ERP and Excel: Part II

      In Part I, we discussed the proper use of Excel with ERPs. We advised against using Excel to manage planning and other operational transactions. In Part II, we will backtrack on that advice, a little, and discuss when it is actually appropriate to use Excel spreadsheets for operations planning and other transactions.

      Many organizations have ERP systems that have either not bought all the supply chain modules or if they have not activated them. This is most common in Demand Planning, Quality Management, Inventory Optimization to name a few. The base functionality was included in the go-live while the more advanced modules are not used. This is not because the supply chain does not want the advanced functionality.

More often then not, it all comes down to budget. At the onset of launching the ERP or upgrading it, functionality is excluded for lack of resources to purchase or implement it.  After go-live and stabilization, budget remains to be an issue. Organizations manage scant IT resources closely and prioritize proposed projects. The supply chain voice and mandate is not often forceful enough to get their projects on the budgeted grid.  Upgrade and sales force and finance functionality take precedence over most supply

chain projects.

     As we have seen this go one for a few years at some companies, we recommend to clients to actually seek affordable add-ons or develop spreadsheets to manage what they have been trying to get on the IT grid. We know that spreadsheets are cumbersome from a data management standpoint. They simply require more attention, tweaking, and diligence but the trade-off more advanced functionality may be worth it.  So, if the capability is there to creat the spreadsheet and to effectively manage the data

interface with the ERP, it may be the best alternative for the organization.  There is a surprising dichotomy that many doing this run into. While budget constraints keep postponing supply chain projects, the is a clear IT policy not to use Excel spreadsheets... to achieve the functionality that are in modules that are never approved and funded for implementation. Odd but true. The spreadsheets are created and used clandestinely at any rate. At a certain point, there is no sense in waiting any longer.

     There are also third party options. There are relatively inexpensive cloud based systems that provide the advanced functionality at a fraction of what implementing the ERP equivalent would cost. Once the data protocol for download and upload is established this new breed of cloud based software is provides the needed functionality in a seamless manner. It is almost like "there's an app for that."

     Our sister company Cadent Resources, Inc. has such a product in their DemandCaster offering. This powerful tool provides demand and supply planning as well as S&OP management in one tool providing capabilities that do not exist in some ERPs and well below the cost of similar modules in others.

     Are you managing parts of your demand and supply planning in spreadsheets for the reasons stated above? Do you have trouble getting your projects on the IT grid?  Share your experiences.  We would love to hear.

Comments

[Stoven Shamrock]

Many organizations have ERP methods which have both not bought all the availability chain modules or if they haven't activated them. This is commonest in Demand Planning, High quality Management, Inventory Optimization to call a couple of.
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