Microsoft Dynamics Customer Solution Case Study

International Clothing Brand Sharpens CompetitiveEdge with Proactive Merchandizing Capabilities

“Microsoft Dynamics has provided valuable real-timevisibility which enables our sales managers to gaindaily visibility into the performance of each productcategory at each retail outlet.”-- Ms Jaslyn Koh, Assistant General Manager, Singapore Crocodile (1968) Pte Ltd

Crocodile is an international clothing brand that issynonymous with style, quality, comfort and value for money.Established in 1947, Crocodile is a Singapore-based success,with its apparels available extensively across major cities in Asia.

Following a successful re-branding exercise, Crocodile wantedto sharpen its competitive edge by investing in a scalable,flexible enterprise resource planning (ERP) system that willfully integrate its point-of-sale (POS), inventory and financialsystems, improve business efficiencies and enhancemanagement visibility. Inventory management and financialreporting also need to be streamlined.

With Microsoft Dynamics, Crocodile has gained in-depthinsights into customer buying patterns and become moreproactive in its merchandizing strategies. Besides simplifyinginventory management, Crocodile also benefits fromenhanced management visibility with timely financialreporting.

Microsoft DynamicsCustomer Solution Case Study

Solution OverviewCountry: SingaporeIndustry: Retail

Customer ProfileFounded in 1947, Crocodile is aleading men’s wear retailer in theAsia region.

Business SituationCrocodile needed better inventorymanagement to remain competitive.It also wanted to fully integrate itspoint-of-sale (POS), inventory andfinancial systems to improve efficiencyand visibility.

SolutionCrocodile switched from a highlycustomized package to MicrosoftDynamics™ NAV to ensure seamlessintegration between POS, inventory andfinancial, improve stock tracking andenable timely reporting.

BenefitsSeamless financial integrationProactive merchandizingSimplified inventory management10-fold increase in system performanceTimely management reporting

SituationA pioneer label for affordable qualitywear, Singapore-based Crocodile issynonymous with quality men’s wearsince 1947. Known for its reasonablypriced apparel, the company hasevolved into a lifestyle brandproviding total wardrobe solutionto the modern family. Its diversifiedportfolio, which includes women’swear, accessories, footwear,children’s wear and householdproducts, has attained an extensivefootprint across Asia.

To sustain its growth in the fast-changing fashion industry, Crocodileembarked on a re-branding exercisein 2004 to rejuvenate the brand.With a vision to be the leadingfashion lifestyle provider in Asia, thecompany invigorated its productand marketing strategy with arenewed focus on product design.

”Perpetuating our long-standingreputation for contemporarydesigns, our designers draw theirinspiration from internationalfashion shows and events toconceive our collection. In fact, dueto production lead times, we usuallywork one year ahead and arecurrently designing and planningour Spring and Summer 2009launch,” said Jaslyn Koh, AssistantGeneral Manager, SingaporeCrocodile (1968) Pte Ltd.

However, riding the tumultuouswaves of change in the cut-throatindustry requires more than creativedeftness. According to Jaslyn, in-depth knowledge of the customers’buying patterns, the ability to track

its inventory efficiently and timelymanagement visibility into businessoperations, are key success factorsfor a fashion brand’s survival.

A review of its previous systemrevealed much inefficiency causedby disparate point-of-sale, financialand inventory systems that were notfully integrated. Inventorytransaction postings were time-consuming, with 20 to 30 minutesrequired for one transaction. In theevent of system failure or poweroutage, precious data was often lost.Valuable IT resources were oftenbogged down to troubleshoot theunstable system. Delayed transactionpostings, which did not account forstocks in transition, also resulted inoutdated stock information. Month-end closings were tedious andfrustrating, with much time andeffort spent manually verifyinginventory figures against salesorders.

Recognizing the need for anintegrated front-end and back-endsystem, the Crocodile managementevaluated several marketingofferings in their search for a flexibleand scalable Enterprise ResourcePlanning (ERP) solution that is easilycustomizable to their uniquebusiness requirements.

