP Business Warehouse, but nobody asks us when the cubes are built, and then we are told to exclude vendors rather than have people correct the reports. Most resources go to sales reporting and accounting.

Last time we asked IT to activate Supplier Management in SAP, we were told it was up to the super user to get it working. But the super user lacks access to modify configuration, so we got stuck.

So, the best we can do is to use Excel and hope for the best.

Regards.
Armando.

Excel by itself is limited, but when coupled with a database which enables cell-level collaboration inside and outside the firewall, cell-level access control, auditability, security, and integration with mulitple systems, supply chain users are very happy. Boardwalktech has many examples of companies that have deployed our patented Excel-based supply chain solutions after spending lots of time and money trying to get a “traditional” enterprise application to be flexible enough to support the diverse needs of their company’s supply chain environment. So, we take exception to the DOOMED moniker– in fact, to quote one of our $30B+ customers “With most
systems I’ve seen deployed, all of the initial focus is on getting the system to work. With Boardwalktech, we were able to focus on getting the business value right away…it is amazing.”

I agree wholeheartedly with this article. I see it this way, Excel is a business data analysis tool. It is not an enterprise application, it is not a database, and it is not a user interface to be used to insert data into either of those. You should be compiling data from different sources into Excel to create ad-hoc analysis and reports - not the other way around. Also, don’t get me started on Access :-)

I agree with Ross…excel is a MS office document interface capable to link up to an enterprise application for adhoc business data reporting & analytics.I agree with the view point mentioned in the article as well. It is not a tool to enable different business process transactions (e2e) or provide visibility for a company’s supply chain e.g warehouse, sourcing, 3PL etc.

Interesting comments. I have been both amazed and appalled at the organizations that run their supply chains with Excel. I am talking about multi-billion dollar companies (yes, that is a “b”) where their demand and supply planning is all done in Excel. Even most of their financial planning and budgeting is also done in Excel.

The problems that I see are that enterprise systems lack flexibility (what data to use, how to present it, and the actual calculations to use) and also lack “what-if” capability. On the other hand, the problems with Excel are lack of consistency, many answers to the same question (multiple versions of the “truth” depending upon how a particular sheet was put together), delays in revising the sheets after any change, and difficulties in keeping all those sheets “current” as data changes, particularly BOM or supply chain structures.

Some companies have found a different approach. I will admit to bias – I work for the solution provider. But, that does not change the degree of the problem nor the validity of the solution. See www.kinaxis.com for more information.

I’m a huge fan of both Kinaxis’ RapidResponse and Excel. The article goes a bit overboard however. Very few real companies would use Excel for ERP and BOM DB workflows (Duncan makes note of an example but I will stake quite a bit of money that there are a few exceptions yes, but not the rule). Now, *small* companies would. Is that a probem? Doesn’t have to be.

The difference is if we are talking many small companies, then what are the issues? Visibility, what if, multi-input? None exist really. Why? Because it’s 1 guy running it all in this small company - he doesn’t share, he gathers all the data, and what ifs only matter if you’re going to tell a customer “no” and a small company never will.

And here’s the elephant in the room - Excel is virtually free. Again, for big companies and their complexity, it’s worth getting “real” systems, but for small companies, cost over efficiency may be a real trade off. So the above article doesn’t really hold - real companies only use Excel for ad-hoc analysis and small companies can’t afford big programs (that often cost too much to impliment, don’t deliver what they promise, etc).

Also, Excel actually does have quite a bit of dynamic capability and modeling what ifs really isn’t that hard. Still, RapidResponse is slick and easier out of the box, but again, not free.

Lastly, there are many ways to do anything, and there are levels of skill at each as well. I can show you a company using RapidResponse, and using it poorly as well. The tool only gets you so far. Likewise, with the proper people and processes, I can show you a successful company with pencil and paper!

Excel is a great tool! …right up until you press the ‘send’ button on the email you’ve attached it to. Then the questions start of who controls the master copy and which file is the latest version. For most small companies, it’s all about fixing a problem right away with whatever tool is easily available, and almost everyone has a copy of Excel. Excel is nearly free isn’t it? http://tiny.cc/qbpfn

When the tool you carry is a hammer, everything looks like a nail.

As for solutions to the problem, I agree with the author’s comments about the need for “visibility, control, collaboration, real-time data sharing among trading partners, and security”. For a long time industry has believed the way to accomplish these goals was through BIG enterprise software. And for Fortune 5000 companies, this may very well hold true. The key for smaller companies should be a solution that can “right-size” itself to their needs, adding users and functionality as the company grows. In this regard, SaaS solutions lead the charge, in addition to being a flexible and accessible platform; it can be implemented with no additional IT resources. My company has a solution for online BOM collaboration and change management that takes less effort to maintain than Excel. If you are curious, visit us at www.arenasolutions.com

I’d spent much time on Excel modeling to build up an Excel tool system for manufacturers, and now found Excel is not enough, we’d to consider Access also. I know well if I could finish this tool system, then I can build up a strong purchasing team in China with lean structure and persons to support global sourcing attempts of oversea small and middle companies. I’m very interested to have chance with freign partner in building up this tool system.

Thanks okay

This continues to be an interesting discussion. Let me respond to a few comments by Devil’s Advocate.

As for examples of companies running their supply and distribution on Excel, I have had personal experience with at least 6 different multi-billion companies who, until recently, did exactly that. Non-disclosure agreements prevent me from disclosing names.

On the other hand, I do agree with the Devil that a company whose supply chain is run by a single person could probably manage quite well in Excel. I also agree that tools don’t automatically lead to success or failure. There are always three elements: People, Process, and Tools. All three need to be working together for real success. The success rate of companies using RapidResponse is very high (not quite 100%, but very close - People and lack of process still get in the way! I believe much companies implementing RapidResponse enjoy a much rate of success than than with any other supply chain tool.)

So, get the right people, set up processes that take advantage of available tools, and choose the right tools (software) to get the job done most effectively.

[…] Beware Supply Chain Excel Users—YOU are DOOMED!!!! […]

“I am talking about multi-billion dollar companies (yes, that is a “b”) where their demand and supply planning is all done in Excel.”

Unless these multi-billion dollar companies are all on a slippery slope to catastrophic failure, which of course they may very well be, this quote appears to be telling us that multi-billion dollar companies can meet their demand and supply planning needs with Excel. Which kind of seems like an endorsement… (gd&r)

On the other hand, when the same safety stock is calculated within an application, it will provide visibility to outstanding supplies that need to be replenished; orders can be planned for production; and it can calculate how quickly organizations can turn a forecast into a deliverable product.

Excel is fully programmable - don’t be so blinkered!

I read this blog with interest and while I agree with most of the comments that excel is mainly an analysis tool.
Sometimes it is just so much quicker and easier to use for supply chain / business planning.
It is the ease of configuration. It doesn’t fit for everything that’s why you have SAP or similar.
But try getting the SAP IT Support team to make a change or provide a new report it takes an age.
So you rely on your trusty excel for the problems that suit it.
I’m not an employee of a massive global company but a significant one. I swear by excel for quick short term problem solving, managing immediate shortage situations, planning outages, predicting inventory levels. I manage inbound logistics for a single material £18M raw material contract using it. It never fails to deliver.
There is a place for SAP and a place for excel.
Excel is more a tool for the here and now planning while SAP is more a holistic model of your business, but it takes longer to configure.

I think for mid size companies and small companies where SAP is not implemented, Excel is the way out.