Tally.ERP 9: Supply Chain Visibility Solution

© 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 DEALERDEALER 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

PrincipalCompany • 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


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 largebrands

Several MidSized brands

Niche packsNew ProductsSlow Moving

Generallywhere

dumping / overstocking

happens

Not muchimpacted

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 managementMonitor moment-to-moment activitiesDeliver change in process with ease

Collaboration of information present in the ecosystemAvoid unnecessary costs

Reduced logistics costsQuickly adjust the supply chain to demand fluctuation

Avoid overstocking or under stocking

Visibility of inventory levels of channel partnersDecreased inventory holding cost

Decreased investment in finished goods and WIP inventoryEnables new market opportunities

Enhanced customer loyaltyAccurate, timely and relevant data on historical sales figuresHelps 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?

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

> 25 years of persistent

technological innovations

Only Product

Company in the country with ability to handle

scaleUniversally

accepted across

organizations

Thousands of solutions

deployed

Facilitated with many

national and international

awardsMore than 600,000 customer base

More than 2 million users

For micro units to Top 50 listed companies

Ranging from simple to very complex

© Tally Solutions Pvt. Ltd. All Rights Reserved

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Tally.ERP 9: Supply Chain Visibility Solution