Excel is widely available, flexible, and powerful. Perfect for beginnings. Therefore, many companies export data from their ERP system into Excel to plan stock levels and manage purchasing decisions.

However, as the number of SKUs increases, demand becomes less predictable, and margins tighten, Excel tables begin to show their limits. Spreadsheets are no longer sufficient to support growth.

Here are five reasons why Excel will not scale with you, so you can recognise when you are about to outgrow Excel.

1. Functionality of spreadsheets becomes dependent on a few people

Each team builds spreadsheets differently, according to their own needs and level of experience. Over time, formulas, columns, and links evolve, creating a non-standard system that only one or two people fully understand. If those people leave, fall ill, or take time off, the spreadsheet becomes unsupported.

2. Errors multiply as complexity grows

A spreadsheet managing hundreds or thousands of SKUs requires continuous manual maintenance. Even a small mistake in a formula can distort forecasts and lead to poor ordering decisions. Large files are also prone to corruption, and keeping them accurate demands constant control.

3. Spreadsheets fail to model real-world complexity

Inventory planning depends on multiple variables: product margins, demand patterns, seasonality, lead times, supplier performance, and service-level targets. Excel is effective for tracking a single dimension, such as sales or stock, but it struggles to process all these factors together. The result is an oversimplified model that ignores product differences and leads to inaccurate forecasts.

4. Manual work continues to grow

When systems do not generate actionable insights, the burden shifts to the team. Collecting, checking, and analysing data manually consumes valuable time and often requires working across multiple files. Such work slows decision-making, increases the risk of human error, and prevents planners from focusing on strategic improvements such as supplier performance or margin optimisation.

5. New changes require starting over

If part of your growth strategy includes reducing warehouse stock, adjusting service levels, or testing new replenishment policies, existing spreadsheet models rarely adapt. Each new objective means building a new version from scratch, increasing workload and introducing new errors. In a volatile market, this lack of flexibility becomes a serious barrier to growth.

Conclusion

Spreadsheets are powerful, but they were not designed to handle the complexity, volume, and speed required in modern inventory management. If these challenges sound familiar, it may be time to move beyond manual tools.

By connecting directly to your ERP system, Autopilot plans orders and ensures you always have the right stock at the right time, while keeping costs under control. Read how here.