No place for Excel in 21st-century purchasing.
The key points
- Excel is a good analysis tool and a poor planning system.
- Anyone who steers order quantities via maintained spreadsheets builds in single-person monopolies, error sources and standstill on every holiday.
- The alternative isn't a big project: clean ERP master data plus an inventory optimisation that computes per article nightly.
- Excel keeps its place: for ad-hoc analyses, not for the daily ordering decision.
What Excel does in purchasing.
Honestly: a lot. Excel is flexible, everyone can use it, and for a one-off analysis, a supplier comparison or a quick coverage analysis it's unbeatable. The problem isn't the tool. The problem begins when the analysis becomes a process.
Where it tips over.
As soon as order quantities come from a spreadsheet daily, you're steering your warehouse with a tool without checks, without history and without a cover arrangement. Formulas only one person understands. Copy-paste errors that only surface in the shortage. Data that was already out of date at export. And ordering knowledge that leaves the building with every staff change. That's not an Excel weakness, but a misuse: a spreadsheet is not a planning system.
What instead?
No ERP switch and no big IT project, but the division of labour that plays to each strength: the ERP keeps the master data, an inventory optimisation computes forecast, safety stock and order proposal per article nightly, and purchasing decides the exceptions. The three steps behind it are documented, traceable and hang on no single person. Excel stays alongside for what it was built for: answering questions, not triggering orders.
Keep reading
ABC/XYZ analysis: a steerable assortment in 4 steps.
Inventory & PurchasingNever out of stock again: automatic demand forecasts in EazyStock.
Inventory & PurchasingFrom slow movers to fast movers: why you shouldn't procure every article the same way.
Inventory & PurchasingInventory forecasting: forecasting with fluctuating demand.
Inventory & PurchasingInventory optimisation in 3 steps: forecast, optimisation, procurement.
Inventory & PurchasingInventory planning: the second step in inventory management.
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