Cross Jeans

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 system – Microsoft 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.

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.

Implemented solutions

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

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.

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.

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.

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.