The secret to efficient supply chain management

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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.

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The secret to efficient supply chain management

  1. 1. 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 © Tally Solutions Pvt. Ltd. All Rights Reserved 2
  3. 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 © Tally Solutions Pvt. Ltd. All Rights Reserved WAREHOUSE Principal Company has little-to-no visibility DEALER DEALER DISTRIBUTOR DEALER DEALER R E T A I L E R S 3
  4. 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 © Tally Solutions Pvt. Ltd. All Rights Reserved 4
  5. 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 © Tally Solutions Pvt. Ltd. All Rights Reserved 5
  6. 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. © Tally Solutions Pvt. Ltd. All Rights Reserved 6
  7. 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 © Tally Solutions Pvt. Ltd. All Rights Reserved Receives the details of sales entered and stock availability Principal Company 7
  8. 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 © Tally Solutions Pvt. Ltd. All Rights Reserved 8
  9. 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 © Tally Solutions Pvt. Ltd. All Rights Reserved • • • • • 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 9
  10. 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 © Tally Solutions Pvt. Ltd. All Rights Reserved Shape future demand Better utilization of resources 10
  11. 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 © Tally Solutions Pvt. Ltd. All Rights Reserved 11
  12. 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 © Tally Solutions Pvt. Ltd. All Rights Reserved 12
  13. 13. Enterprise Accounts © Tally Solutions Pvt. Ltd. All Rights Reserved 13
  14. 14. Tally – At a glance Facilitated with many national and > 25 years of persistent technological innovations Supply Chain Whitepaper – Read More © Tally Solutions Pvt. Ltd. All Rights Reserved 14
  15. 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 © Tally Solutions Pvt. Ltd. All Rights Reserved 15
  16. 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 © Tally Solutions Pvt. Ltd. All Rights Reserved 16
  17. 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 © Tally Solutions Pvt. Ltd. All Rights Reserved 17
  18. 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 © Tally Solutions Pvt. Ltd. All Rights Reserved 18
  19. 19. Thank You Supply Chain Whitepaper – Read More © Tally Solutions Pvt. Ltd. All Rights Reserved

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