{"id":378,"date":"2016-01-25T11:08:56","date_gmt":"2016-01-25T11:08:56","guid":{"rendered":"https:\/\/www.mrpeasy.com\/blog\/?p=378"},"modified":"2020-08-03T08:45:14","modified_gmt":"2020-08-03T08:45:14","slug":"why-manufacturing-software-solutions-are-much-better-than-excel","status":"publish","type":"post","link":"https:\/\/www.mrpeasy.com\/blog\/why-manufacturing-software-solutions-are-much-better-than-excel\/","title":{"rendered":"Why manufacturing software is better than Excel?"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"720\" height=\"464\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2016\/01\/dashboard_s.jpg\" alt=\"manufacturing software dashboard\" class=\"wp-image-460\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2016\/01\/dashboard_s.jpg 720w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2016\/01\/dashboard_s-300x193.jpg 300w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/figure><\/div>\n\n\n\n<p>With the rise of IT in our everyday lives comes the dependence on certain tools, to communicate, to assist and to help us with work.\u00a0 In the early days many companies \u2013 although slow to adopt \u2013 found a piece of software that worked for them, they invested in it and became reliant on it.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p>With the rise of IT in our personal\nand business lives comes the dependence on specific tools to communicate,\nassist, and, in some cases, to do our work.&nbsp;In the early days, many organizations\nwere slow to adopt these tools, and once they found software that worked for\nthem, they invested in it and became reliant on it.<\/p>\n\n\n\n<p>There was not any particular type of\nsoftware. Companies bought whatever was available back in the late nineties and\ninto the early days of the millennium. Since they were happy and comfortable\nwith their choice\u2014or at least thought they were\u2014they stayed with it. Unfortunately,\nthat turned out to be a costly mistake since that so-called comfortable setup\nhas been draining their time and resources. <\/p>\n\n\n\n<p>By far, the most common culprit has\nbeen Excel. It became the go-to software for everything related to business\nmanagement, with many small to medium-sized (SME) manufacturers using it as\ntheir primary&nbsp;<a href=\"https:\/\/www.mrpeasy.com\/manufacturing-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">manufacturing software<\/a>&nbsp;solution.&nbsp;And while it\nmight have worked well twenty years ago, today other options perform much\nbetter.<\/p>\n\n\n\n<p><strong>A brief history of SMEs and software<\/strong><\/p>\n\n\n\n<p>The reasons for the dependence on this\ngeneric piece of software for complex applications can be found in the earliest\nhistory of SMEs and software. In the seventies, SMEs were forced to use\nprograms such as Excel as their manufacturing software solutions simply because\nthey were priced out of the market for dedicated software. <\/p>\n\n\n\n<p>Only the largest enterprises could\nreach that deep into their pockets, for both the software itself and the exorbitant\nprices for installation and management. Add to that the extra cost of labor to run,\noversee, and maintain these systems meant that these specific solutions were\nsimply out of reach for most smaller companies.<\/p>\n\n\n\n<p><strong>Fast forward to 2020<\/strong><\/p>\n\n\n\n<p>Developments in technology have\nenabled companies to take advantage of cloud-based services to overhaul their\nmanufacturing software solutions. The accessibility of the software through the\ncloud eliminates the need for expensive servers and the army of staff required\nto service them, giving these companies a decided advantage over their\ncompetitors still using Excel.<\/p>\n\n\n\n<p>However, there are still some management teams that are unable or unwilling to see past the mistaken notion that using Excel is a money-saving option. Nothing could be farther from the truth! Using Excel is costing them considerably more than a subscription to a <a href=\"https:\/\/www.mrpeasy.com\/pricing\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">cloud-based MRP solution<\/a>.<\/p>\n\n\n\n<p><strong>Signs that your business has outgrown the capabilities of Excel<\/strong><\/p>\n\n\n\n<p>Many organizations work under the\nassumption that Excel is meeting their needs adequately, but the assumptions\nare usually wrong. Once they start analyzing whether or not their organization\nhas outgrown the capacities of Excel, it isn\u2019t long before they have an accurate\npicture and a different opinion. Here are some of the signs indicating that\nExcel is no longer meeting your company\u2019s needs:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The data you are collecting from\ndifferent sources (employees, customers, and suppliers) is being saved on\ncomputers and devices that are not related to each other and are stored in\nvarious locations.<\/li><li>Your employees have been spending\nmore time collecting and organizing data than they are working with it.<\/li><li>Lately, your company is seeing\nrequirements that go beyond the basic demand-supply models. As a result, you\nhave discovered that you are unable to respond efficiently to varying demand, changing\nmarket conditions, and business disruptions.<\/li><li>You recognize the need for a system\nthat offers integrated, live, real-time information that is accessible from any\ndevice, anywhere, and at any time.<\/li><li>Right now, you have limited access to\ninformation from mobile devices, meaning you can view it but not edit it.<\/li><li>Your current system cannot centralize\nand provide up-to-date information, which limits the activities of your staff,\nincluding your IT people.