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 . ID: 431043
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Tally.ERP 9: Supply Chain Visibility Solution
Making Last-mile Visibility
Possible
Slide2What 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
Slide3Current 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
Slide4Current 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!
Slide5Current 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
Slide6Current 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
Slide7Dealer + 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
Slide8Known 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
Slide9Current 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
Slide10Supply 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
Slide11Well 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
Slide12Quantified 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.
Slide13Enterprise Accounts
Slide14Tally – 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
Slide15Thank You
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