Merchandisers beware: companies could lose billions because of crappy spreadsheets

The Spreadsheet: a program we all use to organize, analyze and store data in a tabular form. Merchandisers cherish their spreadsheets as we forecast, plan, calculate, execute and analyze all of our most crucial data. Spreadsheets hold enormous power as we usually make our most critical merchandising decisions off what we interpret. However, with the vast amounts of consumer data, campaign cycles and products spreadsheets merchandisers have grown to be victims to spreadsheets errors.

In a recent report put out by The Telegraph UK,  claims stupid errors in spreadsheets could lead to Britain’s next corporate disaster. One in five large businesses have suffered financial losses as a result of errors in spreadsheets, according to F1F9 . In total, spreadsheet calculations represent up to £38bn of British private sector investment decisions per year. Yet 16pc of large companies have admitted finding inaccurate information in spreadsheets more than 10 times in 2014.

spreadsheet_merchandising

The article focuses on financial institutions but retailers are just as much in jeopardy, many retailer laggers are still using spreadsheets to manage important processes in the supply chain, such as assortment planning, pricing, logistics and space planning. Mistakes in any spreadsheet calculation can have a bullwhip effect through entire company and cost retailers financially. Merchandisers especially should consider abandoning spreadsheets and invest in more automated, less error-prone systems. Systems that can offer business intelligence, remove human calculation errors, provide more optimal insight and execution of products and promotions.

Please click here for the full article in the Telegraph

 

 

 

Written by: Rebecca Shirazi

Rebecca Shirazi is the Marketing Manager at RBM Technologies. She is a frequent contributor to MerchandisingMatters.com, where she writes in the areas of marketing, merchandising and supply chain.

2 thoughts on “Merchandisers beware: companies could lose billions because of crappy spreadsheets

  1. This is the perfect website for anyone who wants to find out
    about this topic. You know so much its almost hard to argue with you
    (not that I really would want to…HaHa). You certainly put a new
    spin on a topic that has been discussed for years. Excellent stuff, just great!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s