9 Supply Chain Visibility Solution Making Lastmile Visibility Possible What is Supply Chain Visibility Supply Chain Visibility SCV is the traceability of goods as they move through the ID: 358266
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Slide1
Tally.ERP 9: Supply Chain Visibility Solution
Making Last-mile Visibility
PossibleSlide2
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
usageSlide3
Current VisibilityPRINCIPAL 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
visibilitySlide4
Current Visibility ChallengesDistributors*
Retailers
Principal
Company
C
omputerized
, however have
local
software
Data
Entry Driven Process
G
enuine
human
errors
Transient
field manipulations, field malpractices,
H
igher
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, ExpiriesCompany: 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!Slide5
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 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 usabilitySlide6
Current Scenario: Goldratt StrikesGoldratt’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
stockistSlide7
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
eSlide8
Known challenges to Electronic Data Exchange ChallengesData 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 methodIncremental uploadNo new software
to be installedHigh Automation & Signature Simplicity No financial stress on Retailer
Existing Partner NetworkSlide9
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 packMuch lesser
fire-fighting scenariosSlide10
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 BENEFITSSlide11
Well established and unparalleled presence in the marketComprehensive 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?
The Tally AdvantageSlide12
Quantified BenefitsIncrease 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 availableThe 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.Slide13
Enterprise AccountsSlide14
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 complexSlide15
Thank You