A Look Under the Hood of Navision Retail management. Helping companies make better business decisions and stay ahead of the competition.

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1 A Look Under the Hood of Navision Retail management Helping companies make better business decisions and stay ahead of the competition.

2 Welcome Vasuki Rajagopal Managing Consultant Tectura ( Thailand).

3 The Retail Industry The challenge Retail Management Inventory control POS management Primary segments Retail & Trading Companies

4 What are we offering!! Small and Mid Size Business Microsoft Business Solution Navision - LS Retail LS Retail is a total Retail management solution build on Microsoft Business solution Navision. Then what is this Navision!!

5 Microsoft Core Navision Microsoft Core ERP Standard Microsoft Navision Core ERP Microsoft Business Solutions Navision is a Complete ERP solution covering a wide range of industries. An integrated business software solution for mid-size companies A technologically advanced, industry-leading accounting, distribution, manufacturing, and e- business management software solution Renowned for simplicity, ease of use, and adaptability More than 40,000 Microsoft Navision customers in over 100 countries & Multi lingual Navision connects information from every corner of your business Completely Localized in accordance to THAI revenue regulation & Bilingual.

6 The market for Navision HIGH-END MARKET MID-RANGE MARKET XL L M > 250 M USD > 20 M 250 M USD > 5 M 20 M USD LOW-END MARKET S X 1.5 M 5 M USD < 1.5 M USD BasedonNavision scriteria

7 Microsoft Core ERP So what is LS Retail!! LS retail is: Total Retail management solution build on Navision One solution for all components of business H.O. Back office Retail management + core ERP (ERP = Finance management, Supply chain & Distributions, production) Stores-Instore server POS terminals- PlusPOS Integrated modules to support 3 rd party POS,RFID and other hand held devices.

8 RETAIL OFFICE POS LAYOUT Terminals In-store server RETAIL Back office ( In-store) Store Boundary H.O Back office

9 Little more detail! Ok.. Lets start with what Navison Core ERP offers in brief,than we can go to Retail Management in detail.

10 Disconnected Business Processes

11 Financial Management Finance Streamline the way you work

12 Supply Chain Management:Manufacturing Process / Manufacturing Easily adapt to rapidly changing customer demands

13 Supply Chain Management: Distribution Logistics / Procurement Increase access to real-time information

14 Customer Relationship Management Sales / Marketing Improve relations with customers and suppliers

15 Increase Your Productivity by integration Streamline business operations and improve efficiency Develop information management and access Enable highly productive work environments

16 Complete solution Increase your productivity Sharpen your competitive edge Increase your business

17 Unique architecture GUI (Windows) Integrated Development Environment Database Employees Commerce Portal Microsoft Navision Database Server Customers & Business Partners Application Server Worldwide Generic Objects Microsoft SQL Server 2005 External Applications Country-specific Objects Customer-specific Objects Vertical Solutions Objects

18 Unique and Customized Implementation Vertical Solutions Access to source code Tools and support to build a successful business

19 LS Retail Brief introduction

20 Retail Inventory, A New Perspective: Avoid looking at inventory from the wrong perspective and learn that the wrong perspective may be a recipe for bankruptcy Solving the Inventory Productivity Puzzle Easy methods for reporting and analyzing inventory 5 Steps to improving inventory productivity

21 Inventory Retailers largest asset Technically should be a short term asset, but for many it makes it into the fixed asset category Stock Turnover and GMROII are key measures of inventory productivity Most retailers have had very small increases in past 25 years in either measure

22 A New Way To Think About Inventory Ultimately the goal of every retailer is to never own inventory ALL INVENTORY IS EVIL and should only be tolerated for a very short time Perfection is sell and buy Businesses that own inventory are called museums

23 Four Measures That Are Used Stock Turnover in Units (units sold average unit inventory) Retail Stock Turnover (net sales average inventory at retail value) Cost Stock Turnover (cost of sales average inventory at cost) Asset Turnover (net sales average inventory at cost) Note: All are generally reported for a 12 month period unless specifically qualified as a shorter time frame

24 Of The Four The traditional formula for retailers is Sales divided by average inventory at retail value The other three are either operational (units) or financial and although used at certain times they are not the benchmark formula for retail inventory turnover

25 Factors That Affect Inventory Turnover SKU Intensity Re-Order Cycle Time Nature Of The Product Safety Stocks and over buying

