The Hidden Threats of Spreadsheet-Based Supply Chain Planning

October 12, 2023

Over the last few decades, the global supply chains have evolved in extraordinary ways, forcing rapid change in just about every sector. And yet, many companies today are still applying outdated methods to their supply chain planning. According to a 2020 survey conducted by Modern Materials Handling, a staggering 45% of supply chain professionals reported are using mostly or entirely manual processes. At a time when supply chains all over the world were being rocked by the pandemic, it’s hard not to dwell on how digital and automated processes would have helped companies to sense and respond better to swings in market demands, or issues of raw material and product scarcity, shipping delays, and labor shortages.

Having come out on the other side — with lessons freshly learned — 64% of companies say they plan to accelerate their digital transformation as a result. For those still dependent on manual processes, we want to stress the sense of urgency to evolve with the needs of today’s volatile marketplace and the threats hidden within traditional supply chain management systems.

5 Risks Introduced by Manual Supply Chain Planning

Discover some of the biggest threats to supply chain management, posed by manual methods like spreadsheet-based planning.

You’re opening yourself up to errors

Spreadsheets are managed by humans and humans make errors — a lot of them. In fact, according to the Corporate Finance Institute, errors in spreadsheets happen at an estimated rate of 88%. The errors resulting from manual management can create gaps, leave you vulnerable to risks, and limit your scalability.

You spend more time on the tactical aspects of planning than the strategic

When spreadsheets are used as the primary tools for planning, most of a planner’s time is spent on “keeping the numbers right” – i.e., making sure that the numbers add up and they are current leaving very little time for the planner to evaluate scenarios and alternatives. This results in only attending to fewer product categories than you would otherwise like to.

You are not able to collaborate cross-functionally to generate consensus plans

Circulating spreadsheets around to get inputs from functions like sales, marketing or a channel partner is both time consuming and error prone. Being able to design collaborative workflows and allow multiple parties to provide inputs easily is a “must have” in today’s dynamic supply chain environments.

You are not leveraging valuable data that is available to you

Spreadsheet based planning does not allow you to integrate data that is available from external; sources (channels and third-party data providers) as well as internal sources (ERP, CRM etc.) in a timely manner to support better demand and supply planning. For example, today highly valuable channel level sales and inventory data can be acquired from channels like Amazon, Walmart, and Kroger — use of this data in demand, inventory and supply planning can help enterprises of all sizes to offer higher service levels even while carrying lower inventory.

Your (slow) reaction time might be damaging customer experience

In today’s competitive environment, where any product category can have more than a handful of brands, being out of stock even for a few days could result in loss of market share. Ability to react quickly to demand and supply changes will require more frequent planning runs with the most current data.

The better option? Make the smart shift to AI-powered solutions

Despite their superpowers to predict the ebb and flow of a supply chain, professionals will always be dealing in a world where predictions can be upended at any moment. The best way to contend with the uncertainty is to fortify your supply chain with solutions that can protect you from vulnerability, help you achieve greater precision, and accelerate your growth.

According to a report from Ernst & Young, “the pandemic forced supply chains to develop new agility to carry forward — for example, many organizations are building advanced analytics to do dynamic SKU rationalization rather than doing one-off spreadsheet exercises.”

Setting the stage for process changes like these are AI and automation solutions that deliver enhanced visibility and optimized efficiencies end-to-end. Firstshift.ai is leading the way with an AI-powered, cloud-based demand planning software and supply chain planning platform. Firstshift.ai offers companies the power to more accurately forecast customer needs, sense and respond to market signals faster, and achieve a consensus demand plan with simplified cross-organization collaboration.

Ditch the spreadsheets and make the smart shift — schedule a demo to learn more.

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March 18, 2025

Firstshift Launches Pluto, an AI-powered copilot for Supply Chain Planning Excellence

Los Altos, California – March 18, 2025 – Firstshift, a leading provider of AI-powered supply chain planning software, today announced the launch of Pluto, a Generative AI-powered planning copilot that assists planners with their decisions and tasks.

