Implementation of Microsoft Dynamics NAV and LS Retail in Cross Jeans!
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Cross Jeans

Implementation of Microsoft Dynamics NAV and LS Retail in Cross Jeans

The retail landscape is changing at a staggering speed. Innovative solutions, mobile technologies and the widespread availability of the Internet redefined the expectations of consumers, who are more and more demanding and conscious of what they need and expect. To better address the needs of their customers, Cross Jeans decided to implement Microsoft Dynamics NAV and LS Retail solutions that streamline multi-channel retail management and ensure excellent customer service.

 

The solutions went live in January 2018. IT.integro – a strategic Microsoft Dynamics Partner in Poland was chosen as an implementation partner.

cross jeans
cross jeans

Dynamic growth of European fashion brand

Cross Jeans was founded in the 1940s and delivers and serves customers in many European countries. The company employs more than 6000 people in several factories and produces millions of pairs of jeans annually. Cross Jeans has its headquarters in Warsaw, Poland and Berlin, Germany and regional offices in Belgium, Czech Republic, Switzerland, Austria, Holland and Germany.

 

The Cross Jeans brand was designed for people who appreciate authenticity, originality and the superior quality of clothing. Today, Cross Jeans collections are sold in more than 2000 points of sales all over Europe.

 

For 25 years, the company’s mission has been to satisfy expectations of even the most demanding customers seeking products and services of the highest quality. Denim clothing that can be purchased in more than 25 showrooms and 200 multi-brand stores across Poland.

 

No doubt, the competitive advantage of Cross Jeans is its own design office located in Turkey, where new fashion collections, which are in line with the latest fashion trends, are created. The additional asset are the company’s own factories located in Turkey and Egypt. This is where the entire collection, which can be later found in online and brick-and-mortal stores, is manufactured.

 

The brand offering is addressed to diverse age groups. Cross Jeans products are purchased and highly valued by all age groups. Everyone from young millennials to older groups appreciate the classic design of denim clothing and its comfort of wearing. Shoppers interested in Cross Jeans offerings are getting younger and younger and the company strives to become the number one brand in the 18+ age group.

Wdrożenie Microsoft Dynamics NAV

We decided to implement Microsoft Dynamics NAV integrated with LS Retail because the existing ERP system limited the development of our businessWe were looking for a global solution – the one that was unified and could be used by all company locations. The solution that would provide secure and instant access to a coherent database and reliable analytical tools. To achieve the desired effect, MDMS – a module supporting the management of central data was implemented. The new tool allows more effective monitoring of business activities carried out in individual subsidiaries and seamless data synchronization

Przemysław Madejski, Chief Operating Officer, Cross Poland Sp. z o. o.

Challenges

The key project objective was to integrate all solutions used to manage B2B and B2C channels and to create a unified database within the ERP systemMicrosoft Dynamics NAV. That would allow them to prepare advanced analysis and reports by using in-built BI capabilities. Cross Jeans faced several difficulties, such as lack of data consistency and miscommunication, which made it difficult to conduct business processes effectively.

 

– We decided to implement Microsoft Dynamics NAV integrated with LS Retail because the existing ERP system limited the development of our business – says Przemysław Madejski, Chief Operating Officer, Cross Jeans – We were looking for a global solution – the one that was unified and could be used by all company locations. The solution that would provide secure and instant access to a coherent database and reliable analytical tools. To achieve the desired effect, MDMS – a module supporting the management of central data was implemented. The new tool allows more effective monitoring of business activities carried out in individual subsidiaries and seamless data synchronization – he continues.

cross jeans
cross jeans

Another challenge was to live up to customer expectations and maximize their satisfaction. It is not only innovations and modern technologies, but also customers and their evolving needs that have significant impact on the development of the retail sector.  What they expect is excellent shopping experience and multiple enhancements that prioritize convenience.

 

Cross Jeans decided to broaden their sales activities by introducing a loyalty program and a wide range of discounts and gift cards.

 

Microsoft Dynamics NAV and LS Retail implementation project was also aimed at:

  • Ensuring remote work and sales opportunities, without Internet access;
  • Integrating an ERP system with an e-commerce platform supporting wholesale and retails operations;
  • Streamlining the replenishment processes;
  • Integrating existing Targit BI tools with Dynamics NAV;
  • Implementing loyalty programs and gift cards.

 

In 2017, a decision was taken to implement Microsoft Dynamics NAV and LS Retail in the Polish branch of Cross Jeans. IT.integro was chosen as an implementation partner. Cooperation of these two companies dates back to 2013 when IT.integro carried out Targit implementation project in Cross Jeans that streamlined reporting between subsidiaries in Poland, Germany and Turkey. Additionally, IT.integro supported the German partner in implementing Microsoft Dynamics NAV in the German head office.

