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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 stagesMaking the information mobile so it can be transferred Consolidation for display and usage

Current Visibility

PRINCIPAL COMPANY

REGIONAL OFFICE

REGIONAL OFFICE

DISTRIBUTOR

DISTRIBUTOR

WAREHOUSE

WAREHOUSE

WAREHOUSE

DEALER

DEALER

DEALER

DEALER

DEALER

DEALER

DEALER

RETAILERS

DEALER

RETAILERS

DISTRIBUTOR

Principal Company has complete visibility

Principal Company has

little-to-no

visibility

Current Visibility Challenges

Distributors*

Retailers

Principal

Company

C

omputerized

, however have

local softwareData Entry Driven Process Genuine human errorsTransient 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!

Current Scenario: Informal ways deployed

Manual

collection is time consuming and inaccurateExternal marketing people Applying own manpower to the field Principal Company gives portals to Dealers and Retailers for uploading data Problem in technology adoptionDifficult for a Dealer, selling products of many Principal Companies at the same time.Retailers cannot invest in new software:AffordabilityKnowledge gap, both technological and usability

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 Mix

Stockist 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

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 Rul

e

Known challenges to Electronic Data Exchange

Challenges

Data SecurityFormat / Code StandardizationInternet PenetrationVirus FearAutomation & Simplicity in the ProcessFinancial CompulsionRollout & 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

Current Vs Desirable

Current Order Process

Requires Manual Visits to place order by formula based on Stock & SalesPrimary pressure forces demand for “Extra” orders. The incentive paid here is loss to company / sales staffFudging of “Stock & Sales” due to intense stocking pressurePlanning period is too long, i.e. a month or more. Shortage / SurplusHigh 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

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

Well established and unparalleled presence in the marketComprehensive business management solutionFlexible integration capabilities with any other applicationRollout 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?

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.

Enterprise Accounts

Tally – At a glance

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

Thank You