From excel to excellence: how to optimize logistics and supply chain

Excel, or not Excel, that is the question

According to a McKinsey survey, 73% of managers rely on spreadsheets to manage supply chains. As a matter of fact, they are simple, familiar, and inexpensive, so it is not surprising that there are still many companies using excel files to manage logistics and supply chain processes: they seem like the ideal tool, but the truth is that they hide limitations that can undermine efficiency, accuracy, and collaboration, hindering business growth as a result.

Today, in order to meet the growing challenges of the market, it is essential to equip oneself with tools capable of optimizing processes and increasing competitiveness; on the other hand, one of the main obstacles to the adoption of digital tools in companies is precisely resistance to change, often linked to a perceived comfort in using traditional systems such as spreadsheets. To overcome this barrier and reap the benefits of new technologies, it is first and foremost important to create awareness within the company about the limitations of current tools and the tangible benefits that digitization can offer.

Hence, let’s analyze together why it is time to replace spreadsheets and adopt more innovative digital solutions, with some practical examples.

Why your supply chain deserves more than a spreadsheet

1. Errors and more errors

Manual data entry is a source of errors that can have costly consequences. For example, an error in recording the day or time scheduled for delivery of goods could result in delays or, worse, the interruption of production due to lack of materials. In addition, incorrect formulas in spreadsheets can skew forecasts or cost calculations, with negative impacts on budgeting or planning.
“Errare humanum est”, but to persevere is diabolical, as the ancients teach us: thanks to automation, digital tools ensure greater accuracy, reducing the risk of errors (and horrors) due to manual data entry. Not only does this improve the reliability of information, but it also saves valuable time, freeing staff from repetitive, time-consuming and unrewarding tasks.

2. Scaling your business shouldn’t feel like climbing

As supply chains become more complex, Excel struggles to handle large amounts of data. For example, a company expanding internationally, expanding its network of carriers, may find itself with multiple spreadsheets, pivots and macros that become slow and difficult to manage or update, turning the climb to the top into a grueling climb. Cloud-native platforms, on the other hand, are scalable, designed to grow with the business and handle large volumes of data without compromising performance, easily integrating with other business systems. For example, a freights order management system integrated with your enterprise ERP can speed up load allocation times and optimize freight costs.

3. Trust is good, but collaboration is better

Sharing an Excel file among several users, perhaps even outside the company, is often a delicate operation that can generate confusion. Imagine using a spreadsheet to manage the inbound and outbound flows of the company’s different warehouses: if multiple users update the file at the same time, it is easy for overlapping changes to occur, causing possible disruptions in loading and unloading. Digital platforms, on the other hand, centralize data and make it accessible from anywhere, while also allowing information to be shared with various stakeholders based on their authorization levels, resulting in improved collaboration among all actors along the supply chain. By increasing the visibility and transparency of their supply chains, companies can also improve customer satisfaction. One example is the implementation of automated notifications to provide customers with real-time updates on their shipments’ status.

4. How safe are your data?

A spreadsheet offers no protections against unauthorized access or data loss, putting sensitive information such as freight rates, customer details, and logistics strategies at risk. For example, a spreadsheet containing confidential information could be accidentally sent to the wrong recipient, causing potential reputational damage, or the file could be damaged or deleted by mistake with no chance of recovery. Luckily, these these risks can be a thing of the past: digital solutions integrate advanced security protocols, such as multi-factor authentication and encryption, to protect sensitive data and reduce the risk of breaches, as well as provide for cloud backups and other disaster recovery systems to ensure business continuity and recover critical data in case of problems, which is especially critical for those companies that need to comply with NIS 2.

5. From data to decisions

Having access to real-time data allows you to react proactively, gaining agility, but spreadsheets do not offer immediate updates, and this can cause inefficiencies or simply missed opportunities: how to optimize supply chain planning without up-to-date data on transportation or inventory status? Digital solutions, on the other hand, allow real-time monitoring, with automatic notifications that enable timely and accurate reactions. In addition, with customized dashboards and business intelligence tools, companies can analyze large volumes of data to identify trends, forecast demand and optimize inventory.

6. There is no operational efficiency without analytics

Excel has great analytical capabilities, yet these now appear limited in the face of the power of artificial intelligence-based systems. In markets perpetually searching for a balance between rising costs and fluctuations in demand, advanced analytics tools represent a decisive competitive advantage. For example, digital solutions use artificial intelligence algorithms to monitor logistics KPIs or to generate accurate forecasts, which help optimize labor time and allocate resources more effectively, improving operational efficiency and contributing to enterprise profitability.

7. The costs of inefficiency

Although Excel seems cheap, it hides costs that can also be considerable. Just consider the man-hours spent by staff on manually entering and updating data that could instead be handled by automation or the costs generated by an error in data entry (the time wasted identifying and correcting the error as well as the costs associated with the consequences caused by the error). By digitalizing processes, these wastes can be eliminated: resource utilization can be optimized and wasted time reduced, improving efficiency and increasing return on investment (ROI). For example, a time slot management system can automate the scheduling of loading docks, reducing truck waiting times by up to 70% and saving on demurrage expenses.

Bridging the gaps for future-ready logistics

As reassuring as it may be to continue using well-known tools such as spreadsheets, the transformations in our society are advancing ever faster, making the digital transition not a desirable technological renewal but a necessary strategic step toward more efficient, resilient and innovative business management.

The complexity of modern supply chains requires the use of appropriate tools, and the latest digital solutions are a real game changer for logistics and supply chain managers, who must be able to make informed, strategic decisions quickly and in uncertain environments. With real-time data and advanced analytics, managers can monitor every stage of processes, identify critical issues and take prompt action, increasing operational control. Digital platforms foster smoother collaboration between internal teams, other business functions, suppliers and customers, eliminating information silos and improving transparency.

Leaner operations and streamlined processes not only support business growth, but also help meet the challenges of a changing marketplace, paving the way for a future demanding greater efficiency, flexibility and collaboration from supply chains.

CargoON: The digital platform to transform logistics

CargoON offers a suite of scalable and intuitive cloud solutions to help manufacturing companies and retailers achieving end-to-end digital supply chain to optimize logistics flows, improve partner collaboration and increase operational efficiency.

🟢🟢 Ready to ditch spreadsheets?

Take a leap into the future with CargoON: Discover how to transform your logistics and supply chain with tailored digital solutions.

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