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© Tally Solutions Pvt. Ltd. All Rights Reserved 1 1
© Tally Solutions Pvt. Ltd. All Rights Reserved 2 2
© Tally Solutions Pvt. Ltd. All Rights Reserved 3 3
• Making Last-mile Visibility PossibleMaking Last-mile Visibility Possible
Tally.ERP 9: Supply Chain Visibility Tally.ERP 9: Supply Chain Visibility SolutionSolution
© Tally Solutions Pvt. Ltd. All Rights Reserved 4 4
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
© Tally Solutions Pvt. Ltd. All Rights Reserved 5 5
Current Visibility
PRINCIPAL COMPANY
REGIONAL OFFICE REGIONAL OFFICE
DISTRIBUTOR DISTRIBUTOR
WAREHOUSE WAREHOUSE WAREHOUSE
DEALER DEALER DEALER DEALER DEALERDEALER DEALER
RETAILERS
DEALER
RETAILERS
DISTRIBUTOR
Principal Company has complete visibility
Principal Company has little-to-no visibility
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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!
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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
• 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
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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
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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
• 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
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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 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
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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 costs
Quickly 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
BUSINESS BENEFITS
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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 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.
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Tally – At a glance
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Tally – At a glance
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Tally – At a glance
More than 600,000 customer base
More than 2 million users
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Tally – At a glance
For micro units to Top 50 listed companies
Ranging from simple to very complex
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Tally – At a glance
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Thank You