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Why Excel Is Bad

You may have heard that Excel is really helpful for your business. Sometimes you may use Excel to perform your business inventory and find it successful too. Yes, we too agree, because during your beginning stage you can rely on Excel for your inventory management needs. But when your business starts growing, it will be a headache because you will start to understand its real limitations.

You can move to efficient and affordable inventory methods to escape the consequences of inventory counts which are not accurate. If you haven't thought of moving yet, then it could badly affect your profit and your customers' experience.

The most important two issues which Excel inventory users suffer are inaccurate data entry and inadequate forecasting.

MISTAKES COST MONEY

If your business is big with large inventory in Excel and it is shared to different locations, tracking of this will be a great risk and the possibility of data entry errors cannot be avoided. You or your staff will be wasting time on tracking errors. Errors can be fixed if tracked it properly, so if you fail to track, then the result will be none other than business loss. Errors may be workbook totals or even your inventory details like item location, price etc., and just imagine if it doesn't match with your warehouse inventory. Sometimes if it persists, you won’t be able to control or solve these issues thereafter.

If your business is big with large inventory in Excel and it is shared to different locations, tracking of this will be a great risk and the possibility of data entry errors cannot be avoided. You or your staff will be wasting time on tracking errors. Errors can be fixed if tracked it properly, so if you fail to track, then the result will be none other than business loss. Errors may be workbook totals or even your inventory details like item location, price etc., and just imagine if it doesn't match with your warehouse inventory. Sometimes if it persists, you won’t be able to control or solve these issues thereafter.

FORECASTING INABILITY COSTS MONEY

You cannot predict that your Excel workbook will always sync. If syncing fails, there will be a mismatch between your actual inventory counts and the Excel workbook. If the count is low, then the forecasters, like supply and demand analysts or inventory planners, will place fewer orders based on the information available in the Excel workbook.

If you receive an order for a particular item and you don’t know it is in stock due to the failure of syncing of the Excel workbook and you spend money on it, then you are wasting your money. The real problem is that you won’t know that you have purchased an item that has been overstocked!

Effective inventory management will help you to identify the real stock which you should keep and provide the ability to forecast the inventory needed to meet your clients' orders.

HOW DO YOU TRACK INVENTORY?

How can you determine that your profit and loss depends on your inventory tracking method? If you don’t have a perfect inventory method you may fail to order the necessary inventory because you are not aware of it. This may result in losing your customers which results in loss. In the same way, if you order too much inventory, you have to provide discounts to clear the stock, again this will also result in loss.

So don’t hesitate to move to a better alternative to Excel. If you analyse how much money you are losing due to loss of sales and loss of actual inventory and compare the loss with the cost of investing in an inventory management solution, you will realise how it can benefit your business and save you from falling into loss. 15.3 percent of errors occur from administrative and accounting errors.

INVESTMENT REWARD

If you think Excel is easy, cost effective and convenient to manage your growing business, it will cost you more money when your business grows. So it is time for you to transit from Excel to an inventory management solution to enjoy a quick return on your investment.

Are you currently thinking of switching to another great, cost effective inventory management system to eliminate the negative effects of inaccurate inventory counts? If so, ISH Technologies can help you. You can use our Custom Inventory Management Software , which feels just like you are using Excel. How can it be possible? It is simple. Actually it is our software itself which is designed like Excel for your convenience because we know that it is a program that you are very familiar with. Use it and enjoy the benefits in a more perfect way than ever before!

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