A major advantage of LS Nav is its intuitive interface and user-friendliness. It is particularly important to us, because the growth of our business leads to an increase in the staff headcount. Organizing training sessions each time a new employee is hired would be extremely costly and time-consuming. User-friendly interface and simple-to-use features limit to a significant degree the costs of hiring and onboarding new employees.

Przemysław Madejski, Chief Operating Officer, Cross Poland Sp. z o. o.

Implemented solutions

Microsoft Dynamics NAV 2016 was implemented in Cross Jeans in the following areas:
Finance, Sales, Purchase, Warehousing (shipments, receipts) and Electronic Banking.

Wdrożenie Microsoft Dynamics NAV
Wdrożenie Microsoft Dynamics NAV

Microsoft Dynamics NAV is the most popular ERP system of the Microsoft product family which has been designed for small and medium size enterprises. Currently, there are more than 2,700,000 users in 160,000 companies worldwide.  It is a global solution – supports multi-language and multi-currency transactions, which is the key requirement set by Cross Jeans.

 

The ERP system grants access to a unified database, provides maximum usability, convenience of use and unrestricted flow of information within the company. Microsoft Dynamics NAV integrated with LS Retail and Targit solutions ensure full exploitation of the company’s potential.

 

One of the primary reasons of implementing Dynamics NAV was an urgent need to integrate an ERP system with an e-commerce platform supporting wholesale and retail activities and automate warehouse processes.

 

With barcode readers that come with the implemented solutions, you can carry out warehouse processes (receipts, shipments, movements between warehouse locations, physical inventory) swiftly and efficiently. Moreover, new tools considerably reduce the number of errors made by employees and the amount of time that is needed to perform operations.

 

Targit Business Intelligence tool, implemented earlier, LS Retail and MDMS solutions were integrated with the ERP system.

 

– The project in Poland was carried out four years after implementing the systems in Germany. The solutions were successfully integrated and well received, that is why we decided to carry a global roll-out of the system in the Polish subsidiary. When deciding to implement Microsoft Dynamics NAV and LS Retail, we paid particular attention to the international reach of both solutions.  With multi-language and multi-currency features, it was possible to install the systems in all our European stores and continue the company’s growth – says Przemysław Madejski, Chief Operating Officer, Cross Jeans. We chose the solutions that were flexible, scalable and tailored to our specific business needs. What finally convinced us to choose Microsoft Dynamics NAV integrated with LS Retail, was a list of references provided by clients from the retail and fashion industry – he adds.

Wdrożenie Microsoft Dynamics NAV

LS Nav

LS Nav is a fully integrated add-on for Microsoft Dynamics NAV that ensures access to all business areas – Finance, Sales, Marketing, Inventory and Services.

LS Nav is a flexible and highly scalable software solution that caters to the needs of the retail industry. You can manage all operations from head office to POS terminals, track data from the time the transaction is initiated and provide full control over the business.

With LS Nav, that is fast to implement and easy to learn and use, you can increase work efficiency of the board members and sales team by providing powerful tools to manage your company and enhance customer service. Managers running an omni-channel business can monitor processes across all sales channels (web and brick-and-mortar stores) as well as analyze data related to inventory, customers, vendors, special orders and loyalty programs.

A major advantage of LS Nav is its intuitive interface and user-friendliness. It is particularly important to us, because the growth of our business leads to an increase in the staff headcount. Organizing training sessions each time a new employee is hired would be extremely costly and time-consuming. User-friendly interface and simple-to-use features limit to a significant degree the costs of hiring and onboarding new employees – says Przemysław Madejski.

Work offline

One of the major challenges the company was facing before the implementation project, was the need for a solution that would streamline sales activities and allow employees to work offline.

 

– Before Dynamics NAV and LS Retail implementation, Cross Jeans faced problems with sales processing when sudden communication breakdowns occurred – says Jakub Abram, Project Manager at IT.integro – To avoid similar situations in the future and to ensure continuous connectivity, resource redundancy, backup connections and evening support services were provided. By implementing new solutions, Cross Jeans stores can execute sales activities both online and offline – he sums up.

Automatic replenishment

Cross Jeans decided to implement tools that would streamline the purchase planning and product distribution processes. Users can use forecast features, allocate products to selected stores and optimize inventory levels.

 

– So far, the stock replenishment in each store required long hours of analysis carried out in Excel spreadsheets. With the automatic replenishment function, you can calculate the quantities of replenishment for each store/warehouse respectively and safety stock levels to prevent stock-outs. Based on the analysis of the current inventory levels and the sales history, the system generates documents and movements of items from central warehouses to individual stores – explains Jakub Abram.

 

The LS Retail Replenishment solution provide tools to simplify the planning and distribution processes, reduce the storage costs and ensure higher availability of items in warehouses and stores. The solution supports multiple forecasting methods to identify trends, based on the buying history and optimize inventory levels.

