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Microsoft Dynamics NAV weaves the perfect retail transformation for a rapidly growing local textile conglomerate

August 20, 2011

FACT

Customer

Kamdar Group (M) Berhad, Kuala Lumpur, Malaysia.

Business Solution

Microsoft Dynamics NAV® (formerly Microsoft Navision)

Benefits

  1. SPEED:
    Near real-time updates made possible through integrated, remote access systems
  2. EFFICIENCY:
    Integration renders repeat data entry obsolete, while helping to forecast stock requirements
  3. SATISFACTION:
    Goods in store can be better matched to customers' needs
  4. ACCURACY:
    Accurate drill down information for inventory control, purchasing, sales order processing, demand planning and more
  5. PROFITABILITY:
    Better managed inventory turnover from reduced stock holding improves cash flow and profitability

The Client

Kamdar, a household name for textile and fabric, is owned and managed by Kamdar Group (M) Berhad (KGMB). KGMB's main business is as an importer, exporter, retailer, and wholesaler of textile and textile - based products. Operating out of its headquarters in Kuala Lumpur, KGMB manages a commendable chain of 24 departmental stores throughout Malaysia; offering not only textiles, but also ready-to-wear clothes in various styles and Fashions.

The Situation

From its humble origins in 1950, KGMB has since grown dramatically and is now listed on Bursa Malaysia. It is said that success is often the envy of many. But for one Mr. Jayesh Kamdar, the Chief Executive of KGMB, it is also a prestige that is hard to maintain. With 24 stores throughout the nation and a whopping headcount of 1,300, the efforts and decision making process of KGMB's management was severely impeded by disparate and antiquated systems.

The Challenge

Mr. Jayesh is well aware that the difficulty to both manage and grow a business increases exponentially as the business increases in size. To him, one particular business headache involved synchronizing business operations. "We had to open up different applications, drag, recast information and ended up wasting a lot of time. The systems couldn't tally and I wouldn't know what the stock balance was," Jayesh recalls.

The Need

KGMB needed a fully integrated business management solution that could support the group's rapidly expanding business. Thus, according to Jayesh, would make the lives of Kamdar's staff easier while increasing overall efficiency. For Jayesh, this new business support system had to (be):

  • process information in real time due to the fast paced nature of the retail business.
  • consolidate and facilitate transfer of information from all quarters into one seamless, easy to access database.
  • facilitate KGMB management in making effective critical business decisions, forecasting and budgeting.
  • manage stocks effectively through inventory control, purchasing and sales order processing with demand planning.
  • remotely accessible, to address the geographic distribution of stores across the nation.

The Solution

The group started evaluating prospective systems from SAP, Oracle and Microsoft over a two-year period from 2004, and had come to agree that Microsoft Dynamics NAV was the ideal solution of choice. In 2006, KGMB appointed Synergistic Innovations Sdn Bhd as their implementation partner. Additional plans were made to include the Microsoft Dynamics NAV business intelligence module in the future. The solution was implemented in phases and at the same time, integrated with a front end POS system that was deployed at all Kamdar stores. The seamless, highly automated and accurate solution allowed KGMB greater flexibility and degree of control over the management of their stores.

The Improvements

The implementation of the Microsoft Dynamics NAV solution saw a tremendous change on several fronts:

  • Better inventory management:
    Process automation and item tracking made it possible for KGMB to improve on inventory accuracy and goods supply to customer demand matching. This reduces the amount of stock held, improving financial liquidity and cash flow.
  • Enhanced decision-making:
    Microsoft Dynamics NAV allows users to access desired information directly, allowing for greater business insight and trend spotting. Because of detailed and discrete information tracking, decisions are no longer made subjectively, leading to more constructive discussions and improved business decisions.
  • Time-saving data collation and access:
    Thanks to system integration , business information is more effectively collated and easily accessed. In addition, there is no longer any need for repeat data entry.
  • Resource optimization:
    Process automation frees up staff for shop floor sales as opposed to back end work. Efficiency and productivity gains directly translate to a reduction in headcount by 15 to 20 percent. Not only is quality of life (for Kamdar's staff) improved, but more is achieved with better results.
  • Business transformation:
    With major improvements to forecasting, budgeting and planning, NAV gives KGMB a clearer view of what works, what doesn't and what needs to be done . "It's all about getting the right information to make the right decisions" shares Jayesh.

"The savings of RM20 million over the next 2 years, more than justified Kamdar's investment in Microsoft Dynamics NAV. The ROI is certainly impressive by any measure." Yap Yen Sam Managing Director

"In Microsoft Dynamics NAV, we found a solution that is helping Kamdar transform itself to stay competitive and gain a strategic advantage in a tough environment where new rivals such as foreign-owned hypermarkets are eating into the market share of local players." Jayesh Kamdar Chief Executive

A Successful Partnership

Through significant cost reductions and improved cash flow, KGMB noted an impressive savings of up to RM20 million over a 2 year period. Jayesh acknowledges that the deployment of Microsoft Dynamics NAV marked the beginning of the company's transformation of its business operations. "I am very, very satisfied with it . I think it has helped resolve a lot of issues that were limiting us under the previous systems," he says. He adds that given the user-friendliness of Microsoft Dynamics NAV, the process of training the users was much smoother and less onerous.

About Microsoft Dynamics NAV

The Microsoft Dynamics NAV system, an award-winning business management solution for small and midsize businesses, runs on Windows Server 2003.

Microsoft Dynamics NAV is modular, scalable, reliable and flexible. Any or all of the modules may be combined, integrated and customized to create a perfectly tailored retail management solution.

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