Spreadsheet based product information management: Calculating the cost of errors
Copy, paste, copy, paste, copy, paste…. what a great feature in Excel, but what a nightmare when consolidating numerous spreadsheets of product information from various departments into a single master version for one of your clients. How many clients request your product information? Each one has its own “master” spreadsheet format they require you to use to automate their data upload process. Unfortunately, when this is the case, copy and paste is the only answer. But it also is very error prone. Not to mention costly.
When you watch the below video, is this you?
According to AMR Research….
Companies invest an average of 25 minutes per item per year to manually cleanse out of sync product information. They say a company with 250,000 products spends $3,000,000 annually for this purpose.
Let's determine how much it costs a mid-sized manufacturing organization:
- # of Items: 10,000
- # of Minutes spent per item per year: 12 (let’s be conservative)
- Loaded hourly rate of associate: $25 per hour
- Annual Cost
- (# Items x # minutes/item)/60) x loaded hourly rate
- (10,000 x 12)/60 x $25