ebizframe ERP Automates Operations of Middle East’s Leading Garment Retailer & Wholesaler

Written by admin|Mar 02,2016

CASE STUDY

BUSINESS BACKGROUND

Our client, founded in 2004 with headquarters in UAE, is an international retailer of the finest fabrics and offers a choice of international fashion labels and in-house brands for men’s formals, semi-formals, smart casuals and accessories. They have more than 30 stores across Saudi Arabia, Qatar, Iran, Oman, Bahrain and Kuwait.

PRE-ERP SCENARIO & CHALLENGES FACED

The client’s operational structure was a decentralized one, where branches in each country or location were operating with different legal structures. Apart from the Accounts Department all other departments like Inventory, Receipt & Dispatches, etc. were being operated manually using a register or Excel. The client wanted to implement a controlled business environment & also plan for future growth. Some of the critical challenges being faced by the client were:

  1. Analysis or consolidation of stock or accounts figures was not available as the business was growing faster than the in-house systems.
  2. The inventory was managed manually based on trust. Hence, this was becoming a hurdle for future growth.
  3. A key factor for success in the fashion business is ensuring inventory liquidation within 90 days. This was however impossible as stock at one branch was not visible to other branches.
  4. The client had an independent server or computer system in each branch in every country with a LAN connection. No data transfer was possible. Only Accounts data was stored on these systems whereas all other data was maintained manually in a register or Excel. Consequently, Reports Consolidation was very difficult and required a lot of manual effort.

SOLUTION CHOICE

The Management wanted a proven state-of-the-art technology that would integrate all their critical functions and also provide the ability to plan, monitor and manage all their activities and resources. The client also wanted a ready-to-use Retail Solution with a strong back-end ERP that could be customized to its proposed strict audit controls and management processes. After evaluation of several ERP Solutions, the client 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.

After a full-fledged GAP Analysis and SRS, ebizframe ERP implementation was initiated. After some customization and re-engineering of their business processes, POS, Purchase, Sales Inventory, HR & Payroll, Fixed Assets & Finance Modules went live for 4 stores within 15 months and another 4 stores in the subsequent months. The ERP System works for both Retail and Wholesale Trading. The organization has moved completely from a decentralized, semi-computerized operation to an online centralized system working in a controlled business environment. The Inventory and related activities are bar-code enabled which captures all the data related to designs, pricing, etc.

Retail & Trading supports various pricing and marketing schemes. e.g. A wholesale customer can simply scan his choices through a wireless handheld scanner and when he reaches the counter his invoice is ready without any waiting. A Customer Loyalty Program has also been designed and implemented.

The process of Inventory Audit & Reconciliation is fully automated now. The functionality of uploading the stock from PDAs to ERP and reworking the expected stock on any given date prior to the system date opened up new possibilities where the daily routine transactions can continue and stock taking can be performed at ease.

BENEFITS DERIVED

The client has derived multiple benefits from the implementation of ebizframe ERP. Some of these benefits are:

  1. Smoother Retail Operations with common business practices and schemes being administered centrally.
  2. Wholesale customers feel more satisfied as their wait time has reduced to nearly zero.
  3. Better monitoring of inventory movement and valuation is now possible. The primary objective of reducing inventory ageing has also been achieved successfully with stock visibility across all stores and countries. Due to system-generated Inventory Stock Ageing Report, “dead stocks” have become minimal.
  4. Auto Bank Reconciliation facility ensures that vouchers get generated automatically upon selecting the cheque number against actual deposit or clearance from the bank thereby helping the Accounts Department in a big way.
  5. ebizframe ERP ensures better Quality Control and improved Customer Relationship Management because all the data is available online along with a Customer Loyalty Program.
  6. The Finance Module offers many powerful features like consolidation, multi-currency options, etc. thereby giving better control and flexibility over Financial Reporting.
  7. Many MIS Reports are now available at the click of a button. This has resulted in better monitoring and management of operations.