Solution”We require an integrated POS,financial and inventory solution thatcan cater to the needs of our variedsales channel comprising ofwholesale, retail and consignment.It should deliver a minimum of 70to 80 percent of the capabilities we

“With Microsoft Dynamics,we have cut month-endclosing by more than 50percent from three to fourweeks to within two weeks.By reducing the amountof manual work, our staffnow spends more time onother financial aspects.”

Ms Jenny NgAccountantSingapore Crocodile (1968) Pte Ltd

need, with only minimalcustomization required. The abilityto track detailed stock attributesby color, size, fit etc. is alsoimportant,” explained Jaslyn.

According to Jaslyn, MicrosoftDynamics is a natural choice forCrocodile due to several reasons.“Microsoft Dynamics fully supportsCrocodile’s wholesale, retail andconsignment sales modes withminimum customization. This easesa lot of pain in the implementationprocess,” she said. The reputableMicrosoft brand, its standards-based technology and proven trackrecord, also give the Crocodilemanagement the assurance theyare looking for.

“To effectively support our businessgrowth, we do not want to be tieddown to any proprietarytechnology. Microsoft Dynamicsgives us a scalable platform thatwill grow with our business, whiledelivering seamless front- andback-end integration,” said Jaslyn.

Enlisting the expertise of IBIZConsulting Services Pte Ltd (IBIZ),a 2007 Microsoft Dynamics™President’s Club Member, Crocodileimplemented the Financial,Inventory and Cash ManagementModules of Microsoft Dynamics™NAV, together with Landsteiner LSRetail (LS Retail), an end-to-endretail solution built on the MicrosoftDynamics platform. IBIZ also value-added with its stock take solution.Other Microsoft product

implemented included Microsoft®

SQL Server® 2005.

“Due to our year-end closing, thenew system needed to be up andrunning in less than three months,instead of the usual four. We wantto commend the IBIZ consultantswho impressed us with theirdedication. In order to meet ourdeadline, they often worked intothe early hours of the morning,even during the year-end holidays.With their in-depth expertise, theywere able to solve the issues thatarose during the implementation,”commended Jaslyn. Theimplementation took three monthsand went live in January 2007.

BenefitsMicrosoft Dynamics allowsCrocodile to seamlessly integrateits POS, inventory and financial,systems. It also enables proactivemerchandizing, simplifies inventorymanagement and enhancesmanagement reporting. Itsreliability and performance alsodelivered a 10-fold increase insystem performance, which in turnenhanced staff productivity.

Seamless Financial IntegrationWith an integrated financial systemon Microsoft Dynamics, Crocodilestaff no longer needs to accessanother system to post itstransactions. This has reduced theamount of manual work andrelieved the accounts staff whowere previously working overtimeup to six days a week. Streamlined

“With Microsoft Dynamics,we have gainedheightened insights intoour customers buyingpatterns… Crocodile alsoexperienced enhancedcustomer service, as ourretail staff can nowconveniently check on thestock availability at otheroutlets through ourintegrated POS system ..”

Ms Jaslyn KohAssistant General ManagerSingapore Crocodile (1968) Pte Ltd Enlisting the expertise of R Systems,

formerly aka. IBIZCS, a 2007 Micro-soft Dynamics™ President’s Club Member, Crocodile implemented the Financial, Inventory and Cash Management Modules of Microsoft Dynamics™ NAV, together with Landsteiner LS Retail (LS Retail), an end-to-end retail solution built on the Microsoft Dynamics platform. R Systems also value-added with its stock take solution. Other Microsoft product

“Due to our year-end closing, the new system needed to be up and running in less than three months, instead of the usual four. We want to commend the R Systems consultants who impressed us with their dedica-tion. In order to meet our deadline, they often worked into the early hours of the morning, even during the year-end holidays. With their in-depth expertise, they were able to solve the issues that arose during the implementation,” commended Jaslyn. The implementation took three months and went live in January 2007.

financial processes also cut accountsreceivables cycles, enabling bettercash flow planning.

”With Microsoft Dynamics, we havecut month-end closing by more than50 percent from three to four weeksto within two weeks. By reducingthe amount of manual work, ourstaff now spends more time on otherfinancial aspects.” said Jenny, theaccountant.

