It is not standard nor advisable to use spreadsheets as the main manager of your inventory. In other words, spreadsheets aren’t the boss nor should they be.
When it comes to managing inventory, businesses have two main options: spreadsheets and inventory management software. While spreadsheets have been used for decades to manage inventory, inventory management software offers a number of advantages that spreadsheets can’t match. Here are some of the disadvantages of using spreadsheets instead of inventory management software.
- Limited Accuracy: Spreadsheets are prone to human error, and mistakes can be made easily. With inventory management software, errors can be minimized and data accuracy is ensured.
- Lack of Automation: Spreadsheets can’t match the automation capabilities of inventory management software. Automated processes such as order fulfillment and stock replenishment can help reduce costs and improve customer service.
- Poor Visibility: Spreadsheets make it difficult to get a real-time view of inventory levels and stock movements. Inventory management software offers greater visibility, allowing you to quickly and easily identify what’s in stock and what needs to be ordered.
- High Maintenance Costs: Spreadsheets require manual data entry and regular maintenance, so costs can quickly add up. On the other hand, inventory management software can automate data entry and other processes, reducing maintenance costs.
- Inadequate Reporting: Spreadsheets don’t offer the same level of reporting capabilities as inventory management software. With comprehensive reporting features, inventory management software can provide insight into stock levels, sales trends, and other key areas.
- Poor Security: Spreadsheets can be easily accessed and data can be manipulated. Inventory management software offers greater security, with user permissions and other features to protect data.
- Missing Integrations: Spreadsheets are generally stand-alone applications and don’t offer the same level of integrations as inventory management software. This can create a number of issues, such as lack of integration with other systems and manual transfer of data between different applications.
Overall, spreadsheets are not a suitable solution for managing inventory. Inventory management software offers a range of advantages that spreadsheets can’t match, such as greater accuracy, automated processes, and better reporting capabilities. With the right inventory management software, businesses can enjoy improved efficiency, better visibility, and lower costs.