With over 50 stores throughout Nicaragua, La Colonia is the country’s largest supermarket chain. The company also runs its own distribution chain, a fruit and vegetable collection and processing center, a meat processing center, a fast-food production center, and a bakery.
Business case
Before they moved to LS Central, La Colonia had been using the same local legacy POS system for more than 20 years. When the software began creating issues and limiting their ability to grow, the company realized they needed to invest in a more advanced system. “The system we used offered limited functionalities and we depended solely on the developer to resolve issues or add new functionalities,” says Francisco Mantica, IT Director at La Colonia.
The company also knew that optimizing their IT system landscape was crucial to keeping up with changing market conditions and customer demands. “Customers are changing shopping habits due to the convenience of online shopping, the increasing desire for personalized experiences, and the growing emphasis on offers and savings,” says Mantica. “We as a supermarket must find ways to offer what customers want and stay competitive without sacrificing our profits.”
Additionally, issues with supply chain management have greatly affected productivity and growth for many businesses, making it difficult to track and monitor where products are at any time. “Global disruptions in supply chains have emphasized the importance of enhancing agility and efficiency, fostering stronger supplier relationships, diversifying sourcing strategies, investing in robust logistics, and leveraging technology to improve visibility within the supply chain.” With this in mind, the company started looking for a future-proof POS and retail management software that would enable them to offer excellent customer service and provide them with agility.
Solution
La Colonia evaluated solutions available on the market and decided to move forward with LS Central for retail and Microsoft Dynamics 365 Business Central. They chose LS Central based on several criteria, which included:
- Robust retail features
- Flexible architecture and easily configurable POS devices
- User-friendly POS interface
- Ability to streamline operations and enhance overall business efficiency
- Proven track record with supermarket and grocery chains worldwide
- Seamless integration with other systems
“Promotions management was critical in our decision, as we work with several types of promotions,” says Mantica, “The ability to react promptly and effectively to market trends and customer demands was of utmost importance to us.”
Local LS Retail partner Nostico took care of the implementation of the new system. The project was developed in two phases, starting with the POS system, including purchasing and payment tools for 33 supermarkets. The next phase focused on the implementation of the ERP system.
Benefits
Since they implemented LS Central, La Colonia has seen multiple benefits. “LS Central empowers us to provide a seamless customer experience, adapt to market dynamics, and stay competitive in the supermarket industry,” says Mantica. The company now enjoys:
- A holistic view of their business – “LS Central provides us with a comprehensive view of our operations, enabling informed decision-making and quick responses to market changes,” says Mantica. “By integrating multiple aspects of our business into a single software solution, we save time, improve accuracy, and enhance our ability to meet customers’ needs effectively.”
- Real-time view over inventory – “The new system allows us to have better control over stock levels, avoid overstocking or stockouts, and optimize our purchasing and replenishment strategies to ensure we have the right products available for our customers,” says Mantica. “Previously, we depended on a team of people to do this, spending a lot of time and effort on getting income statements for each supermarket. Now, we can see these numbers whenever we want.”
- Effective inventory replenishment – The planning and replenishment functionality in LS Central facilitates inventory counting for multiple stores and suggests which products should be replenished. “The system has significantly increased our efficiency, streamlining our processes and reducing manual tasks,” says Mantica.
- Optimized pricing – The company can easily adjust and optimize their prices based on market conditions or customer behaviors and apply them to all locations. “We can react seamlessly to cost increases or decreases therefore offering customers the right price point,” says Mantica.
- Increased customer satisfaction and loyalty – La Colonia has been able to create a seamless and consistent experience across all channels and personalize their offers to the preferences of each individual customer.
The company says the implementation of LS Central has brought positive changes across all areas of their business, resulting in increased productivity, efficiency, and control. They have seen:
- A 30% decrease in time spent on non-value-added activities.
- A 50% decrease in time spent preparing bank account reconciliations.
- Significant cost savings and reduced overstocks, thanks to the planning and replenishment functionality.
“LS Central offers a range of opportunities for our future growth and success,” says Mantica. The company can’t wait to expand their eCommerce capabilities to provide a seamless and personalized online shopping experience. They will be focusing on enhancing their mobile and omnichannel strategies to ensure a cohesive and convenient experience across all touchpoints. Supported by Nostico and LS Retail, La Colonia know they can achieve their objectives and thrive in Nicaragua’s retail future.
