SCMS Software vs Spreadsheets: Managing the Supply Chain

February 28, 2024

SCMS software is becoming an increasingly popular tool that helps businesses better manage the supply chain. However, there are still many companies that are dependent on spreadsheets to manage all their important supply chain information and documentation.

So, what is the problem with using spreadsheets?

Although spreadsheets can be useful for planning, they are not a reliable method of managing the supply chain. On top of manual error, spreadsheets are time-consuming, labour some and generally an outdated form of supply chain management.

There is a common misconception that the old way is the best way—but not in this case. If modern businesses refuse to get on board with the latest technologies, they risk lagging behind their competitors. When it comes to effective supply chain management, supply chain management software (SCMS) is not just a solution; it’s a necessity.

Why do businesses still use spreadsheets to manage the supply chain?
What are the key problems with spreadsheets in managing the supply chain?
Why is SCMS Software more effective than spreadsheets?
Should you switch from spreadsheets to Prosure360?

Why do businesses still use spreadsheets to manage the supply chain?

Many businesses continue to rely on spreadsheets for supply chain management, with 67.4% of supply chain managers using them as their primary operational tool. The widespread use of programmes such as Microsoft Excel and Google Sheets can be attributed to their familiarity and ease of use.

Spreadsheets can be used offline, which can be beneficial in areas with limited internet connectivity or for businesses with strict data security concerns. When it comes to selecting qualified and reliable suppliers and contractors, many organisations are drawn to spreadsheets because of their familiarity and ubiquity.

Most employers and employees know how to use spreadsheets, which means they don’t require training. Also, spreadsheets are not generally a big investment, so they seem like the cheapest and easiest tool to use for managing the supply chain. Although SCMS software is much more effective, you need to make the case for investment to senior leaders.

Spreadsheets are appealing to many businesses because they are often included as part of productivity software suites that are free online. For many supply chain managers, this may seem like a cost-effective solution, particularly for smaller organisations. However, there are numerous disadvantages and risks to using spreadsheets for supply chain management.

What are the key problems with spreadsheets in managing the supply chain?

However, while spreadsheets offer a familiar and adaptable solution, they come with limitations. They are prone to errors, require manual effort, and lack integration with other software systems, making them less efficient. Much of the time, spreadsheets fail to scale alongside businesses as they grow and their supply chains become more complex.

Using spreadsheets to choose suppliers and manage the supply chain poses significant problems and risks for businesses. One of the key issues is the susceptibility to human errors, such as incorrect data entry or formula mistakes. This can lead to businesses working with the wrong suppliers and contractors. Research even suggests that 90% of spreadsheets contain human errors due to incorrect data entry or other manual mistakes.

When it comes to selecting suppliers, keeping data and information up-to-date is vital. The status of your current service providers could change at any minute, which means you always need to stay informed. For example, one of your suppliers could become financially unstable, which would put your business at risk. This means you need to find a simple way to stay informed about who you’re working with.

Benefits of SCMS Software

SCMS software offers a much more effective and reliable solution, particularly in helping you choose qualified and reliable suppliers and contractors with the right insurances and certifications. These software solutions are designed to automate and streamline the supplier selection process, saving time and driving efficiencies.

By leveraging advanced technology, supply chain management software reduces the risk of human errors, enhances data accuracy, and provides a comprehensive audit trail, thereby significantly mitigating the risks associated with manual spreadsheet-based processes.

Despite these drawbacks, spreadsheets are still used for supply chain planning , with many businesses continuing to use them for tasks such as evaluating suppliers. So, why is supply chain management software a better and more effective solution?

Why is SCMS Software more effective than spreadsheets?

Access to real-time data

Supply chain management (SCM) software offers a multitude of advantages over traditional spreadsheets. Its ability to leverage real-time data relating to suppliers and contractors is especially useful. Unlike static spreadsheet data, SCM software ensures that businesses have access to up-to-date information on supplier compliance certifications, financial health, and other qualifications.

This real-time visibility empowers businesses to make informed decisions and remain agile in managing their suppliers. This thereby reduces the risk of working with outdated or non-compliant partners. By harnessing the power of real-time data, SCM software enables businesses to proactively manage their supply chain, identify potential risks, and capitalise on emerging opportunities, ultimately enhancing the resilience, visibility, and profitability of their operations. Access to real-time data also allows for more accurate analytics reporting, enabling you to better track progress and monitor supplier performance.

Technological aptitude for reporting and sharing data

Given that spreadsheets can easily become out-of-date or inaccurate, it makes it difficult to share relevant data with those requesting it.

With real-time data and easy-to-access information, SCM software provides the perfect platform to communicate with stakeholders and share reports on suppliers and contractors. This intuitive software makes it much easier to find relevant information, so you don’t have to trawl through endless spreadsheets to find the data you’re looking for.

SCMS software makes it easy to share critical supplier performance and qualification data with internal and external stakeholders. This enhanced visibility and transparency enable businesses to build stronger partnerships with suppliers, improve collaboration, and drive informed decision-making.

Moreover, supply chain software offers comprehensive insights into supplier performance, risk exposure, and compliance status. These features empower businesses to identify trends, make data-driven decisions, and implement proactive risk mitigation strategies. By providing a centralised platform for analysing suppliers and contractors, SCM software equips businesses with the tools they need to optimise their supply chain operations and drive sustained growth.

Ability to scale

Supply chain software can handle larger datasets and adapt to the changing needs of growing businesses. Spreadsheets can work for smaller organisations with simpler supply chain needs. However, as supply chain management requirements become more complex and the organisation grows, dedicated SCM software becomes a more viable option.

Furthermore, SCM software is designed to accommodate the growing complexity of supply chains, a capability that traditional spreadsheets lack. As businesses scale and their supply chains become more intricate, spreadsheets often struggle to keep up with the increasing volume and diversity of data.

Supply chain management software is built to handle this level of complexity. It offers scalable solutions that can adapt to the evolving needs of businesses. When managing a larger network of suppliers and contractors, SCM software provides the flexibility and robustness required to support businesses as they grow.

Should you switch from spreadsheets to Prosure360?

The simple answer is—yes!

Prosure360 is a cloud-based supply chain management software designed to give you full visibility of your contractors and suppliers. Our supply chain management platform is intuitive and easy-to-use, meaning there is no need for complex training. The Prosure360 platform is just as easy to use as basic spreadsheets, but with much more functionality and real-time data at your fingertips.

Instead of spending hours combing through outdated supplier information, you can use Prosure360 to get all the information you need. This allows you to make an informed decision about who you work with.

Find out how to unlock success with Prosure360 and switch from spreadsheets to success by booking a demo today!

October 3, 2024

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SCMS Software vs Spreadsheets: Managing the Supply Chain

Why do businesses still use spreadsheets to manage the supply chain?