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Digital Shoppy : Digital Integration
With the growth in the number of stores, Digital Shoppy was facing the pressure of managing each store independently without an integrated ERP. Integrating ERP with POS was the only solution available
Stuti Das
Monday, November 10, 2008
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One of Indias fast growing consumer electronics, home appliances, computers and communication devices retailer, Digital Shoppy a part of the Pratyankara Electronics and has stores spread across 33 locations.

Like any other retail chain, Digital Shoppy was also in an expansion mode but with the growth in the number of stores came the added pressure of managing each store independently without an integrated ERP. We were earlier using Tally that could not store and update data which was a problem as being in retail business, we had to be sure which products were in demand and which were not. Database management for each store and head office were an issue, says NV Ramakrishna, IT Manager Digital Shoppy. Data replication and consolidation in an environment where stores were geographically spread across diverse locations was a major headache.

The parent company was on the lookout for a solution that would enable them to handle more locations with minimum investment. The immediate requirement was to integrate the POS billing with the back-end ERP. Apart from Dynamic Vertical Solutions, other vendors like SAP also made presentations but the major problem area with most of these solutions was that a majority of retail solutions required Internet connection all the time, and considering that some of Digital Shoppys stores were small, it would have been extremely difficult to provide Internet connection.

We analyzed many ERPs in the market, keeping in mind the cost estimates for implementation and customization, and settled with LS Retail, finding it appropriate to our industry. LS Retail has made it easier to synchronize data between Head Office and stores, through the implementation of Replication Scheduler and Data Director.

Solution Deployed
The Digital Shoppy set-up was complex as it ranged from a single store with one POS to a complex, multi-store environment and therefore they needed LS Retail NAV to integrate with overall business operation.

LS Retail NAV is built on Microsoft Dynamics NAV, therefore, the POS, back office and head office all use the same application. This makes it possible to track individual transactions from the POS to the general ledger, which maximizes business value and efficiency for Digital Shoppy stores.

Some of the obvious benefits post deployment has been cost reduction leading to savings. But the most significant benefit has been to the purchase department since considering that the value of our inventory is quite high, we needed to know which of the items are moving off the shelf leading to increase in product performance, says Ramakrishna.

He adds thet the company wanted to keep our business processes simple and well defined and wanted to utilize the software in an effective manner. Therefore, customizations were minimized at all levels. Moreover best practices of retail business with respect to application of software were implemented, the solution also enables automatic reporting to all top management thereby enabling them to make informed decisions and useful for CRM and analysis purposes.

Moreover all the required functionalities like discounts, customer price groups, item price groups, and the like, useful for the retail industry are available in LS retail. The solution can also do data consolidation with replication technology in the central server, which implies that all transactions at the store can be replicated at the head office. The price of individual items and other offers and discounts can be controlled centrally so that any requisite changes can be made on the central server, which is then communicated to all the stores.

Stuti Das
stutid@cybermedia.co.in

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