Tally.ERP 9: Supply Chain Visibility Solution. Making Last-mile Visibility Possible. What is Supply Chain Visibility?.
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Tally.ERP 9: Supply Chain Visibility Solution Making Last-mile Visibility Possible
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
Current Visibility Principal Company has complete visibility PRINCIPAL COMPANY REGIONAL OFFICE REGIONAL OFFICE WAREHOUSE WAREHOUSE WAREHOUSE Principal Company has little-to-no visibility DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DEALER DEALER DEALER DEALER DEALER DEALER DEALER DEALER RETAILERS RETAILERS
Current Visibility Challenges 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 Distributors* • 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! Retailers
Current Scenario: Informal ways deployed • Manualcollection 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
Limited working capital of the stockist 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. Current Scenario: GoldrattStrikes Sales Mix Stockist Mix Generally where dumping / overstocking happens Few large brands Several Mid Sized brands Not much impacted Niche packs New Products Slow Moving Understocked
Retailer/ Reseller Logs on to subscribes to rule Tally.Net server Data uploaded periodically for synchronization Receives the details of sales entered and stock availability Tally.ERP 9 Supply Chain Visibility Solution Company uploads Synchronization Rule Principal Company Dealer + Retailer + Reseller
Known challenges to Electronic Data Exchange Challenges The Tally.ERP 9 Solution TrustedRemote Access Standard Synchronization method Incremental upload No new software to be installed High Automation & Signature Simplicity No financial stress on Retailer Existing Partner Network • Data Security • Format / Code Standardization • Internet Penetration • Virus Fear • Automation & Simplicity in the Process • Financial Compulsion • Rollout & Support
Current Vs Desirable Current Order Process Replenishment (Pull Based) in Tally.ERP 9 SCV solution • 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 • 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
Supply Chain Visibility Benefits • IMPACT OF SUPPLY CHAIN VISIBILITY • BUSINESS BENEFITS • Avoid overstocking or under stocking • Precise stock management and reduced inventory costs • Visibility of inventory levels of channel partners • Decreased inventory holding cost • Improved fulfilment cycle time • Decreased investment in finished goods and WIP inventory • Enables new market opportunities • Enhanced customer loyalty • More accurate sales forecasts • Accurate, timely and relevant data on historical sales figures • Helps strategizing production and distribution • Crisis management • Ability to manage the unexpected • Monitor moment-to-moment activities • Deliver change in process with ease • Internal collaboration v/s data isolation • Collaboration of information present in the ecosystem • Avoid unnecessary costs • Optimized Supply Chain through better delivery performance • Reduced logistics costs • Quickly adjust the supply chain to demand fluctuation • Capacity Utilization • Shape future demand • Better utilization of resources
Why is Tally.ERP 9 in a unique position to solve this? • 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 The Tally Advantage
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 – At a glance • Ranging from simple to very complex • More than 2 million users • More than 600,000 customer base • For micro units to Top 50 listed companies