3 min read Managing inventory in a spreadsheet feels simple in the beginning, but as your business grows, those files often turn into a major source of risk. For many teams, the breaking point usually happens around 200 SKUs. That is when small mistakes turn into big problems.
One of the first issues is accuracy. Studies from 2024 show that average inventory accuracy across retailers is only about 63 percent, and most of the problems come from manual data entry and disconnected tools. When you rely on a spreadsheet, every update depends on someone remembering to type in the right number at the right time. All it takes is one missed change or one wrong value to throw the entire sheet off.
As the SKU count grows, spreadsheets also become harder to manage. Formulas get complicated, copy and paste errors slip in, and large files slow down. A 2024 retail operations report found that nearly 60 percent of businesses experienced inventory accuracy below 80 percent because their systems were too manual to keep up with real order volume. Once you reach the point where multiple people are editing the same sheet, version control becomes a daily struggle. Someone updates one copy, someone else updates another, and no one knows which file is right anymore.
Carrying costs increase the problem. Inventory that sits on a shelf for too long can cost 20 to 30 percent of its value every year when you include storage, handling, insurance, and shrink. Spreadsheet delays often hide excess stock, so businesses end up paying for items they forgot they even had. At the same time, stockouts become more frequent because the sheet shows quantities that are no longer accurate.
There is also the human factor. A single typo, such as an extra zero or a missing digit, can distort reorder points, create bad purchase orders, or cause overselling. Spreadsheets do not alert users to mistakes, do not prevent conflicting updates, and do not follow structured workflows that help teams stay aligned.
By the time your business passes 200 SKUs, the limitations of spreadsheets become impossible to ignore. The amount of manual effort grows faster than your team can realistically keep up with, and every update introduces the possibility of another silent error. When data stops being trustworthy, forecasting becomes guesswork, customer expectations become harder to meet, and you begin losing time and money to problems you cannot see.
If you are starting to feel the pain of spreadsheets that no longer match the pace of your business, it may be time to explore a system that keeps inventory accurate in real time, reduces manual work, and supports the growth you are aiming for. The right tools make daily operations smoother and let you focus on building the business instead of fixing the spreadsheet. Feel free to schedule a meeting with our team.