Implementing loyalty programs

Cross Jeans implemented two loyalty programs: one for employees and the other one for customers. It is an extremely important feature delivered as part of the LS Retail software.

 

According to the market research, 80% of Polish consumers use various types of reward programs and this trend continues to grow. Members of loyalty programs, once registered, receive many benefits for spending, collect points and exchange them for discounted products.

 

Our employees are equipped with the right tools to collect information on customers’ tastes, preferences and expectations, as well as their shopping history. Based on this data, it is possible to optimize marketing campaigns, perform customer segmentation and prepare personalized offers and promotions.

Discounts and promotions

Another requirement was to implement a promotion management module to create various types of campaigns with special deals and promotions for stores and manage them from the head office.

– In the retail sector, product’s life cycle is of special significance and is reflected in our promotional activities and marketing campaigns. Prices and related promotions correspond to different stages of the product life cycle – introduction, growth, maturity and decline – during which the most attractive offers are presented – says Przemysław Madejski. – With LS Retail, we can apply several promotion variants and, by doing it, improve competitiveness and be more reliable and attractive to our customers – he sums up.

The solution offers multiple promotions based on various techniques of reducing product prices, such as: “buy selected products at PLN 99,99”, “happy hour”, “three for two” packages, “buy one product, get one product half price”. 

LS Retail includes several tools for sales and price management. You can create discount offers, multibuy discounts and mix& match offers. Special offers are generated based on defined parameters, such as quantity, customer, loyalty group, payment method, coupons or transaction amounts. LS Retail supports multiple parameter combinations and you can set up diverse active promotions for each item type.

LS POS

LS POS system that was implemented in Cross Jeans is equipped with an intuitive graphic user interface and it’s designed for points of sales. The same POS interface can be used on all devices: desktops, tablets, smartphones and mobile POS terminals.

 

What makes the solution stand out is its intuitive simplicity and easy installation and configuration. It is used in individual stores as well as in retail chains.

 

– With LS POS and its user-friendly interface, employees can perform a wide range of activities: handle numerous processes (not only sales transactions), automate processing of special offers, discounts and returns in any store, register new members of loyalty programs and generate sales reports – says Jakub Abram.

Handling customer complaints

The complaint management feature is available directly in the system. One of the key enhancements is that sales staff accepting customer requests complete the form available in the system. The whole procedure runs quickly and smoothly.

 

All complaints are forwarded to the central registration. Employees can generate detailed reports, draw conclusions and introduce changes that will result in a reduced number of complaints.

Execution of sales and purchase transactions by using the size chart (matrix)

During sales transactions with wholesale customers and purchase transactions with vendors, Cross Jeans uses the size chart (the so-called “matrix) that was developed by IT.integro consultants. It is possible to place orders based on a transparent table showing combinations of patterns and sizes. As a result, sales of product models with different sizes can be improved significantly.

Additional solutions

Additional solutions that were combined with LS Retail included:

  • Registration of the number of visits in brick-and-mortar stores. Based on data that was obtained in this way, employees are able to perform analysis and calculate the conversion factor for each store in Dynamics NAV;
  • Registration of expenses for individual stores;
  • Integration of POS system with terminals which speeds up the sales cycle and reduces the number of errors made by cashiers (e.g. entering incorrect amounts or payment methods);
  • Integration of the system with shipping companies to handle product deliveries from the head office and individual stores.

Master Data Management System

Another solution that was implemented in Cross Jeans  was Master Data Management System optimizing synchronization of data in all company locations.

 

When working on separate databases and multiple systems, it was extremely difficult to ensure timely and efficient communication, provide a common price and distribution policy and manage all business areas effectively.

Personal Data Management Solution

Following the entry into force of the General Data Protection Regulation, Cross Jeans decided to implement Personal Data Management Solution that was developed by IT.integro and adjusted to the requirements of the retail sector. The solution ensures compliance of Microsoft Dynamics NAV with the new legal act.

It offers a set of functions that support Data Controllers enabling them to control how the obligations have been implemented in the scope of right to be forgotten, right to access data and right to data portability.

Electronic Banking

Another solution implemented in Cross Jeans was E-banking module which is a component of the standard Polish functionality for Microsoft Dynamics NAV. E-banking facilitates  the handling of banking transactions, such as export of transfers and import of bank statements. All accounting operations are processed quickly and efficiently and the quality of work is greatly enhanced.

 

 

Implementation of Dynamics NAV and add-on solutions entailed huge logistic (the purchase of new IT infrastructure) and organizational changes (employees).

 

– In the past, each department used their own Excel spreadsheets. Relevant information was communicated during meetings. There was no common database storing all essential data concerning delivery dates, prices and special offers – says Przemysław Madejski. – By implementing an ERP system and integrating it with other business solutions, we could finally streamline communication between employees, provide instant access to knowledge on business processes – he sums up.