With options to leverage natural language query capabilities and an intuitive query builder, Pluto empowers supply chain professionals to gain critical insights faster, streamline decision-making, and optimize operations with unprecedented ease.

“Pluto is a game-changer for supply chain professionals,” said Hari Menon, CEO and Co-founder of Firstshift. “By making supply chain insights more accessible, actionable and accurate, Pluto allows planners to plan with confidence. With AI-powered insights at their fingertips, decision-makers can navigate supply chain complexities with greater speed and precision. Pluto is the first in the line of a series of AI-powered planning copilots and agents in our product roadmap.”

The flexibility of Pluto to operate in a natural language mode or the query builder mode makes it easy for planners to ask questions about their supply chain and get answers instantaneously. For complex and detailed analysis, Pluto’s query builder mode allows users to create complex queries effortlessly without requiring deep technical knowledge.

Supply chain leaders in enterprises are constantly challenged having to deal with shifting consumer demand, supply disruptions, and increasing operational complexity. Planners in their organization have to be agile to adjust plans, evaluate scenarios and make decisions based on insights derived from large volumes of data. Pluto changes the game by offering an AI assistant that compliments or extends a company’s supply chain planning team’s capabilities without adding staff or expertise. This is especially important as access to experienced talent and professionals with supply chain planning experience becomes increasingly competitive and difficult.

Pluto is available as part of Firstshift’s AI-powered demand and supply planning platform and solutions. Schedule a demo to see it in action and learn more about our platform’s solutions.

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Firstshift is an innovative provider of AI-Powered supply chain planning solutions for large and medium-size enterprises. Firstshift's customer base includes leading brands in CPG, Food & Beverage, Industrial products and Apparel & Fashion industries. For more information visit www.firstshift.ai.

Insights

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January 28, 2025

Unlocking Growth Opportunities with AI-Powered Demand Forecasting in the Food & Beverage Industry

From unpredictable consumer behaviors to supply chain disruptions, the challenges of demand planning are a delicate balancing act. Companies must adapt quickly to meet demand without sacrificing efficiency or profitability. AI-powered demand forecasting offers a game-changing solution, empowering F&B companies to make smarter decisions, reduce costs, and unlock growth opportunities.

Why Traditional Forecasting Falls Short

Conventional forecasting methods rely on few statistical algorithms applied on historical sales and shipment data and don’t account for :

Intermittent demand spikes
Volatile demand patterns
Unforeseen external factors, like weather and trends

These inaccuracies lead to either excess inventory of lost revenue.

How AI-Powered Demand Forecasting Makes a Difference

Leveraging machine learning and external signals, AI-driven demand planning dynamically predicts demand across product categories, markets, and supply chains. Key advantages include:

✅ Increased Accuracy: Attribute-based planning adjusts forecasts based on real-time changes like promotions, market trends, and consumer behavior.

✅ Scenario Planning: Simulate outcomes with ease, compare “what-if” scenarios, and adjust plans to avoid disruptions.

✅ Reduced Waste: Accurate forecasting means optimized production—no more overstocking or spoiled inventory.

✅ Growth Insights: AI uncovers demand signals you might miss, like external trends or regional opportunities, to fuel revenue growth.

Real Results for F&B Companies

Companies adopting AI-powered solutions see results like:

Up to 30% improvement in forecast accuracy
Reduced inventory costs by 10-20%
Faster response to supply chain shifts

By unlocking demand insights and improving agility, F&B businesses can turn challenges into opportunities.

Ready to Unlock Growth?

Don’t let inaccurate forecasts limit your growth. Explore how AI-powered demand forecasting can help you stay ahead of demand, reduce costs, and grow your business. Schedule a demo today.

