Supply Chain Secrets #71: Excel is Not a Dirty Word in Supply Chain

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Often I hear people claim derisively that a supply chain team is managing data using a spreadsheet. This proclamation is met with head shaking and embarrassment. There will be hollow claims that this cannot continue and that some vague action will be taken. I for one am not embarrassed to proclaim my fondness for spreadsheets and I will rise to their defense. However, you should take into account that in addition, I will admit to enjoying TV, eating Cheese Doodles, and reading gossip magazines. I know no shame. While I realize that spreadsheets are a poor way to coordinate routine data, they do have other very positive traits.

Living with Your Data

Developing a spreadsheet requires that you find the data, organize it, use formulas to analyze the information, and troubleshoot the data and your spreadsheet. Sometimes it takes a while to see a pattern or develop an idea. If the same information simply spits out of ERP systems, there is little pain or attachment to the data. It easier to miss trends, spot bad data or re-call the information when it might be useful. It’s like the knowledge you gain from solving a problem versus cheating and reading through the solution in the back of the book.

Sharing Well With Others

People can share spreadsheets easily. Other people can manipulate the data themselves and reach their own conclusions. This is more difficult to do with a canned report or an automated analysis tool. Often the best information in a spreadsheet is in the hidden rows and columns.

All Seeing

The other attribute I like about a spreadsheet is the ability to see all the data at once. While it may obscure some of the significant bits, it allows you to notice how the numbers move together. I can easily move them around to get different views. This helps me postulate solutions that take into account second order effects.

Start Spreadsheeting!

The reality is that Excel is a powerful tool used to explore data and develop strategies to mold your supply chain. Don’t let the naysayers fool you. It is very important to become comfortable creating and using spreadsheets if you are in the field. Don’t be discouraged if you are not a super user. Keep working with it, ask people about their favorite spreadsheet tricks and research your questions on the web. In the end, you will understand your data better and become a stronger voice at the table.

About the Author

Tom Petersen is the Managing Partner of ThreeCore, an operational consulting firm in Beverly, Massachusetts.  Tom consults for multinational companies engaged in the design and manufacture of high-tech products. His team is dedicated to helping companies create competitive advantages using innovative strategies and process-driven improvement. For more information go to www.threecore.com or follow Tom on twitter @3CoreConsulting.