A new ambitious player appeared on the retail market in 2012- the international chain of KARI stores. The retailer has staked on mass-market, offering its customers a diverse range of fashionable shoes and accessories of its own production at affordable prices. The scale and timing of the launch of the chain announced by the KARI management was striking. The first KARI stores opened their doors in May 2012 in Poland. At the same time the company announced the creation of 150 outlets in Russia and about 100 more stores in Ukraine and Kazakhstan. And all this KARI planned to realize by the end of 2012!
The strategy of aggressive expansion of KARI in several regions at once required in a very short time to build the key business processes of the network: sales and cash transactions, purchase accounting, distribution of goods, pricing, settlements with partners. The network management chose the powerful Microsoft Dynamics AX for Retail platform as the main ERP solution. The functionality of the system fully meets the key requirements of the retail market and supports the active growth of the trading company. The retailer took only 6 months to prepare and launch the system in commercial operation. Implementation had to be carried out in parallel with the opening of new retail outlets, which imposed certain criteria on the choice of partner.
KARI operates in several countries, so we had to choose the solution that would be able to operate in all possible countries of the chain's presence
The advantages include:
possibility to process large amounts of data,
localization of accounting and tax accounting (at least for Russia and the EU),
creation of a single database,
ability to launch quickly on standard functionality and flexible setup solutions in the future,
partner company has experience in implementing retail fashion retail stores.
As a result of the tender, the project was entrusted to the specialists of the Odyssey consulting company, which has unique industry expertise and solutions in the retail industry. We started the project in January 2012 and within two months we launched the main assortment management functionality in the system. Already in March all of KARI's purchasing activities were carried out using the Odyssey Retail solution based on Microsoft Dynamics AX for Retail. Financial statements for the first quarter of 2012 were also generated in the system. By the time of the first KARI stores opening, we had implemented the blocks of sales and cash register operations. Then the project team consistently ensured the solution of distribution logistics, accounting and reporting of the company's trading activities. Currently, all retail outlets in Russia, Ukraine, Kazakhstan and Poland, as well as the purchasing company in Hong Kong, operate in a single information environment Microsoft Dynamics AX for Retail. The system allows to obtain, in real time, all the necessary data on the operation of the network
The key demand of any fashion segment retailer is operational management of the assortment and supply of the most popular goods items for the current and subsequent seasons. KARI retail chain actively uses Odyssey Retail solution based on Microsoft Dynamics AX for Retail to plan the next collection and timely supplies to the stores. In particular, thanks to the solution, the retailer can accurately calculate the volume of each store order by size range of goods (the number of pairs of shoes in the required size) and other consumer characteristics. So, there is always a demanded assortment on the shelves of KARI stores.
Odyssey Retail solution provides a full cycle of goods movement and relationship with suppliers of KARI chain. The solution includes the module of import purchases management which allows to keep record of orders, contracts, suppliers invoices as well as local customs costs. Odyssey Retail tracks each route of goods delivery to a specific store. The system supports batch allocation throughout the supply chain on the basis of the data of the current stock in the warehouses and KARI stores. Odyssey Retail extended store management capabilities provide an operational receipt of incoming goods, accounting and processing of defective products, control of set prices, printing of price lists and labels, returns, moving orders between stores. The solution supports full and partial inventory by nomenclature and product placement zones. KARI implements a flexible pricing policy in four countries simultaneously with Odyssey Retail on Microsoft Dynamics AX for Retail. With the solution tools, the retailer can set both uniform prices per country and different prices at the level of each region and store of the chain. The system also allows for price changes for individual stores, which is especially important during promotions and seasonal sales.
Sales are recorded in the POS system integrated with Microsoft Dynamics AX for Retail. At the end of the day, the cash register transaction data are fed into the ERP system, which generates consolidated reports on sales and returns for all retail outlets in the network. Thanks to OdysseyRetail on Microsoft Dynamics AX for Retail, KARI implements a flexible pricing policy in four countries simultaneously. Using the solution's tools, the retailer can set both uniform prices per country and different prices at the level of each region and store of the chain. The system also allows for price changes for individual stores, which is especially important during promotions and seasonal sales. Sales are recorded in the POS system integrated with Microsoft Dynamics AX for Retail. At the end of the day, the cash register transaction data are fed into the ERP system which generates consolidated reports on sales and returns for all retail outlets in the chain. The automation of the financial loop allows us to centrally manage cash flows in all divisions of the company and at the store level, keep full accounting of fixed and intangible assets. The Odyssey solution also generates management and accounting reports for each of the countries where the chain is present, says KARI. Along with the prompt launch of the ERP-system, the retailer felt the need to automate its distribution centers.
The Odyssey team and the WMS class system offered by the partner were also entrusted with solving warehouse logistics tasks in the new project. The system required almost no revisions and perfectly fit in the single information environment of the retailer. In just 7 weeks Odyssey experts provided KARI warehouse complex with all the necessary speed of incoming and outgoing goods flow management. Now Odyssey WMS solution is in full control of the main distribution center of the network and manages the reception, storage and shipment of goods in real time.
The KARI warehouse uses pallet cross-docking technology and floor storage. The number of active product items exceeds 5,000 and deliveries are made daily. The main product range in the distribution center is a box that contains one full size line of shoes or a set of accessories.
Consignments of goods are distributed throughout the network according to store requests. The intensity of cross-docking is quite high - several hundred containers are shipped to KARI stores every month. The results of each stocking operation are reflected in Odyssey WMS solution and due to integration facilities the data on stock levels and shipments per box are updated in ERP. Information about the status of order execution is given to the interested users.
Thus, the complex network automation project covers the whole logistics chain of KARI - from order planning and distribution through network stores to the sale of goods to the end customer. The KARI management was able to implement ambitious plans for network growth, as well as create a solid information foundation for expansion and development in the coming years with the standard functionality of Microsoft Dynamics AX for Retail and Odyssey Retail solutions. More than 370 stores have already been opened under KARI brand in Russia, Ukraine, Kazakhstan and Poland and this is just the beginning. By the end of 2013 the company intends to open 300 more retail outlets and by 2015 the number will increase to 1000.
