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© Tally Solutions Pvt. Ltd. All Rights Reserved Tally.ERP 9: Supply Chain Visibility Solution Making Last-mile Visibility Possible
© Tally Solutions Pvt. Ltd. All Rights Reserved 2 2 What is Supply Chain Visibility? Supply Chain Visibility (SCV) is the traceability of goods as they move through the supply chain to ensure availability of the right product, in the right quantity, at the right time, in the right place. It includes: Collection of distributed data across various stages Making the information mobile so it can be transferred Consolidation for display and usage
© Tally Solutions Pvt. Ltd. All Rights Reserved 3 3 Current Visibility PRINCIPAL COMPANY REGIONAL OFFICE DISTRIBUTOR WAREHOUSE DEALER RETAILERS DEALER RETAILERS DISTRIBUTOR Principal Company has complete visibility Principal Company has little-to-no visibility
© Tally Solutions Pvt. Ltd. All Rights Reserved 4 4 Current Visibility Challenges Distributors* Retailers Principal Company Computerized, however have local software Data Entry Driven Process Genuine human errors Transient field manipulations, field malpractices, Higher FG inventory, expiries, Sales team time & energy spent on distribution (away from demand creation) Exclusive Geography to Distributor ensures Sales Credit Retailers are less computerized Lack of Electronic Data Exchange and Barcodes Retailer Issues: Inventory, Loss of Sales, Shoplifting, Expiries Company: Cascading impact, becomes a joint victim of retailers issues E.g. In Pharma – takes back expiries & reimburses completely. FMCG – Retailer may be tempted to sell expired goods!
© Tally Solutions Pvt. Ltd. All Rights Reserved 5 5 Current Scenario: Informal ways deployed Manual collection is time consuming and inaccurate External marketing people Applying own manpower to the field Principal Company gives portals to Dealers and Retailers for uploading data Problem in technology adoption Difficult for a Dealer, selling products of many Principal Companies at the same time. Retailers cannot invest in new software: Affordability Knowledge gap, both technological and usability
© Tally Solutions Pvt. Ltd. All Rights Reserved 6 6 Current Scenario: Goldratt Strikes Goldratt’s theory of constraint (TOC) applies to Pharma equally as FMCG. Stockist (first point of sale for company) has limited working capital. If this capital is misused for overstocking certain packs (to achieve targets, product-wise targets etc) then the stocking pattern is not as per the sales pattern (pro rata) Working capital being the constraint, the fallout is understocking for several other products. Sales MixStockist Mix Few large brands Several Mid Sized brands Niche packs New Products Slow Moving Generally where dumping / overstocking happens Not much impacted Understocked Limited working capital of the stockist
© Tally Solutions Pvt. Ltd. All Rights Reserved 7 7 Dealer + Retailer + Reseller Principal Company Tally.Net server Data uploaded periodically for synchronization Receives the details of sales entered and stock availability Retailer/ Reseller Logs on to subscribes to rule Tally.ERP 9 Supply Chain Visibility Solution Company uploads Synchronization Rule
© Tally Solutions Pvt. Ltd. All Rights Reserved 8 8 Known challenges to Electronic Data Exchange Challenges Data Security Format / Code Standardization Internet Penetration Virus Fear Automation & Simplicity in the Process Financial Compulsion Rollout & Support The Tally.ERP 9 Solution Trusted Remote Access Standard Synchronization method Incremental upload No new software to be installed High Automation & Signature Simplicity No financial stress on Retailer Existing Partner Network
© Tally Solutions Pvt. Ltd. All Rights Reserved 9 9 Current Vs Desirable Current Order Process Requires Manual Visits to place order by formula based on Stock & Sales Primary pressure forces demand for “Extra” orders. The incentive paid here is loss to company / sales staff Fudging of “Stock & Sales” due to intense stocking pressure Planning period is too long, i.e. a month or more. Shortage / Surplus High price paid for problem solving – Air Courier, Inter Depot Transfers & Higher Inventories Replenishment (Pull Based) in Tally.ERP 9 SCV solution Less or no manual visits required as data upload process is automated Inventory Reorder levels auto updated as data is received in real- time. Higher accuracy and authenticity of data uploaded Planning reduced to weeks or even days. Reduced shortage / surplus by pack Much lesser fire-fighting scenarios
© Tally Solutions Pvt. Ltd. All Rights Reserved 10 Supply Chain Visibility Benefits Precise stock management and reduced inventory costs Improved fulfilment cycle time More accurate sales forecasts Ability to manage the unexpected Internal collaboration v/s data isolation Optimized Supply Chain through better delivery performance Capacity Utilization Shape future demand Better utilization of resources Crisis management Monitor moment-to-moment activities Deliver change in process with ease Collaboration of information present in the ecosystem Avoid unnecessary costs Reduced logistics costs Quickly adjust the supply chain to demand fluctuation Avoid overstocking or under stocking Visibility of inventory levels of channel partners Decreased inventory holding cost Decreased investment in finished goods and WIP inventory Enables new market opportunities Enhanced customer loyalty Accurate, timely and relevant data on historical sales figures Helps strategizing production and distribution IMPACT OF SUPPLY CHAIN VISIBILITY BUSINESS BENEFITS
© Tally Solutions Pvt. Ltd. All Rights Reserved 11 Well established and unparalleled presence in the market Comprehensive business management solution Flexible integration capabilities with any other application Rollout and support through large partner network Ease of Adoption Intermittent connectivity to internet Infrastructure readiness: Tally.NET is a proven system for data exchange Why is Tally.ERP 9 in a unique position to solve this?
© Tally Solutions Pvt. Ltd. All Rights Reserved 12 Quantified Benefits Increase in Top line: If a sales person required 2 man days per month (8 working hours/ day) for gathering, entering and collating information earlier, now he would need only 1 hour per month. Considering a 20 day work month for the employee, of which only 18 man days were being spent on revenue generation, the result is 9.4% increase in time availability per month. This would result in almost 3% increase in top line for this 9.4% extra time available The time to market is reduced from 3 days to 1 day essentially improving efficiency by 67%. If the data gathering, entering and collating process would earlier require 3-4 dedicated staff members, it will come down to only 1 person for the same work.
© Tally Solutions Pvt. Ltd. All Rights Reserved 13 Enterprise Accounts
© Tally Solutions Pvt. Ltd. All Rights Reserved 14 Tally – At a glance > 25 years of persistent technological innovations Only Product Company in the country with ability to handle scale Universally accepted across organizations Thousands of solutions deployed Facilitated with many national and international awards More than 600,000 customer base More than 2 million users For micro units to Top 50 listed companies Ranging from simple to very complex
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