Targit

Targit was implemented in Cross Jeans in 2013 when reporting was one of the biggest pain points for employees. The analyst’s task was to correct source data stored in Asseco WF-Mag system and Excel spreadsheets and generate reports for other employees.

 

– Before Targit implementation, we used to spend a couple of hours, sometimes even the whole day waiting for a report prepared by an analyst. It became particularly complex in case of totally new reports when persons requesting analysis were not quite sure what they wanted and what they needed the report for. Targit offers endless opportunities to experiment with analysis results, as all its users, not only financial analysts are in charge or preparing reports –  says Przemysław Madejski.

 

Integrating existing Targit BI tools with Dynamics NAV became a further project objective. At the moment, Targit is fully compatible with the ERP system.Users are allowed to generate simple reports based on multiple sources and dashboards on their own. It is a complex and handy tool providing information that can be used in in-depth process analysis and efficient decision-making. It supports analytics, controlling, result forecasting and risk management.

 

– Business Intelligence solution allows in-depth retail analysis – says Jakub Abram – You can get to know the target groups of consumers by monitoring their buying  behaviors, measuring the profitability of sales promotions and customer traffic in brick-and-mortar stores. The collected data will serve as a reliable source to conduct sales activities more effectively, create personalized marketing content and better adapt offerings to meet customer expectations – he sums up.

 

Targit provides a number of complex report templates, such as Daily Sales report (presenting sales results from the previous day, generated automatically and forwarded to the head office) or Profitability report (showing sales results against costs). Beside sales data, reports display costs such as lease, remuneration, etc. which are recorded for each store, sales representative. This type of report can be used for net profit analysis.

In the past, each department used their own Excel spreadsheets. Relevant information was communicated during meetings. There was no common database storing all essential data concerning delivery dates, prices and special offersBy implementing an ERP system and integrating it with other business solutions, we could finally streamline communication between employees, provide instant access to knowledge on business processes.

Przemysław Madejski, Chief Operating Officer, Cross Poland Sp. z o. o.

Implementation

Microsoft Dynamics NAV implementation project took 12 months. On 1 January, 2018, the system went live in all 25 stationary stores, which was an enormous challenge. The system launch was preceded by two-month testing conducted in two selected Cross Jeans stores.

 

– It was a high-involvement project for our employees. It was carried out in compliance with Microsoft Dynamics Sure Step methodology, so users had ongoing control over performed tasks – says Przemysław Madejski. – They had a chance to get to know the system by writing acceptance scripts on their own. Now, they take responsibility for the problem-solving process – he adds.

Wdrożenie Microsoft Dynamics NAV
Wdrożenie Microsoft Dynamics NAV

Benefits

The benefits of implementing Microsoft Dynamics NAV and LS Retail are numerous: optimization of processes, enhanced competitiveness of Cross Jeans stores and the ability to adjust the solutions to the current market trends.

 

– One of the distinctive advantages of implementing Dynamics NAV is the potential for integration of B2B, B2C solutions and Business Intelligence tools with the ERP system. As all relevant data is consolidated into single database, Cross Jeans has greater day-to-day control over processes – says Przemysław Madejski. – LS Nav gives us comprehensive insight into the company’s performance. We are able to analyze data on an ongoing basis, plan future logistic and promotional activities.

 

The benefits of implementing a complete retail management software system are numerous: enhanced customer service, loyalty programs and better purchase conditions.

Some of the most important benefits that were gained by implementing Microsoft Dynamics NAV are as follows:

  • Optimization and reorganization of business processes;
  • Better use of the company’s potential by integrating the ERP system with BI solutions;
  • Finer control over accounting processes with the finance management module;
  • More secure and effective sales processes with the ability to work remotely;
  • More effective cooperation with customers, vendors and partners through the integration of an e-commerce platform with an ERP system;
  • Increased work efficiency and reduced number of errors made by warehouse employees by using barcodes during inventory receipts and shipments;
  • Improved monitoring of costs with the accuracy of cost centers;
  • Efficient management of tasks and due dates with tools for sales agreement registration.

Implementing LS Retail enabled employees to:

  • Streamline sales processes and enhance customer service;
  • Take care of customers by introducing a loyalty program;
  • Make the purchase process more attractive by conducting various promotion campaigns;
  • Optimize store replenishment by granting availability of products in stores at lower effort;
  • Deliver enhanced shopping features supporting return transactions in any store or allowing for the use of gift cards.

– An additional benefit of implementing Microsoft Dynamics NAV was the possibility to restructure and optimize business processes conducted within the company. During the implementation phase, we had a chance to analyze our actions and identify problems. Then, we were able to tailor the ERP system to our needs – says Przemysław Madejski.

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