Losing the race: why Excel can’t keep up with manufacturing ERP

In the world of Formula 1 (F1), where fractions of a second can mean the difference between victory and defeat, precision and speed are vital. Behind the scenes, before the day of a race, there is a complex manufacturing process that involves designing, prototyping, and producing thousands of unique parts for each car to ensure it is optimised for racing.

Those in charge will need to navigate tight deadlines, supply chain management and quality control, keeping track of each and every part to ensure the assembly process runs smoothly.

In 2024, however, it was revealed that one of the F1’s ten teams had been reliant on Excel to manage its factory operations. Williams Racing was tracking 20,000 different parts and components on a single Excel spreadsheet, with essential metrics like component costs, inventory levels, and lead times missing.

Upon taking over as team principal at Williams F1 in 2023, James Vowles described the Excel list as “a joke” which was “impossible to navigate and impossible to update.”

While many fans were shocked by the revelation, in the manufacturing world, it simply demonstrated how crucial bespoke solutions, such as manufacturing enterprise resource planning (ERP) software, are for operational success - regardless of if you’re in the heart of the F1 or a factory in the UK.

The limitations of relying on spreadsheets

In the early days, tools like Excel were sufficient to manage workflows. But as car designs have evolved, with thousands of interdependent components, the F1 needs systems which can keep pace.

While versatile, Excel struggles to keep up with the demand for data to be in real-time. Data is often held on static spreadsheets that can quickly become outdated if not automatically updated, or inconsistent if shared across different teams.

Inevitably, this approach also risks the chance of human error, with something as simple as an incorrect decimal place or extra zero able to become a costly mistake, particularly when there are limitations on how much each F1 team can spend - currently set at $135 million.

The real frustration comes when teams can’t find the information they require to make important and timely decisions. Vowles equated using Excel to create an order for a car front wing - with 400 parts - to a click-and-hope procedure because the information he wanted wasn’t accessible.

"You need to know where each of those independent components is, how long it will take before it's complete, how long it will take before it goes to inspection. If there have been any problems with inspections, whether it has to go back again," explained Vowles.

He added that "once you start putting that level of complexity in, which is where modern Formula 1 is, the Excel spreadsheet falls over, and humans fall over. And that's exactly where we are."

As F1 teams grow in size and complexity, managing hundreds of parts, suppliers, and schedules on Excel will only become more challenging.

The benefits of ERP software

ERP systems specifically designed for manufacturing, such as Ridder iQ, have clear benefits over traditional, manual methods.

In contrast to siloed spreadsheets, they integrate data from all departments into a unified system, ensuring everyone - from team leaders to logistics staff - are working from the same up-to-date information.

F1 manufacturing requires some of the most rigorous quality control and traceability, with ERP systems making it easy to track every component’s journey, from procurement to assembly, ensuring compliance with strict standards.

They can also provide data and analytics to help teams to make more informed decisions and identify cost savings and inefficient processes. What’s more is that these systems are highly scalable and can be customised to accommodate new demands in fast-moving industries over time.

The real life impact

The importance of keeping on top of manufacturing processes was seen clearly in the 2024 Australian Grand Prix, where one of Williams’ two drivers crashed during a pre-race practice lap and damaged the car’s chassis.

While teams are usually prepared with an alternate chassis on hand, the factory’s state of disarray meant that a second chassis could not be made in time. Williams had to put one of their two drivers on the bench, harming their chances of earning championship points.

In a statement, Vowles said the team were “hugely disappointed that the damage sustained to the chassis has meant we need to withdraw it from the weekend. It's unacceptable in modern day Formula 1 not to have a spare chassis, but it is a reflection of how behind we were in the winter period and an illustration of why we need to go through significant change in order to get ourselves in a better position for the future.”

Williams Racing have since been making digital transformation changes to improve their competitive edge, with the scenario only emphasising how important it is to maintain tight control over your manufacturing processes.

To truly race ahead, F1 teams - and manufacturers across all industries - must leave the spreadsheets behind and embrace the power of ERP systems.

To find out more about how Ridder IQ can help your business, visit our product page.