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Tally.ERP 9: Supply Chain VisibilitySolution
Making Last-mile Visibility Possible
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What is Supply Chain Visibility?
Supply Chain Visibility (SCV) is the traceability of goods as they move through thesupply 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
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Current Visibility
PRINCIPAL COMPANY
REGIONAL OFFICE REGIONAL OFFICE
DISTRIBUTOR DISTRIBUTOR
WAREHOUSE WAREHOUSE WAREHOUSE
DEALER DEALER DEALER DEALER DEALERDEALER DEALER
R E T A I L E R S
DEALER
R E T A I L E R S
DISTRIBUTOR
Principal Company hascomplete visibility
Principal
Company has
little-to-no
visibility
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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 demandcreation)
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 Pharmatakes back expiries & reimburses completely. FMCG
Retailer may be tempted to sell expired goods!
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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
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Current Scenario: Goldratt Strikes
Goldratts 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
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Dealer + Retailer + Reseller
Principal Company
Tally.Net server
Data uploadedperiodically for
synchronization
Receives the details of salesentered and stock
availability
Retailer/ Reseller Logs on to
subscribes to rule
Tally.ERP 9 Supply Chain Visibility Solution
Company uploads Synchronization
Rule
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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
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
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Current Vs Desirable
Current Order Process
Requires Manual Visits to place order
by formula based on Stock & Sales
Primary pressure forces demand forExtra 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 autoupdated 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
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Supply Chain Visibility Benefits
Precise stock management andreduced inventory costs
Improved fulfilment cycle time
More accurate sales forecasts
Ability to manage the unexpected
Internal collaboration v/s dataisolation
Optimized Supply Chain throughbetter 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 ecosystemAvoid 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 loyaltyAccurate, timely and relevant data on historical sales figures
Helps strategizing production and distribution
IMPACT OF SUPPLY CHAINVISIBILITY B U S I N E S S B E N E F I T S
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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?
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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 timeavailability 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.
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TallyAt a glance
> 25 years ofpersistent
technological
innovations
Facilitated withmany national
and
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TallyAt a glance
> 25 years ofpersistent
technological
innovations
Only ProductCompany inthe country
with ability to
handle scale
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TallyAt a glance
> 25 years ofpersistent
technological
innovations
Only ProductCompany inthe country
with ability to
handle scaleUniversally
acceptedacross
organizations
More than 600,000
customer base
More than 2 million users
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TallyAt a glance
> 25 years ofpersistent
technological
innovations
Only ProductCompany inthe country
with ability to
handle scaleUniversally
acceptedacross
organizations
Thousands ofsolutionsdeployed
For micro units to Top 50
listed companies
Ranging from simple to
very complex
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TallyAt a glance
> 25 years ofpersistent
technological
innovations
Only ProductCompany inthe country
with ability to
handle scaleUniversally
acceptedacross
organizations
Thousands ofsolutionsdeployed
Facilitated withmany national
and
internationalawards
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