<\/li><li>Excel is keeping you from taking your\nbusiness to where you want it to be, based on pre-established KPIs.<\/li><\/ul>\n\n\n\n<p>Many organizations have been\ntransitioning from Excel to more advanced ERP business applications that can be\ntailored to their unique business models. To help you understand why, here is a\nhead-to-head comparison of the two solutions.<\/p>\n\n\n\n<p><strong>Excel vs. enterprise resource planning (ERP) solutions<\/strong><\/p>\n\n\n\n<p>Many companies continue to rely on\nExcel to run their businesses. It\u2019s not hard to see why since Excel is easy to\nuse, and employees are familiar with it. It is a very good business tool that\nallows them to store and manipulate data. <\/p>\n\n\n\n<p>That being said, however, Excel is\nnot nearly powerful enough for a busy manufacturing enterprise. There are too\nmany issues with it, including security, accuracy, efficiency, and that\nall-important human error factor. With Excel, you have less control over data\nand information, which your business needs for its processes and that you rely\non for your decision-making.<\/p>\n\n\n\n<p>ERP systems, on the other hand, use\nrelational databases that can provide so many benefits that include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>A complete view of your operations in\nreal-time<\/li><li>Inventory control (lower inventory\nlevels without stock-outs)<\/li><li>Project management<\/li><li>On-time deliveries<\/li><li>Analyzing KPIs<\/li><li>Automatic parts ordering<\/li><li>Creating bills of materials<\/li><li>Performance forecasts<\/li><li>Warehouse management<\/li><\/ul>\n\n\n\n<p>And this is just a partial list of\nthe typical features you\u2019ll find on an ERP solution. But let\u2019s not forget one\nof the most prominent advantages that ERP can offer: mitigating human error.<\/p>\n\n\n\n<p><strong>To err is human<\/strong><\/p>\n\n\n\n<p>Errors are more prevalent in systems\nthat have an abundance of the human touch. And recent studies indicate that\nExcel is especially susceptible to human error. One such report from the\nUniversity of Hawaii shows that 88% of spreadsheets contain errors, and another\nfrom Coopers and Lybrand found that 90% of all worksheets with 150 rows or more\nheld mistakes.<\/p>\n\n\n\n<p>Excel is more vulnerable to human\nerror because it is a manual tool. Since it isn\u2019t centralized and integrated\nlike an ERP system, multiple departments in your organization will be relying on\ndifferent sets of Excel spreadsheets that contain much of the same data.<\/p>\n\n\n\n<p>The same data being entered multiple\ntimes into multiple spreadsheets is not only a waste of labor, but it also\nmeans more opportunities for data entry errors. And after a set of spreadsheets\ngets passed around, you lose all control over them.<\/p>\n\n\n\n<p>\u200dAnd because there is no single\nsource for your data&#8211;as you would have with an ERP system&#8211;you can\u2019t be sure\nwhat changes have been made after a spreadsheet has been shared, or if everyone\nis working off the right set of data. For instance, the shop floor could be\nrelying on an old set of spreadsheets or some that are filled with errors, in which\ncase there will be an excessive waste, and you will be disrupting your\nproduction schedule.<\/p>\n\n\n\n<p><strong>ERP puts you on the path to efficiency<\/strong><\/p>\n\n\n\n<p>ERP solutions give you a single\nsource of real-time data for your entire organization to use, reducing the risk\nfor human error, and ensuring that everyone is working from the most recent and\naccurate data. <\/p>\n\n\n\n<p>Here is an example: Let\u2019s say you\u2019re\nwriting all of your quotes in Excel and manually creating sales orders from\nthese quotes. These quotes or orders are created sheet by sheet, and the\ninventory is managed when an employee goes in and manually updates the\ninformation each time. Add to that the risk of accidentally deleting Excel\nfiles or the system crashing.<\/p>\n\n\n\n<p>An ERP system converts quotes into\nsales orders and adjusts the inventory levels automatically. There is no need\nto manually enter data multiple times or share spreadsheets with several\ndepartments. The entire organization can access and rely on the same live data.\nAnd a cloud-based ERP solution has built-in controls that manage multiple\nusers, and it is designed to support both on-site and remote workers.<\/p>\n\n\n\n<p>ERPs allow companies to have full\nvisibility into all their processes through real-time dashboards. Today, businesses\ncan acquire substantial amounts of data every day. An ERP system can use this real-time\ndata efficiently to provide insights into an organization\u2019s performance and help\nthem to improve those processes and their decision-making capabilities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With the rise of IT in our everyday lives comes the dependence on certain tools, to communicate, to assist and to help us with work.\u00a0 In the early days many companies \u2013 although slow to adopt \u2013 found a piece of software that worked for them, they invested in it and became reliant on it.<\/p>\n","protected":false},"author":1,"featured_media":462,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[90,94],"tags":[4,11],"class_list":["post-378","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-choosing-a-software","category-tips","tag-manufacturing-software","tag-manufacturing-software-solutions"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why manufacturing software is better than Excel? - MRPeasy software<\/title>\n<meta name=\"description\" content=\"Many manufacturers have already found a piece of software that worked for them and became reliant on it. 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