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 And yet, many companies today are still applying outdated methods to their supply chain planning.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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Insights

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June 30, 2025

Supply Chain Software Is Broken. Firstshift Is Fixing It.

For decades, supply chain software has promised transformation. The reality has been something very different: complex implementations, high costs, and systems that struggle to keep pace with business change.

Most of these platforms were designed for a different time, when supply chains moved slower, IT had complete control over enterprise systems, and planning was largely static. Fast-forward to 2025, and the world has changed dramatically. Business cycles are faster. Customer expectations are higher. And supply chains are under constant pressure to be more responsive and efficient.

And yet, the software meant to support that evolution hasn’t kept up.

The Legacy Trap: Built for Yesterday’s World

Traditional supply chain software wasn’t built for today’s pace or today’s users.

Implementations can take months or even years.
Total cost of ownership (TCO) remains high.
Adapting to business changes often means calling in consultants and waiting weeks or months for updates.

Worse, these systems are rarely built with the business user in mind. They were designed for technical experts, which creates a disconnect between those managing the supply chain and those trying to plan it. It delays decisions. It fragments workflows. And ultimately, it limits your ability to respond when it matters most.

We’ve seen technological advancements across industries like cloud computing, AI, machine learning, user-centric design. Shouldn’t supply chain planning be easier, faster, and more intuitive now?

Firstshift: Built for Agility. Powered by AI.

We didn’t try to modernize yesterday’s supply chain software. We reimagined what it could be starting from the needs of today’s businesses.

Firstshift is an AI-powered, cloud-native planning platform that brings speed, flexibility, and intelligence to the heart of your operations. It’s designed for business users, guided by real-world use cases, and built to evolve alongside your strategy.

Here’s how we’re helping companies shift forward:

Fast, Modular Deployment: Firstshift is designed for rapid time to value. Our modular platform and guided onboarding help companies go live in weeks, not months, without a heavy IT burden. We’ve seen companies go from legacy gridlock to full planning visibility in under 60 days.

Lower TCO, Higher Productivity: Our platform is built with AI at the core, automating complex planning tasks that used to require hours of human effort or external consultants. You don’t need a data science team to run Firstshift. You just need a supply chain challenge and the willingness to rethink what’s possible.

Adapt to Change Without the Red Tape: Business moves quickly. Your software should, too. Firstshift lets your team adjust plans, model scenarios, and respond to disruption in real time without submitting tickets or waiting weeks for configuration changes. Change becomes a strength, not a setback.

AI That Feels Like a Team Member: Our built-in AI copilot, Pluto, empowers planners to ask questions, run simulations, and explore insights using natural language. Pluto translates complexity into clarity, making it easier for your team to make confident, data-driven decisions every day.

Rethinking What Planning Can Be

At Firstshift, we believe the supply chain of the future requires three things:

Visibility that extends beyond your four walls
Speed that matches the pace of the market
Intelligence that adapts without added complexity

The software supporting your supply chain should amplify your team, not slow it down. That’s why we’ve focused on eliminating friction, increasing transparency, and delivering speed-to-insight across the planning process.

In a time when agility is the difference between growth and stagnation, the companies winning are those that can see clearly, plan confidently, and act decisively.

Ready to See What’s Possible?

If your current system feels like it was built for a different era, it probably was. Let us show you what a modern, AI-powered planning platform can do. Schedule your demo today and see how Firstshift makes intelligent supply chain agility simple, scalable, and finally within reach.

Insights

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May 1, 2025

Why Supply Chains Must Be Built for Agility

Adaptability isn’t optional. It’s the new baseline.

Volatility is not a temporary condition in today’s global supply chains - it’s structural. Geopolitical shifts, trade policies, climate events, and evolving consumer behaviors continue to test even the most robust supply chain models. Yet amid all this uncertainty, one truth holds: agility is the only true defense. And for modern enterprises, agility is impossible without AI-powered planning.

When the Ground Shifts, Static Plans Fail
Consider tariffs - just one of many variables supply chain leaders can’t control. While their timing and scope may be unpredictable, their impacts cascade quickly: sourcing strategies change, manufacturing pivots, lead times swell, and cost structures fracture. Supply chain planning must keep pace, not through spreadsheets and manual workarounds, but with technology that can model, simulate, and adjust in real time.

These kinds of disruptions reverberate across the entire supply chain. They impact:

Procurement and sourcing: shifting suppliers means new lead times, costs, and risk profiles.
Manufacturing: alternate production sites must be evaluated and rebalanced.
Inventory: stock levels must align with evolving demand, capacity, and constraints.
Distribution: networks need reconfiguration—across countries, modes, and facilities.

The Role of AI-Powered Supply Chain Planning
Traditional planning tools are backward-looking and brittle. AI changes the game by enabling adaptive, scenario-driven planning. With machine learning and external data signals layered in, AI-powered platforms surface actionable insights and automate responses to variability.

Here’s how it works:

Real-time scenario planning: Model the impact of tariff shifts, supplier changes, or demand fluctuations instantly - before they happen.
Attribute-based forecasting: Predict demand not just by product, but by features, location, seasonality, and macroeconomic signals.
Multi-tier visibility and synchronization: Align planning across sourcing, production, and distribution - not in silos but as an interconnected system.
Automation of repetitive tasks: Free up teams to focus on strategic exceptions while AI manages routine re-forecasts, replenishment triggers, and alerts.
Integrated execution alignment: Coordinate inventory, transportation, and fulfillment execution to match updated plans, dynamically.

From Reactive to Resilient
Organizations that cling to rigid planning cycles and fragmented data will struggle to keep pace. In contrast, companies embracing AI-powered planning can:

Shift from reactive fire-fighting to proactive decision-making
Manage risk by simulating scenarios and optimizing trade-offs in real time
Seize opportunity - faster and with confidence - when the competitive landscape changes

Built to Thrive in Disruption
Agility is no longer a differentiator - it’s the requirement for survival. The modern supply chain must be engineered for resilience, responsiveness, and optimization. AI-powered supply chain planning platforms are the foundation of that transformation.

Because in a world of constant change, the strongest supply chains aren’t the most efficient. They’re the most adaptable.

See It in Action
Ready to see how AI-powered planning can transform your supply chain strategy? Schedule a demo today and discover how to unlock real-time visibility, smarter forecasting, and faster decision-making—at every level of your supply chain.

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News

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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.