One of the major problems faced by supply chain management models is the lack of availability of last mile data, which can make even the most advanced logistics & inventory management systems to produce sub-optimal results. This document will discuss the inherent problems in the concept of SCM in brief followed by a look at the current visibility challenges and how businesses can access & leverage the information hidden in the last mile.

1. Tally.ERP 9: Supply Chain Visibility
Solution
Making Last-Mile Visibility Possible
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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
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3. Current Visibility
Principal Company has
complete visibility
PRINCIPAL COMPANY
REGIONAL OFFICE
REGIONAL OFFICE
WAREHOUSE
WAREHOUSE
DISTRIBUTOR
DEALER
DEALER
DISTRIBUTOR
DEALER
DEALER
R E T A I L E R S
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WAREHOUSE
Principal
Company has
little-to-no
visibility
DEALER
DEALER
DISTRIBUTOR
DEALER
DEALER
R E T A I L E R S
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4. Current Visibility Challenges
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
Distributors*
•
•
•
•
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!
Retailers
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5. 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
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6. Current Scenario: Goldratt Strikes
Sales Mix
Few large
brands
Stockist Mix
Limited
working
capital of
the
stockist
Several Mid
Sized brands
Generally
where
dumping /
overstocking
happens
Not much
impacted
Niche packs
New Products
Slow Moving
Understocked
• 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.
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7. Tally.ERP 9 Supply Chain Visibility Solution
Company uploads Synchronization
Rule
Retailer/ Reseller Logs on to
subscribes to rule
Tally.Net server
Data uploaded
periodically for
synchronization
Dealer + Retailer + Reseller
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Receives the details of sales
entered and stock
availability
Principal Company
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8. Known challenges to Electronic Data Exchange
Challenges
The Tally.ERP 9 Solution
•
Data Security
•
Trusted Remote Access
•
Format / Code Standardization
•
Standard Synchronization method
•
Internet Penetration
•
Incremental upload
•
Virus Fear
•
No new software to be installed
•
Automation & Simplicity in the
•
High Automation & Signature
Process
Simplicity
•
Financial Compulsion
•
No financial stress on Retailer
•
Rollout & Support
•
Existing Partner Network
Supply Chain Whitepaper – Read More
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9. Current Vs Desirable
Current Order Process
Replenishment (Pull Based) in Tally.ERP
9 SCV solution
•
•
•
•
•
•
•
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
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•
•
•
•
•
Less or no manual visits required as
data upload process is automated
Inventory Reorder levels auto
updated as data is received in realtime.
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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10. Supply Chain Visibility Benefits
IMPACT OF SUPPLY CHAIN
VISIBILITY
BUSINESS BENEFITS
Precise stock management and
reduced inventory costs
Avoid overstocking or under stocking
Visibility of inventory levels of channel partners
Decreased inventory holding cost
Improved fulfilment cycle time
Decreased investment in finished goods and WIP inventory
Enables new market opportunities
More accurate sales forecasts
Enhanced customer loyalty
Accurate, timely and relevant data on historical sales figures
Helps strategizing production and distribution
Crisis management
Monitor moment-to-moment activities
Deliver change in process with ease
Ability to manage the unexpected
Internal collaboration v/s data
isolation
Collaboration of information present in the ecosystem
Avoid unnecessary costs
Optimized Supply Chain through
better delivery performance
Reduced logistics costs
Quickly adjust the supply chain to demand fluctuation
Capacity Utilization
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Shape future demand
Better utilization of resources
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11. Why is Tally.ERP 9 in a unique position to solve this?
•
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
Supply Chain Whitepaper – Read More
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12. 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.
Supply Chain Whitepaper – Read More
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13. Enterprise Accounts
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14. Tally – At a glance
Facilitated with
many national
and
> 25 years of
persistent
technological
innovations
Supply Chain Whitepaper – Read More
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15. Tally – At a glance
> 25 years of
persistent
technological
innovations
Only Product
Company in
the country
with ability to
handle scale
Supply Chain Whitepaper – Read More
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16. Tally – At a glance
> 25 years of
persistent
technological
innovations
Only Product
Company in
the country
with ability to
handle scale
More than 2 million users
More than 600,000
customer base
Universally
accepted
across
organizations
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16

17. Tally – At a glance
> 25 years of
persistent
technological
innovations
Only Product
Company in
the country
with ability to
handle scale
Thousands of
solutions
deployed
Ranging from simple to
very complex
For micro units to Top 50
listed companies
Universally
accepted
across
organizations
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17

18. Tally – At a glance
Facilitated with
many national
and
international
awards
> 25 years of
persistent
technological
innovations
Only Product
Company in
the country
with ability to
handle scale
Thousands of
solutions
deployed
Universally
accepted
across
organizations
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19. Thank You
Supply Chain Whitepaper – Read More
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