Indeed, financial analysis is nowmade simpler. With the integrationbetween Microsoft Dynamicsinventory, financial and LS RetailPOS system, sales information is“pushed” to the back-end in real-time, once receipts are printed atthe Crocodile retail stores. Anyqueries on figures can be done easilyusing the system’s filtering and drill-down functionalities, whicheliminates the need to manuallysearch through physical files andmultiple systems.

Proactive MerchandizingAccording to Jaslyn, one of the keybenefits Crocodile has gained fromMicrosoft Dynamics, is the ability tomanage inventory and track detailedstock attributes. This is madepossible by the customized matrixsystem developed by the IBIZ team,which allows detailed inventorytracking by season, color, size, itemcategory and product range.

By implementing both LS Retail andMicrosoft Dynamics, Crocodileenjoys seamless POS integrationwith its back-end sales, marketingand inventory system. This in turnmakes it possible to track individualtransactions from the POS to the

General Ledger, enabling real-timevisibility into the sales figures fromany of its eight boutiques and 15consignment stores.

Jaslyn said, “Microsoft Dynamics hasprovided valuable real-time visibilitywhich enables our sales managersto gain daily visibility into theperformance of each productcategory at each retail outlet.”Instead of waiting for monthlyreports like before, Crocodile salesmanagers have been empoweredto make quicker and more informeddecisions regarding sales targets foreach outlet and salesperson.

The ability to track and capture salesinformation goes a long way inhelping Crocodile plan itsmerchandizing strategies for itsfuture collections. By knowing thestock movements across each retailoutlet, Crocodile is able toproactively stock its retail stores withspecific product ranges that caterto the profiles of the customersserved by each store. With fastaccess to advanced multi-dimensional analysis and drill-downfunctionalities, merchandizing andreplenishment is also a breeze forretail managers.

”Microsoft Dynamics has enabledour managers to make quickdecisions. This ranges fromprocurement, inventory to evenmarketing decisions on whichpromotions to run, in order to cleara certain stock type. It has made usmore proactive,” said Jaslyn.

She added, ”With MicrosoftDynamics, we have gainedheightened insights into our

”We want to commend theIBIZ consultants whoimpressed us with theirdedication. In order tomeet our deadline, theyoften worked into the earlyhours of the morning, evenduring the year-endholidays…”

Ms Jaslyn KohAssistant General ManagerSingapore Crocodile (1968) Pte Ltd

According to Jaslyn, one of the key benefits Crocodile has gained from Microsoft Dynamics, is the ability to manage inventory and track detailed stock attributes. This is made possible by the customized matrix system developed by the R Systems team, which allows detailed inventory tracking by season, color, size, item category and product range.

”We want to commend the R Systems consultants who impressed us with their dedication. In order to meet our deadline, they often worked into the early hours of the morning, even during the year-end holidays…”

customers’ buying patterns. Themore precise the information wecapture, the better we know ourcustomers. We have also enhancedour customer service, as our retailstaff can now conveniently checkon the stock availability at otheroutlets through our integrated POSsystem. Stock reservation servicescan now be offered as a value-added service. These enhancedcapabilities have helped to improvesales and customer satisfaction.”

Better insights into customerbehaviour have also helpedCrocodile to introduce new productranges that cater to the workingexecutives. For example, the latestCrocodile collection features new“slim fit” silhouettes, where fittedshirts are matched with neat slimtrousers that are cut straighter witha low waist.

Simplified InventoryManagementInventory planning andmanagement is also a breeze,thanks to the easy filteringcapabilities of Microsoft Dynamics.“The system is now able to “freeze”inventory figures for a certainmonth of the year, a feature notsupported on the previous system,which used to change the inventoryfigures whenever new data wereentered. Our staff now gains easyaccess to accurate inventory figuresfor any point in time,” said Jenny.

Microsoft Dynamics is also flexiblein allowing for delayed posting and

the setting of automated postingat a later date.

The enhanced security controlswithin Microsoft Dynamics alsoprovides better control, as differentaccess rights can be set for differentemployee functions. “This helps toreduce erroneous datamanipulation, enhance traceabilityand increase the sense ofaccountability amongst the staff,”said Jaslyn.

