Implementation of LS Retail for Dynamics NAV in Grandee Kosmetik network

Impact-Soft successfully performs this project. The ERP solution for Grandee Kosmetik is developed based on the LS Retail system. It simplifies monitoring information on goods, buyers, sellers, warehouses and POS terminals via the Microsoft Dynamics™ NAV system. Thanks to the built-in module of data exchange LS Retail allows to manage easily and quickly information streams, coming to shops.

Information on a zakachik

Grand Kosmetik Ltd, the exclusive representative of the Swedish company INVIMA AB, works at the perfumery and cosmetic market since 1996. Two retail networks are a part of holding: Make Up Store and Make Up Station. The first is engaged in distribution and the wholesale supplies of cosmetics under the brands Isadora, Essense, Smashbox. The second develops the retail direction under own Make Up Station trademark.

In the middle of 2006 the company purchased a franchize on deployment in Russia of the Swedish network of the decorative Make Up Store AD cosmetics created in 1996 and which is engaged in production and retail sale of cosmetics under the brand of the same name. Shops under this brand work in dozens of the countries of the world. Under the terms of the agreement Grandee Kosmetik only for 2007 should open 15 shops.

Project Goals and Objectives

The retail chain stores had to be built "from scratch" therefore in the contract with the Swedish side it was at once written that shops should work at software products of Microsoft. This condition was connected with the fact that back-office in the headquarters of Make Up Store AD in Sweden functions based on Microsoft Dynamics™ NAV.

So the Swedish company works worldwide. Under the agreement before opening of shops all necessary actions for automation were made, and the retail chain stores were started only after that.

Choice of the ERP system and contractor of the project

The management Grandee Kosmetik made the decision at the first stage to automate two shops of Make Up Store network. For their automation the solution Landsteinar Strengur Retail (LS Retail) based on Microsoft Dynamics™ NAV was selected. The LS Retail system simplifies information management about goods, buyers, sellers, warehouses and POS terminals via the Microsoft Dynamics™ NAV system. Thanks to the module of data exchange which is built in a system Landsteinar Strengur Retail manages information streams, coming to shops. There is an opportunity to define what prices and offers work in each outlet. Besides, LS Retail allows to create reference books and to control pricing in shops. The software is completely integrated with the equipment installed in outlet.

As the system integrator in Russia according to the recommendation of Landsteiner Strengur (LS Retail developer) the Impact-Soft company, one of leaders in the segment was invited. Besides, the Impact-Soft company has exclusive rights on localization of the solution LS Retail in Russia (starting with version 2.5), and also has a number of own developments based on LS Retail.

Project Progress

In the course of implementation of the ERP system in shops of Make Up Store network the following business processes were automated:

• formation of reference books and pricing;
• integration into the equipment of shops;
• purchase of goods;
• sales of goods;
• sale of services;
• inventory;
• movement of goods between shops.
• payment by bank cards;
• system of increase in a customer loyalty (including discount cards, gift certificates)
• return of goods by the buyer;
• return of goods to the supplier;

Especially for Grandee Kosmetik specialists of Impact-Soft company carried out works on integration of a system with the installed retail store equipment (a fiscal registrar Shtrikh-Mini-FR-K; display of the buyer of Wincor Nixdorf; scanner of barcodes; Wincor Nixdorf strongbox; magnetic card reader).

On automation of all business challenges within the project one month was necessary for specialists of Impact-Soft company.

"The main objectives of front-office - to consider sales of goods and to control a remaining balance, - Alexander Bratslavsky, the managing director Grandee Kosmetik and the project manager of product introduction LS Retail says. - Using the implemented programs we successfully solve these problems".

Project Features

Integration of the solution implemented in the Russian retail chain stores with the ERP system of the central office Make Up Store AD in Sweden became the main feature of the project as it was already mentioned above. The international version of Microsoft Dynamics™ NAV used there is not completely compatible on objects to the localized Russian version, as well as the accounting principles implemented in two systems and the organization of the reporting. "Language barrier" as it appeared, entered the features to the project too. "Integration of our reporting with back-office in Sweden was the most difficult, - Alexander Bratslavsky tells. - We have an interface in English, and in the headquarters - in Swedish. It was necessary to make so that replication of all data in Sweden matched our data on formation of a remaining balance and orders".

Besides, integration of LS Retail with an acquiring system of Sberbank of Russia using special developments of Impact-Soft company was made.

Its reduction in compliance to the legislation of the Russian Federation and to customer requirements on functionality of work with gift certificates and sales of goods on account of service became other feature and at the same time complexity of the project.

It should be noted that this stage in work with Grandee Kosmetik company was completed precisely in terms and all for calendar month.

Project Results

After successful system implementation in the first two shops, spring of 2007, within two and a half weeks specialists of Impact-Soft company together with the Grandee Kosmetik command automated three more shops: one in Moscow and two in St. Petersburg.

Thanks to implementation of this solution in the Russian shops Make Up Store the Swedish side obtains the complete information directly from cash registers in outlets now. "It is the first experience of similar cooperation at the Swedish company, - Alexander Bratslavsky notes. - The head office is happy with result of automation of process. It helps to improve quality of sales and to make an operational picture on all assortment lines".

LS Retail successfully solves a complex system of payment under different programs of loyalty and gift certificates. For example, in shops the program for sales of goods on account of service "An individual rate" is implemented. The makeup artist gives personal classes with the client. Having paid occupations, the client can select goods for the same amount.

During operating time Grandee Kosmetik showed good results on sales volumes and became the leader among all franchasing Make Up Store AD projects. In development plans for retail chain stores - opening of shops in all large cities of Russia.

Perspectives of development of the project

Successfully executed automation of the first five shops of Make Up Store network allowed their management and Impact-Soft company to make further plans of joint cooperation. So, automation of 10 more shops "Grandee Kosmetik" in the short term is necessary. "So far we implement the solution for front-office. We think of implementation in Russia to back-office as shops become more and our Swedish leaders it is inconvenient to manage them from the headquarters, - Alexander Bratslavsky says. - Will suit Swedes if we collect information from outlets at ourselves in the center. And then to send final digits to Sweden. In the nearest future we will give the Impakt-Softu task for development of such project".

Experience of implementation of LS Retail in Russia and abroad

Let's remind that the LS Retail system is implemented in Inter IKEA System B.V., companies Top Shop, National Gallery, GAP Collection, the largest amusement park in Copenhagen by Tivoli.

The localized version of a system is implemented by Impact-Soft company in network of retail stores "Alphabet of Taste", in network of drugstores Old Doctor, the company of retail "Dufry", network of computer shops Vobis, in network of perfumery shops "Arbat Prestige", etc. The industry solution provided to customers not only automation as such, but also allowed to organize and configure optimum business processes.

In particular, within one of the largest projects, to "the Arbat Prestige", all business processes of the company underwent serious changes during implementation. According to Sergey Kondarev, the Chief information officer of the company, it was caused not by the aspiration to adapt to Microsoft Dynamics™ NAV, and requirements of business which reorganization was anyway necessary: "But Microsoft Dynamics™ NAV at us - as a lifesaver, it is convenient to them to knock on the head, bridling unhealthy imaginations".

Main office of Impact-Soft company:
Moscow, B. Andronyevskaya St., 23, office 301.
+7-495-737-33-76|[mailto:info@impactsoft.ru info@impactsoft.ru| www.impactsoft.ru]