Are You Still Using Excel for Inventory Management?

It’s a natural mistake to make: thinking that you can manage inventory using an Excel spreadsheet. The problem is that relying on Excel spreadsheet templates means that your business will never be as profitable as you would like it to be.

That’s because there are two big misconceptions about using Excel — one is that Excel is so popular, that it must be cheap, simple and easy to use for business owners. The second big misconception is that business management software is way too expensive, complex and unnecessary for small business owners.

You can see the problem here, right? The first misconception convinces you that Excel is “just good enough” to work. And the second misconception convinces you that any other option to Excel must be overkill.

If you can get past these two misconceptions, though, you can grow both your productivity and profitability! When it comes to implementing an inventory management system you need to take a big picture view of your business. Making sure that inventory is properly managed and that inventory levels are always matched up with changes in supply and demand is vital if your business is going to succeed in a hyper-competitive, global marketplace.

By going beyond Excel spreadsheets, you will be better able to thrive in a global business environment, where currency rate swings and other factors play a role in pricing and logistics. In short, your inventory is connected into a massive global supply chain, whether you want to recognize it or not.

You will also gain more insight into the real-time condition of your business, thanks to sophisticated forecasting tools that are baked into many business management software solutions. With Excel, you are narrowly limited to the here and now, and that doesn’t help your business in the future.

By moving beyond Excel, you will also be able to optimize your inventory. That means no more overstocks, and no more stock outs. Overstocks are particularly important to avoid, since they represent a cash flow drain on the business (all that cash to purchase all that inventory!), as well as a massive case of inefficiency stemming from all the labor and storage costs to manage that inventory. Let’s face it, those products should be on store shelves, not waiting in a warehouse somewhere.

With an integrated accounting and inventory management software, you can become the paradigm of the just-in-time enterprise, getting exactly the right amount of inventory at just the right time.

The bottom line is that when it comes to managing your inventory, saving money upfront by using Excel will only lead to unexpected costs on the backend. You will find yourself always one step behind the curve. So avoid the inefficiencies, errors and delays caused by using Excel for inventory management. By switching to Spire, you will be able to optimize your inventory levels and lay the foundation for an efficient, profitable business!

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