10-Fold Increase in SystemPerformanceAccording to Mark Magesen, theSystem Officer, who is one of themembers of the new system projectteam, Microsoft Dynamics hasindeed delivered on its promise ofbeing reliable and fast. Posting ofeach line item, which used to take20 to 30 minutes, now takes onlytwo to three minutes, delivering a10-fold increase in systemperformance.

In addition, the seamless integrationbetween Microsoft Dynamics andMicrosoft Office, also allows for easyretrieval of reports in html. “WithMicrosoft Dynamics, we are able tosee and print out exactly what wepreviewed on the screen,” saidMark.

The user-friendly and familiarinterface of Microsoft Dynamicsmakes it so simple to use the system.According to Mark, the users have“suffered for too long” under theprevious system and are enthusiastic

"Having a scalable andflexible system likeMicrosoft Dynamics buildsa strong foundation andenables us to be morefocused on our business,rather than on teethingoperational issues. This isa key asset to us as wecontinue to extend ourfootprint across the globe."

Ms Jaslyn KohAssistant General ManagerSingapore Crocodile (1968) Pte Ltd

About Microsoft Dynamics™Microsoft Dynamics™ is a line of financial,customer relationship and supply chainmanagement solutions that help businesseswork more effectively. Delivered through anetwork of channel partners providingspecialised services, these integrated,adaptable business management solutionswork like and with familiar Microsoftsoftware to streamline processes across anentire business.

For More InformationFor more information on MicrosoftDynamics, visit Microsoftwww.microsoft.com/asia/dynamicsor email: [email protected]

For more informationabout IBIZ Consulting Services Pte Ltd,call 65 6423 9258, email: [email protected] visit www.ibizcs.com

For more informationabout the Singapore Crocodile (1968) Pte Ltd,call 65 6741 3822 or visitwww.crocodilehouse.com

©2007 Microsoft Corporation. All rights reserved. Thiscollateral is for informational purpose only. Microsoftmakes no warranties, express or implied, in this summary.Microsoft Dynamics is a trademark of Microsoft Corporationin the United States and/or other countries. All Microsoftproducts listed in this collateral are either registeredtrademarks of Microsoft Corporation in the United Statesand/or other countries. The names of actual companiesand products mentioned herein may be the trademarks oftheir respective owners.

Document published 04/08

about learning a new system thatwill help to ease their work loadthrough enhanced capabilities andstreamlined processes.

Timely Management ReportingPulling together the informationfor ad-hoc management reportingused to be a big challenge, as theaccounts staff had to approach thelean IT team for support in creatingnew fields and column headers.Depending on the bandwidth andwork load of the IT team, this oftentook up to two days.

“With the easy-to-use filteringfunction within Microsoft Dynamics,our accounts staff can “helpthemselves” by filtering down tothe data required. With the seamlessintegration between MicrosoftDynamics and Microsoft® Office,they can also easily copy and pastethis information onto Microsoft®

Office Excel for furthermanipulation,” said Jenny.

The drill-down functionalities ofMicrosoft Dynamics also providesthe Crocodile management withpowerful and informative insightsinto financial data. “For example, ifan executive wants to find out whatmakes up a certain sales figure in

a financial report he is reviewing,he just needs to click on that fieldto drill-down to the details. Byhelping themselves with theinformation, the Crocodilemanagement is now empoweredto make quicker decisions,”explained Jenny.

Extending Business SuccessAcross the Globe”Over the years, our business hasgrown tremendously as we continueto focus our efforts on design,marketing and merchandizing.Having a scalable and flexiblesystem like Microsoft Dynamicsbuilds a strong foundation andenables us to be more focused onour business, rather than onteething operational issues. This isa key asset to us as we continue toextend our footprint across theglobe,” said Jaslyn.

Confident in the MicrosoftDynamics solution they have put inplace, plans are underway tointegrate mobile hand held systemswith Microsoft Dynamics.

Software and ServicesMicrosoft Dynamics– Microsoft Dynamics NAV

Microsoft Windows Server System– Microsoft SQL Server 2005

Enterprise Edition

Microsoft Office- Microsoft Office Small Business

Edition

HardwareIBM server

PartnerIBIZ Consulting Services Pte Ltd

[email protected] Systems

R Systems

R Systems server

www.rsystems.com/apac