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January 16, 2025

The Power of AI in Sales & Operations Planning for the Food & Beverage Industry

The food and beverage (F&B) industry is one of the most dynamic and challenging sectors in the global market. With fluctuating consumer preferences, stringent regulations, and the pressure to minimize waste, achieving operational efficiency is no small feat. Sales & Operations Planning (S&OP) plays a pivotal role in navigating these complexities, helping businesses align their demand forecasts with operational capabilities.

Navigating Complexity with Precision
Traditional S&OP processes often fall short of delivering the agility and precision required in today’s market. This is where AI-powered supply chain planning solutions step in, transforming how F&B companies strategize, plan, and execute their operations. By integrating advanced analytics, predictive capabilities, and real-time insights, AI is reshaping S&OP into a powerful growth engine.

Why Does S&OP Matter in F&B?
At its core, S&OP is a structured process that ensures sales forecasts, production plans, and business objectives are in harmony. For F&B companies, this alignment is crucial to navigating the sector's unique challenges. Imagine trying to forecast demand for seasonal products like ice cream or holiday beverages while accounting for production capacity, supplier timelines, and regulatory compliance. The stakes are high—too much inventory leads to waste, while too little results in lost sales and customer dissatisfaction.

Traditional S&OP processes often rely on historical data and manual inputs, which can be prone to inaccuracies, errors, and delays. In an industry where shelf life is limited, and consumer preferences can change overnight, these inefficiencies are costly. The F&B sector needs S&OP solutions that are dynamic, precise, and responsive—qualities that AI delivers with remarkable effectiveness.

How AI is Transforming S&OP in the F&B Sector
AI brings a level of sophistication to S&OP that was previously unattainable. By leveraging AI, F&B companies can move beyond static, spreadsheet-based planning to dynamic, data-driven decision-making.

For example, AI enables real-time data integration from multiple sources, such as point-of-sale (POS) systems, social media trends, and even weather forecasts. Imagine a summer heatwave triggering a surge in demand for cold beverages. With AI, your S&OP process can quickly adjust forecasts and optimize production schedules to meet the spike in demand.

AI also introduces predictive analytics into the equation. Instead of relying solely on historical data, AI models analyze patterns and external signals to predict future demand with greater accuracy. This proactive approach allows businesses to anticipate challenges and capitalize on opportunities before they arise.

Another game-changing capability is scenario planning. What happens if a supplier faces delays? Or if consumer demand shifts mid-season? AI-powered S&OP platforms let companies simulate these "what-if" scenarios, evaluating potential impacts and determining the best course of action.

From Challenges to Opportunities: The Benefits of AI-Powered S&OP
The benefits of integrating AI into your S&OP process go far beyond efficiency. By harnessing the power of AI, F&B companies can unlock new levels of collaboration, precision, and agility.

Reduce Risk: AI reduces the risk of misalignment between departments. With a centralized platform that provides real-time insights, sales, production, and logistics teams can make informed decisions based on the same data. This transparency eliminates silos and fosters cross-functional collaboration.

Increased Agility: AI enhances agility. The F&B industry is often subject to external shocks, from unexpected demand surges to supply chain disruptions. AI-powered tools allow businesses to respond quickly, minimizing the negative impact of unforeseen events.

Profitability: AI drives sustainability—a growing priority for F&B companies and their consumers. By optimizing inventory and reducing waste, AI-powered S&OP aligns profitability with environmental responsibility.

Transforming S&OP into a Competitive Advantage
Sales & Operations Planning is no longer just a process—it’s a strategic advantage for companies ready to embrace the future. With AI, F&B businesses can transform their approach to planning, unlocking efficiencies, enhancing collaboration, and staying ahead of market changes.

If you’re looking to take your S&OP process to the next level, now is the time to act. Let our AI-powered supply chain platform help you navigate the complexities of the F&B industry with confidence and precision. Schedule a demo today to see how AI can revolutionize your S&OP process and drive your business forward.