Billund Airport is the second-largest airport in Denmark. To drive an efficient, cost-effective operation, the airport wanted to tie together its financial management and retail management systems. To do so, it implemented Microsoft Dynamics NAV and extended the solution with LS Retail NAV. Since going live, the airport has significantly improved business insight, increased shopping revenue by 10 percent, and found it’s the Microsoft Dynamics RoleTailored interface to help in delivering a rapid payback.Business Needs
Billund Airport is the second-largest airport in Denmark, with 800 employees and serving more than 2.5 million travelers each year. Most flights from Billund Airport go to destinations within Europe, the Middle East, and North Africa.
In light of the economic downturn and dramatic changes in the airline industry, Billund Airport has maintained a strong focus on running an efficient, cost-effective operation, including the airport’s retail business. Jan Hessellund, Retail Manager for Billund Airport, explains, “Whereas, in the past, we would earn our revenue largely from the number of flights and passengers we could attract to our airport, we now earn a large part of our revenue from retail, parking, and cargo. Of those three categories, retail, which includes our food and beverage services as well as shops, has been extremely critical.”
|In our shopping operation, the payback period for Microsoft Dynamics NAV with the RoleTailored interface and LS Retail was less than one year. The solution fits very closely to people’s functions, which makes our work extremely efficient.|
Retail Manager, Billund Airport
To achieve better control of its retail costs, Billund Airport made the strategic decision in 2008 to change its shop operations partner. The airport’s new shops partner used an SAP enterprise resource planning (ERP) system for financial management. To connect to this system and share key sales information, Billund Airport understood it would need to switch from its basic accounting solution, Limes, to a more sophisticated financial management package.
At the same time, the switch to a new financial management solution opened up the opportunity for the Billund Airport to switch from its retail management system, Oscar, to a more richly featured and efficient, integrated solution. Says Hessellund, “Our financial and retail management systems weren’t integrated, so we lacked comprehensive insight into our sales. We also didn’t have a way to correlate individual passengers and flights to the types of purchases they made, a capability that would enable us to better stock our shelves to drive revenue.” Solution
Following the suggestion of its shopping partner and after reviewing a number of possible solutions, Billund Airport decided to implement\u0026nbsp;Microsoft Dynamics NAV, a full-featured ERP system with wide adoption in Europe and across the globe, as its new financial management solution. To perform the efficient deployment of the solution, Billund Airport engaged its local Microsoft partner,Logica. Says Hessellund, “Not only would Microsoft Dynamics NAV ease integration with our shopping partner’s ERP system, but it was also already well known to many of our accounting team members and was a well-proven solution in Denmark, making it a great fit for our business.”
In addition, Billund Airport found the prospect of extending Microsoft Dynamics NAV with the fully integrated retail management solution\u0026nbsp;LS Retail NAV particularly appealing. Says Hessellund, “With Microsoft Dynamics NAV extended with retail functionality, we could have a single solution that met all our needs, both from a financial management and retail management perspective.”
Currently, eight employees in the airport’s financial team work with Microsoft Dynamics NAV every day. These employees use the solution for its general ledger, accounts payable, and accounts receivable functionality. For them, the Microsoft Dynamics RoleTailored user interface is critical. As Hessellund explains, “We appreciate that the RoleTailored interface removes all unnecessary information and functions and lets employees focus on the tasks and data they really need to work effectively.” In addition, in an upcoming project, Billund Airport plans to configure Microsoft Dynamics NAV to provide an automated invoicing workflow between Microsoft Dynamics NAV and the shopping partner’s SAP system.
Airport employees also make extensive use of the integrated Microsoft Dynamics NAV and retail solution and business infrastructure both in the back office and at the point of sale. Airport workers already use the point-of-sale solution for Microsoft Dynamics NAV in the airport’s shopping outlets and are beginning to use it for the airport’s food and beverage services. A customization to the solution also enables retail workers to scan a customer’s ticket and associate it to a flight to facilitate better planning of retail offerings in response to actual demand.
“We have dramatically improved our insight into the categories and individual products that we sell to each flight and passenger, and now we can optimize our storefront accordingly,” says Hessellund. “What’s more, when we know we’re going to have a large number of international flights in the next few days, we can optimize our shelves to put popular duty-free items, such as spirits and tobacco, front and center.”Benefits
With Microsoft Dynamics NAV implemented and taking advantage of the RoleTailored interface, Billund Airport has improved business insight, achieved a less than one-year payback in its shopping operation alone, and has seen an increase in shopping revenue of 10 percent since going live with the solution in 2008.
Improve Business Insight
With its new ERP and retail management system tying together all financial and retail information with passengers and flights, the Billund Airport enjoys a comprehensive view and ability to take control of the retail business. Says Hessellund, “With Microsoft Dynamics NAV, we have all our information in a single database and can quickly view it and analyze it further in Microsoft Excel. We can see exactly where we are profitable and where we need to change our approach so that we can sell the right products to the right flights and passengers and increase our revenue.”
Improve Shopping Revenue 10 Percent
Drawing on its comprehensive business database within the ERP system, the Billund Airport has succeeded in improving its revenue by optimizing its shopping operation and the products available to travelers. Says Hessellund, “In recent years, many more travelers have come through Billund airport, increasing our absolute retail results. However, if you compare retail revenues for the same numbers of flights and passengers today to what they were three years ago, it becomes clear that we achieved a revenue increase of 10 percent by using Microsoft Dynamics NAV.”
Rapid Payback by Using theCapabilities of theRoleTailoredInterface
By increasing retail sales 10 percent and making employees more productive with the solution’s RoleTailored interface, Billund Airport has generated a markedly rapid return-on-investment. Says Hessellund, “In our shopping operation, the payback period for Microsoft Dynamics NAV with the RoleTailored interface was less than one year. The solution fits very closely to people’s functions, which makes our work extremely efficient.”
The RoleTailored interface plays a crucial role in Billund Airport’s successful ERP experience. “Microsoft Dynamics NAV with the RoleTailored interface makes a noticeable difference in our lives,” says Hessellund. “The solution presents so many opportunities to work effectively. Employees can use graphics and data displayed in the RoleTailored interface to quickly review key facts and decide if they need to dive deeper. The relevant visual overview, together with easy individual adjustment depending on an employee’s requirements, helps us work smarter and with greater impact.”
The RoleTailored interface integrates with Microsoft Outlook, so employees can remain within the ERP system to create or view email messages, meetings, and tasks without distraction. An interactive, responsive search engine helps extend individual roles with additional information. Says Hessellund, “The search function in the RoleTailored interface within Microsoft Dynamics NAV is very powerful and saves us lots of time.”
You can read more about LS Retail that Billund Airport chose in theMicrosoft Dynamics Marketplace.