Panatrade Caraka is one of Indonesia’s leading sporting goods retailers, specializing in athleticwear, footwear, and sporting equipment. The company operates multi-brand retail chain FISIK, sneakers brand Our Daily Dose, and football boots brand SPECS. They’re also responsible for the development of sports brand MIZUNO in the local market, sports equipment retailer Mitre Sports International, and the PIERO shoe brand.
To accelerate business expansion, PT. Panatrade Caraka separated its retail division in 2015 into a company called PT. Prestasi Retail Innovation. PT. Prestasi Retail Innovation manages the group’s retail operations while PT. Panatrade Caraka focuses on brand management and wholesale.
Business case
Prior to switching systems, the company was using many vertical applications to manage their business, which relied on multiple data sources to function effectively. These included a Point of Sales (POS) system, a Mobile Shop-in-Shop (SIS) platform, a Supply Chain Management solution, an Enterprise Resource Planning (ERP) system, and an in-house Warehouse Management System (WMS). All the different systems acted as separate entities that couldn’t communicate, leading to inconsistent and unreliable data. Because of its ambitious plans for growth, the company knew that disparate, standalone systems could no longer meet its requirements.
Solution
Panatrade started looking for a new software solution that would:
- bring together all their core business information in one, centralized database and provide the company with real-time visibility across all locations for brands Our Daily Dose and FISIK.
- streamline processes and execute successful product launches, with quick and accurate access to customer orders.
- allow seamless communication between the stores and warehouses, ensuring fast delivery to customers across the country.
Microsoft Dynamics 365 Business Central ERP and LS Central for retail fit all the company’s requirements, making the choice clear: “We selected LS Central primarily because it provides real time data replication and synchronization that would help us unify our data across the whole business,” says Pak Aminta, Director of Panatrade. LS Centralis an an end-to-end software solution that extends the Business Central ERP with retail functionality including POS, store operations, inventory, supply chain management, financials, loyalty, and more, to provide a complete overview of the business.
Panatrade worked with LS Retail partner R Systems in Indonesia, to install LS Central in 40 of their stores and adapt it to local legal and language requirements. During the implementation, additional functionality was developed for auditor and fiscal compliance. “The implementation of the new system went very quickly, although it took some time to get the system stabilized,” says Aminta, “but given the unique circumstances of the Covid-19 pandemic, and how most of the meetings and analysis took place online, it’s a big achievement to have completed within 10 months.”
Benefits
Since switching to LS Central, Panatrade has vastly enhanced efficiency in their operational practices and can now make sense of information across their business easily. The company is also able to provide faster service and quickly attend to customer requirements. Other benefits for Panatrade include:
- One centralized database. All transactions and recorded data for each of their locations is stored in a single database and easily accessible through the back office, allowing the business to make faster, more informed decisions.
- Reduced manual work. With all their information accessible through a single system, the company no longer needs to waste time trying to manually align data from different systems like before. Now, they can see their data in real time, and can feel confident the information is clear, accurate, and up to date.
- Optimized warehouse processes. Thanks to real-time inventory visibility, daily operations of the warehouse have significantly improved, including the receiving and shipping of goods, order fulfillment, and inventory management. This has also positively impacted customer satisfaction by ensuring orders are fulfilled correctly and on time.
- Effective pricing and promotions. Customer information, such as purchase history and preferences, is instantly updated in the system and can be used to create personalized offers and discounts that will encourage them to come back.
- Effective variant management. The company can easily create and track specific product variants separately, allowing them to see which color, size, style, etc. sells the most across their stores, and make sure they always have the right products on the shelves at the right price points.
- Higher employee productivity and satisfaction. By having a user-friendly business management system that simplifies everyday work, Panatrade can ensure their employees are able to work quickly and efficiently. “LS Central is easy to adapt and easy to operate, while also offering a simplified flow of transactions,” says Aminta. The next step for Panatrade and their IT partner R Systems is to roll out the LS Central solution in more stores and take advantage of other functionalities to improve customer experiences and service. “We are looking forward to structuring a loyalty program within the LS Central software to increase our customer retention,” says Aminta.
