A Pioneer in Middle East’s Beauty Industry embraces ebizframe ERP

Written by admin|Mar 02,2016

BUSINESS BACKGROUND

Founded in 1975, our client offers total solution to Salons and Beauty Parlors, along with the supply of Personal care products. They are pioneers in the Beauty Industry in the Middle East.

The group has 27 haute couture showrooms in fourteen countries of the Middle East region, indicative of its leadership position as the holistic supplier of products for Salons and Beauty Clinics.

The company’s own outlets and offices are spread all over the Middle East including Dubai, Abu Dhabi, Al Ain, Fujairah and Ras Al Khaimah (UAE); Jeddah, Riyadh, Al Khaobar and Abha (Saudi Arabia); Qatar, Kuwait, Bahrain, Oman, Yemen, Syria, Egypt, Iran, Libya, Jordan, Iraq and Lebanon.

PRE-ERP CHALLENGES

Like any fast growing organization, accounting was decentralized with different legal and ownership structures based on geography and laws of that place. The difficulty they faced as they grew was that each branch had operational freedom within the Policy and Procedural framework of the Group. Monthly MIS was the only means to check controls built into the operations.

To highlight a few issues that the group was facing in running the business were –

1. The Group had an independent server or computer in each branch in each country with a LAN connection. The Branch data was copied to the HO Server every month after the monthly closing of Branch Accounts. Two dedicated employees were fully involved in transferring data from the Branch to HO and vice versa.
2. Since each branch worked independently, consolidation of reports was more or less manual that took huge time and was a delayed post-facto analysis.
3. Data entry for inter-branch transactions was repeated in each branch. With errors creeping in, thus, reconciliation was a big painful exercise.
4. Control and reduction of “dead stock” was not as effective as could be as stock availability at various branches was not visible to managers.

SOLUTION CHOICE

The Management Team evaluated various ERPs available in the market. It chose ebizframe ERP because of its state-of-the-art technology, good track record, low entry and implementation cost, a clear implementation methodology and a transparent costing system. One more point that appealed to our client was our readiness to help them adopt best business practices while keeping options of customization based on their typical business requirements.

Implementation of ebizframe ERP was completed in 7 months with 3 branches going live. In the next few months, ebizframe ERP was rolled-out in 4 more branches within UAE and 9 branches in Kuwait, Qatar, Oman, Bahrain, Yemen and Saudi Arabia.

ebizframe was adopted with some customization and re-engineering of their business processes that were necessary as the organization moved from a decentralized system to an online centralized system in a controlled operations environment.

ESS has provided a complete comprehensive Retail Solution that includes Point of Sales (POS) with tight integration of back-end operations of Purchase, Sales, Inventory, Finance, HR & Payroll and Fixed Asset. ebizframe ERP allows flexible Sales and Distribution policies, market promotion schemes in retail. It has made life easy with automated internal methodology for inter-branch transaction.

BENEFITS DERIVED POST IMPLEMENTATION

Major benefits derived by the company are –

  1. Better monitoring of stock movement and correct valuation of inventory.
  2. Lower turn-around time of Sales Orders from branches.
  3. Better Quality Control (Q.C.) and vendor monitoring with online data availability.
  4. Finance Module with powerful features like consolidation, multi-currency options, inter-branch transactions gives it a better control and flexibility for Financial Reporting.
  5. Critical MIS Reports are available at the click-of-a-button, resulting in better monitoring of operations.
  6. Centralized Inventory control, transparent view of availability, easy inter-location transfers has reduced “dead stocks” to minimal level.
  7. Duplication in data entries has been reduced dramatically. For example all sales to branches automatically become a purchase in the respective branch.
  8. Pilferage reduced to near zero with inbuilt controls in display and sale invoice creation through barcode.
  9. Tight central control on marketing and pricing policies and schemes has reduced leakages due to ad-hoc discounts and stray local schemes.
  10. On-line/Off-line POS allows uninterrupted billing and client satisfaction.
    Automatic data interface keeps information updated across all locations at HO.