As the parent company of Masterhaus, the first hypermarket for construction materials in Bulgaria, the company features a vast selection of high-quality building supplies in five locations. In 2014, Boshnakov Ltd. launched Masterhaus Online, a comprehensive online store that allows customers to shop whenever and wherever they want.
Business case
Masterhaus struggled with operational efficiency after facing multiple challenges with their previous IT system. The system offered poor visibility into daily operations, which caused delays and inaccuracies in processing both online and offline sales for the company. Because their team couldn’t synchronize information across the different departments, Masterhaus often experienced miscommunications, leading to a fragmented customer experience. As a result, Masterhaus found it difficult to respond promptly to inquiries or issues and meet customer expectations.
Solution
To solve their challenges, local LS Retail partner NavTech Group analyzed Masterhaus's needs and recommended LS Central, a comprehensive software solution specifically designed for the retail industry. LS Central makes it possible to connect retail-specific functionality such as Point of Sale (POS), inventory management, replenishment, store operations, and customer loyalty on top of Microsoft Dynamics 365 Business Central ERP. “Our value lies in our ability to adapt to market changes, and we are always seeking innovative solutions,” says Viktor Boshnakov, Chief Executive Officerat Masterhaus. “This is one of the reasons we chose LS Central. The system is highly scalable and customizable, which aligns perfectly with our growth objectives as a leader in retail construction.”
Some of the key functionalities Masterhaus benefitted from after switching to the new system include:
- Optimized inventory replenishment
The Replenishment functionality calculates the number of items Masterhaus needs in each of its stores using sales trends from the past few weeks and the remaining stock in the warehouse. Each replenishment order includes detailed information about the products, sales history, current stock levels, and suggested availability until a specified date.
- Communication to the online store
The Navtech team integrated Masterhaus’s online shop with LS Central, eliminating manual data entry and data duplication across multiple systems. This synchronization enables accurate data sharing between all physical and online stores, which makes adjustments to prices based on discounts and promotional campaigns much easier. With all sales channels working together, Masterhaus’s team can make informed decisions to optimize their product offerings and create customized campaigns and rewards for their customers.
- Simplified day-to-day processes
By bringing key POS functions into a single platform, LS Central enables Masterhaus to efficiently manage daily processes and ensure flawless operations. The team can quickly and accurately view their sales while accessing real-time product information. The system facilitates the processing of advanced payments, common in retail construction, connecting to fiscal printers, and enabling customized receipt formats. Users can generate intermediary and daily reports to analyze performance when they need to. Additionally, they cancreate client offers in the back office and manage them directly at the POS, saving time at the register.
- Easier management of the loyalty program
Masterhaus can now manage their loyalty program and monitor members’ purchasing habits to create exclusive benefits and rewards tailored to their preferences. The system also empowers Masterhaus to understand customer trends and behaviors, giving their team the ability to offer promotions and campaigns tailored to their customer base.
Benefits
LS Central has automated essential processes for Masterhaus, resulting in smoother operations and improved customer service. Some benefits the company has experienced since implementing LS Central include:
- 360°degree view of business operations
Like all players in the construction industry, Masterhaus must closely monitor all aspects of its business. With LS Central, the company gets real-time visibility into sales, inventory, and customer information enabling the team to swiftly identify and address challenges. “No more data inaccuracy, miscommunication across departments, high operational costs or inefficient inventory allocation,” says Boshnakov.
- Improved employee productivity
The implementation of LS Central has significantly boosted Masterhaus’s employee productivity. Manual warehouse management has been replaced with simplified inventory processes such as order management, purchasing, and replenishment. For instance, the barcode scanning feature in the Mobile Inventory functionality allows employees to scan items and create transfer orders by directly importing data from their mobile devices into the system. This automation enables the team to complete more tasks in less time while minimizing mistakes.
- Reduction of stockouts and overstocking
Thanks to LS Central, Masterhaus can feel confident they are always stocked with the right products, at the right times. The automated replenishment feature effectively prevents stock shortages, significantly enhancing customer satisfaction. Additionally, the demand forecasting capabilities enable the team to understand potential spikes in demand, and ensure they are well-prepared to meet customer needs.
- Faster, more personalized customer service
LS Central has significantly improved the shopping experience at Masterhaus. When a customer arrives to purchase materials, staff can immediately direct them to the items they need with a quick and simple search in the system, eliminating the frustration of searching the store. Additionally, attractive promotional offers such as “Buy three, get one free,” loyalty discounts, and clearance sales have enabled the company to drive more sales and keep customers coming back.
