We found a great article by Adrian Gonzalez entitled 5 Reasons Why Excel is Champ of Supply Chain Apps. Over the past 15 years, we’ve seen so many companies relying on Excel to make early stabs at supply chain optimization. And, since we recognize that you supply chain “disruptors” will do just about anything to change the status quo to move the needle on continuous improvement, we applaud you.
In fact, Excel – coupled with it’s relatively powerful optimization engine, Solver, from our partner Frontline – is a great starting place for identifying supply chain optimization opportunities. It’s extremely accessible, virtually free and easy to collaborate, since everyone has it. So long as your not looking for near-real time planning and decision support, the optimization features are quite useful.
Of course,when you’re ready to take it the next level, there are some very good reasons to move beyond Excel. First and foremost, connecting your supply chain optioptimization software to your ERP data warehouse allows you to get a much more granular level of detail. And, a direct connection means that you’re not wasting hours – or sometimes days – extracting and shaping the data into a consumable form. It’s just there and ready to go!
Below is Adrian’s top 5 list as well as some of the limitations that she identified. There’s also a link to the complete article, which is well worth reading.
“I believe there are five main reasons why Excel remains the reigning champ of supply chain applications:
- It’s is easy to learn and use.
- You can quickly and easily configure it to your specific needs and preferences.
- It’s highly portable: you can use it almost everywhere, and share it easily with others.
- It’s ubiquitous: Almost everybody has it and knows how to use it.
- It’s inexpensive.
Of course, Excel has some significant drawbacks that limit its usefulness and value as a supply chain application, such as…
- You’re working with static data
- A macro is not the same as an optimization engine
- It’s not integrated with execution tools
- You often end up with multiple versions of the truth”