The secret to efficient supply chain management

© 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


Current Visibility

PRINCIPAL COMPANY

REGIONAL OFFICE REGIONAL OFFICE

DISTRIBUTOR DISTRIBUTOR

WAREHOUSE WAREHOUSE WAREHOUSE

DEALER DEALER DEALER DEALER DEALER DEALER DEALER

R E T A I L E R S

DEALER

R E T A I L E R S

DISTRIBUTOR

Principal Company has

complete visibility

Principal

Company has

little-to-no

visibility


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!


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

Supply Chain Whitepaper – Read More

http://mirror.tallysolutions.com/Downloads/TallyPDFs/SCVWhitePaper.pdf


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

Rule


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




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


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

B U S I N E S S B E N E F I T S


• 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?




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

> 25 years of persistent

technological innovations

Facilitated with many national

and







Only Product Company in the country

with ability to handle scale









Universally accepted

across organizations

More than 600,000

customer base

More than 2 million users









Thousands of solutions deployed

For micro units to Top 50

listed companies

Ranging from simple to

very complex









Thousands of solutions deployed

Facilitated with many national

and international

awards

The secret to efficient supply chain management

Business

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