26 Safety Stocks and Over Buying Just in Case merchandising is far too prevalent An accurate sales forecast with a well thought out stock to sales ratio is key Inventory has to relate to the sales plan, there must be a plan to buy as well as a plan to sell Ultimately safety stocks decrease Customer service by clogging up the system, too much of what does not sell, not enough of what does

27 Inventory Productivity Ultimately the shorter distance between raw material and consumption the greater the productivity Raw Material Inventoryismerelythe physical correlate of deficientinformation Evans & Winster, Blown to Bits Consumption Time Purchase Potential for Waste Sale

28 Inventory Productivity For retail this means the shortest time possible between purchase and sale This also reduces the risk of inventory becoming obsolete or customers changing their buying habits or tastes Raw Material Consumption Time Purchase Sale Potential for Waste

29 Some Additional Inventory Metrics Stock To Sales Ratio Check Out Rate Weeks Cover Percent Fresh Best Sellers Slow Sellers Non Moving

30 5 Suggestions For Keeping Inventory In Line 1. Have an accurate sales forecast/plan 2. Determine proper stock to sales ratio (always plan a decrease in SSR each month) 3. Measure percent fresh each month 4. Prepare aged inventory list and aggressively use markdowns 5. Never allow purchasing above plan spend 85% of OTB

31 Strategies For Effective Markdowns Markdowns are tuition that we pay for an education about our Customer NEVER take a markdown unless you know the reason Your first markdown is the cheapest Key indicators are current weekly rate of sale divided into on hand 1 to 8 weeks, no action likely 9 to 12 weeks, 10 20% 13 to 16 weeks, 30% 17 to 26 weeks, 50% Over 26 weeks, +60% Over 52 weeks, consider donating!

32 Productivity Dashboard Numbers to Watch Every Month TY vs LY Summary All Stores November 2004 TY LY Stock to sales ratio Turn to date GMROII to date $2.01 $1.97 Percent fresh 65% 70% Weeks cover Potential Problems!

33 What Is Needed Real time visibility of the complete supply chain Visibility as far down and up the chain as possible This means supplier inventory/wip, in transit, OH and demand/sales State of the art technology and deep understanding of its use LS RETAIL provides the perfect solution!

34 Building Blocks Retail Item Store /Restaurant POS Terminals

35 Retail Item Variant Frame work Retail Item Attribute Item Category Product Group Item Family Special Group

36 Pricing,Discount. Different price for different stores or customers! Multiple prices Retail Item Promotions, discounts, special offers Costing

37 offers Promotions Discount offers Multibuy discount Mix & match Offers can be for an individual Item, Item Category or for product Group. More than one offer is allowed at any given time Offers work in order of priority System notifies any overlapping or wrong offers!!!

38 POS Configurations On line Off line w./replicator On line w./terminal Server Off line w./transaction Server (semi-online)

39 On line configuration DB Head Office Server RBO/LS POS Store LS POS Client LS POS Client Client LS POS Client LS POS Client LS POS Client

40 On line configuration Advantages: All transactions are updated in real-time All information is up to date Simple installation/upgrades Flaws: Load on network and database server Lesresilient(Network/Server )

41 Off line configuration DB Head Office Repl. server Store RBO and Repl. server DB LS POS DB LS POS DB LS POS DB LS POS DB LS POS

42 Off line configuration Advantages: Little load on network and database server Very reliable/resilient Flaws: Transactions are not updated immediately More complex when installing More work when upgrading

43 Off line w./transaction Server DB Head Office Store RBO and Repl. server Repl. server DB LS POS DB LS POS DB LS POS

44 Off line w./transaction Server Advantages: Transactions are updated immediately (if possible) Some Information is up to date Can make requests to Databases Very reliable/resilient Flaws: Still Complex when installing Still More work when upgrading

45 LS POS - OPOS Devices POS Printer Line Display Magnetic Stripe Reader Cash Drawer Scanner Check Out Scale (Scan Scale) Keylock Tone Indicator Magnetic Ink Reader

46 Processes supported Price checking Information Shelf price check Shelf label order Stock counting Stock adjustment Waste management Return management Sales Orders Order Picking Purchase Ordering Receiving

47 Handheld options Generic Handheld Terminals Collect barcode & quantity No-processes Offline Handpoint Handheld Terminals Master / Worksheets Online Handheld Terminals Data and functions from central handheld server Only a client on handheld terminal

48 Connectivity All versions of Microsoft Navision ( ) Microsoft SQL Server 7/2000/2005 Oracle 8/9/10 Microsoft Axapta 3.0

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