Løvbjerg operates a total of 16 stores across the country and had the largest revenue increase out of the top grocery chains in Denmark in 2020.
Løvbjerg’s success is built on their assortment strategy, which is to offer a broad selection of products at competitive prices. The company also prides itself on giving its store managers and staff members the authority to make informed decisions, which enables Løvbjerg to attract skilled employees who meet, quickly and effectively, the needs of their customers.
Business case
In the past, Løvbjerg ran their business with multiple solutions including NewPOS and an outdated version of Microsoft Dynamics ERP. The POS system was end-of-life, and it was impossible to update the ERP system due to the many customizations made to meet the company’s needs. “The system was so heavily tailored that only a few consultants, and occasionally only one, had a full overview and knowledge of the solution,” says Rikke Klausen, IT and Project Manager at Løvbjerg. “This was a major vulnerability we wanted to avoid.”
The management at Løvbjerg decided it was time to move to a more advanced and easy-to-use software solution. The company was also hoping to increase transparency and collaboration within the organization by keeping all their information in a single database. “We did not want to be slaves to data, but rather automate processes around purchasing and streamline our workflows,” says Klausen.
The solution
The company evaluated multiple solutions and suppliers before selecting Microsoft Dynamics 365 Business Central and LS Central. The solution was chosen primarily because it is unified: LS Central combines ERP, POS, and retail functionality in one single system. “One of our criteria was to have a system that was not too large and not too complex for our company,” says Klausen. “We also knew about one competitor in the industry who had a very positive experience with LS Central, which confirmed to us that the system was a proven and reliable solution for a company of our size.”
The company decided to run LS Central as a hybrid SaaS (Software as a Service) solution to combine the flexibility and scalability of the cloud and the reliability, security, and control of on-premises. Unlike most SaaS solutions, LS Central SaaS POS can run offline, which means that even if the internet goes down, the POS is always operational, and the company can keep selling. “In this way, we can still run the POS and thereby the business,” says Klausen.
The company contacted Cepheo, a local LS Retail partner, to run the implementation, so the system would fully meet the company’s requirements. Integrations were carried out with:
- A third-party mobile payment solution, allowing customers to pay with their phones.
- The Danish lotto app Danske Spil, enabling customers to buy lottery tickets at the checkout rather than at a separate kiosk.
Benefits
Although the implementation of the solution is still ongoing, Løvbjerg already sees the benefits of LS Central. “It simplifies our IT system landscape significantly and makes us more efficient by covering all our needs with fewer integrations and less complexity,” says Klausen.
The company now gets access to real-time, accurate inventory for all locations. “Before, we didn’t have any overview of which products we had in stores and in which quantities,” says Klausen. The company knows this will enable them to reduce waste and shrinkage during the inventory process. “By getting more detailed knowledge of our product sales and consumption, we can calculate our gross profit more accurately and manage our business more efficiently.”
Løvbjerg believes the new system will enable them to keep up with the times. “We are no longer limited by an outdated system,” says Klausen, “LS Central makes our company more resilient, modern, and agile.”
In the long run, the company aims to provide even more flexibility to their customers by offering them the possibility to shop online with eCommerce for LS Central. They are also exploring the self-service checkout options offered in LS Central. With LS Central, the company gets faster access to newer technologies, such as AI, that they can use to their advantage. “Now we have the freedom to adopt new technology quickly if we see an opportunity in the market,” says Klausen. “This will make us more adaptable and able to make better decisions based on a solid data foundation.”
