May 4, 2016
Does your inventory spreadsheet add up?
Managing an inventory spreadsheet means you need to manage lots of data. If you plug in quality inputs, then you’ll get decently reliable outputs; that’s not too complicated, right? Well, you might be missing a few important items when it comes to finding and using quality data. In fact, this could be the key to getting going transforming your inventory and saving major time and cash.
The inventory experts at The Inventory Mentor just put up a new post in their series on the problems with inventory spreadsheets. This write up focuses on all the little ways your data can be off, giving you faulty forecasts and off-kilter purchase orders.
One problem highlighted in the post is synchronization. Having your data synced up correctly can make all the difference in the world, but are you sure your process keeps everything synced up? When you extract stock balances and outstanding purchase orders, are they correctly synchronized?
Issues like synchronization and minimum order quantities can easily trip up your ordering process. There’s also the matter of a robust set of inputs, including lead time, classification, safety stock levels, and order cycle. The odds are that your spreadsheet simply can’t handle it.
Coming up, The Inventory Mentor will be looking deeper at the increased risk that comes from adding the necessary layers of complexity to your spreadsheet. Be sure to return to our blog for more on that key topic.