“95% of companies report that they are using spreadsheets to augment their ERP system for planning. I asked a good friend that I have known for 20 years to share his experiences with the proliferation of work-arounds and ad-hoc planning “solutions” that we tend to see in most companies that run MRP. My friend cannot specifically name the products his company makes because the market is dominated globally by only two players (he works for one of them). The sales of this company are between $100M – $500M (US) annually. Read about his experiences and let me know if you can relate.”
Sourced through LinkedIn Pulse
Michel Baudin‘s comments:
The issues listed by Chad Smith’s friend are not specific to Excel. His company’s MRP or ERP system does not meet the functional needs of the Planning Department, and its members supplement it by crunching data extracts from it on their personal systems, in their own ways. The manager does not control what formulas are used, and does not know how diligent each member is at keeping the data up do date. The planners happen to be using Excel, but these problems would not be solved if they replaced Excel with any other single-user tool: they should all work on the same data, not individually ordered extracts of inconsistent vintage, and the planning logic should be shared, not buried in private spreadsheets.