How Specialised Retail ERP Prevents Company Owners from Being Cheated by Employees and Suppliers

How Specialised Retail ERP Prevents Company Owners from Being Cheated by

Employees and SuppliersRiga Food

2011 September 7-10

Topic in Detail

My task today will be to show you that a specialised Retail ERP can help reduce losses caused by:

•Company employees

•Company suppliers

Why we talk about that at all

Because people are

just people and they

make mistakes

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Methodology• Conducted by Centre for Retail Research

• Mail survey to retailers in 42 countries• Highest number of countries ever surveyed• Russian retailers added for first time

• 1.103 retailers responded• Aggregate sales of €712,7 billion• Europe/Russia: 571 retailers; €335,735 Million in retail sales

• Timeframe of findings: July 2009-June 2010

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European Shrinkage By Country

• Russia, Turkey well above global averages

• Austria and Switzerland the lowest among measured European nations

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• Small, inexpensive, “mobile” items• Electronics• Cosmetics• Alcohol/food• Clothing• Jewelry

Most-vulnerable merchandise

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Sources of Retail Losses in the Baltics

Employee theft

Do not scan some items Enter wrong quantities Enter codes of other cheaper items Do not register sales transactions at all Take back items that have not been sold Give too big discounts Enter lower prices Sell their own items …

Employee theft - Modern Retail EPR can:

Support Perpetual inventory method

Support very rigid user rights policies

Log every change in the setup data

Give full transparency into cashier behaviour

Be integrated with video surveillance systems

Support ‘Flash’ physical inventory counting

Eliminate manual data entering

Supplier theft

Deliver not ordered items Deliver too much Deliver too little Prices are bigger than agreed Invoices do not match delivery Invoices do not match contract “Best before” dates do not match contract …

Supplier theft - Modern Retail EPR can:

Keep track of all the contract details: Items, quantities Delivery dates Prices, discounts Payment terms

Automate goods receiving

Register receiving documents as separate transactions

Compare invoices with the contracts details ‘on the fly’

Compare invoices with the receiving documents

Support regular reports about wrong supplier behaviour

What is a specialised ERP?

An ERP created exclusively for the given sector

or business vertical Very expensive

A lot of functionality

A modern general ERP + specialised modules to

run a specific business Usually good Value to Price Ration

Expands standard functionality: 85% → 98%

Specialised ERP on Navision

80% of retail companies using Navision also use LS Retail.

LS Retail is the most flexible solution on the market that

can be very fast adapted to the changing company needs.

According to customer surveys, using LS Retail as the

platform for their solutions, we can help retailers achieve

30% more ROI than with alternative platforms.

End-to-End Retail Solution

based on Microsoft Dynamics

LS Retail Coverage

1.900 customers

35.000 stores

77.000 POS

130 Countries

33 Languages

Summing up – What

Before - is a modern ERP going to bring value?

Now - WHICH TOOL TO CHOOSE?

Every one of our customers claim that with a

specialised Retail ERP they gained a better control

over their employees and suppliers.

Summing up – What in Detail

You will see if what cashiers sell is consistent with what

is in stock or with what they enter into the system.

You will control what data cashiers can or must enter.

You will see if goods deliveries are consistent with

supply contracts and invoices.

And people will know that they

can be easily checked at any time!

Summing up – Why and How

There aren’t many IT companies in Europe with

190+ employees, 90% of whom are dedicated for

Retail.

We deeply specialise and our customers love it!

The right knowledge: Facts about the company

In Retail IT since 1993 In Navision and LS Retail since 1999:

MICROSOFT – Gold Certified Partner (5 competencies)

LS Retail – Gold Certified Partner

120+ NAV customers

Implementations in LT, LV, EE, UK, RU, UA, CZ, PL, RO, SE

„New Vision are experts in the complex Retail IT systems. They can evaluate the problem’s impact on the business processes, assign the correct task priority or just simply do consulting via the phone. That’s the big advantage in comparison with the general helpdesk or call center companies.

Andrius Šemeškevičius„RIMI Baltic" IT director

Customer testimonials

Call to Action

Let’s talk

Free diagnostics and customer-tailored

presentations

Visit www.new-vision.com

Visit www.lsretail.com