Element72, which manages brands Oakley, Keen, Houdini, Gramicci, '47 Brand, Goal Zero and Biolite, operates 86 stores that are supplied through their own warehousing and distribution centers.
Business case
For many years, the company managed their business using Choco POS and local ERP software, Impress; two disparate systems that worked independently of each other. Their business information was often stored in multiple places, making it difficult for the various departments to access and manage information efficiently. The company struggled with:
- Lack of communication between the stores and warehouse, and difficulties managing and controlling inventory
- Too many hours spent on manual and repeat work, such as filling in spreadsheets with promotional prices, stock taking, and day-end procedures, for over 50 stores
- Trying to reconcile data manually across the two systems
These processes required a significant amount of time and effort from the staff and increased the risk of errors and inaccurate data. The management team at Element72 started looking for a new management system that would support all areas of the business with one platform, and provide the agility required for fast decisions and future growth. The company’s main requirement was to have a single platform that offered both POS and ERP, with minimal customizations needed.
Solution
Local LS Retail partner AVision recommended LS Retail’s all-in-one business management software, LS Central, which extends Microsoft Dynamics 365 Business Central ERP. LS Central enables retail businesses to handle back-office tasks, financials, inventory management, product management, sales, and front-office tasks, all within the same platform.
Despite small delays in the rollout due to the Covid-19 outbreak, all stores from Element72 successfully went live with the new solution. “We worked in close collaboration with AVision to build the solution to solve our main business problems,” says Nutkrita Luangpaiboonsri, Chief Operating Officer at Element72.
Benefits
After the stores went live with LS Central, businesses processes improved significantly for Element72. In addition to getting access to centralized information, the company has also increased communication between stores and the back office. “We could finally reduce duplicated tasks and the huge numbers of errors that occurred in stores,” says Luangpaiboonsri. “We were able to streamline operations across locations and departments and optimize our inventory and replenishment processes.” Since implementing the new system, Element72 has:
- Increased sales in stores – The company can monitor sales performance in real time and make decisions based on purchase history and trends. They can easily generate reports about specific products and variants, and make sure their best-selling items are always in stock. “After day-end processes, all sales and financial information from stores are automatically transferred back to head office without any error,” says Luangpaiboonsri. “Besides ensuring data accuracy and consistency, it empowers our sales team to make better decisions based on reliable insights.”
- Gained real-time stock visibility and control – Employees working at the warehouse and at the stores can check what stock is available and in which location, any time they need, while also keeping track of stock in transit. “It enables us to optimize inventory levels, reduce stockouts, minimize overstocking, and avoid lost sales due to poor stock availability,” says Luangpaiboonsri. “We can see, in real time, the quantities left at each location and allocate products to stores that need them.”
- Improved staff productivity and satisfaction – LS Central simplifies the employees’ work by reducing unnecessary, manual tasks around data entry. Employees can finally dedicate their time to areas that matter most, like customer satisfaction and engagement.
- They can create personalized promotions easily and effectively – The Member Management module in LS Central enables the company to identify their customers, keep track of their shopping habits, and nurture their relationship with them. “Our marketing team can create campaigns that are more effective and provide personalized experiences that align with customer expectations, leading to increased customer satisfaction and loyalty,” says Luangpaiboonsri.
When they look at how the Covid-19 pandemic accelerated the shift towards online shopping, Element72 now wants to develop their eCommerce activity and sell through their own website and through other eCommerce platforms and marketplaces, as well. “We believe LS Central will sustain our business for the long term and help us adapt easily to unpredictable changes if they happen,” says Luangpaiboonsri.
