4-page Case Study - Posted 12/7/2010
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Home Shopping Network Boosts Sales, Shortens Order to Delivery Cycle
Reduces Delivery Time by 75 PercentSituation
Based in Mumbai, TVC Sky Shop is a pioneer of sky shopping (also known as Electronic Retailing and Direct Response Television (DRTV) in India. It commenced operations in May 2000 and today it markets and home delivers over 200 world-class innovative products to over 5 million Indian consumers annually at affordable prices. Its robust distribution network consists of more than 450 TVC Distribution Partners (DP) spread across the breadth and length of the country.
The state-of-the art Contact Center, media, creative design, editing, distribution, accounts and finance and IT setup of 275 employees make TVC a completely integrated organization. It posted the revenue of U.S.$18.6 million (INR 86crore) in financial year 2009-10.
TVC was using 3 key applications, a legacy, custom developed customer relationship management (CRM) solution; Tally, an accounting package, and a bespoke solution for Delivery Partners (DP) operations. Lack of integration between these 3 applications led to several issues such as account reconciliation, debit notes, credit notes etc. Thus manual involvements were necessary, making every process time-intensive.
At the same time, TVC relied on a solitary IBM server for database as well as for hosting application. Data was batch uploaded twice a day for distribution partners and back office operations on the live server maintained at a data center. The need for high speed bandwidth; in addition, to the cost made this an unviable proposition in the long run. Especially, as TVC has obtained 24 hours home shopping broadcasting license and plans to launch its own 24-hours home shopping channel showcasing over 20,000 innovative and lifestyle products.
||Dynamics AX accurately redirects orders in real time to delivery partners. Faster, transparent processes have reduced delivery time to 6 hours (from 24 hours) in metros and 12-24 hours (down from 2-3 days) in non-metro cities.
TVC Sky Shop Ltd.
With this channel coming into play in near future, the company needed to revamp its operations building in greater transparency, automation, and scalability. This would support the increased demand created by the 24-hour channel and would also serve the fully integrated e-commerce web site, customer loyalty program and mail-order catalogue.
Besides, TVC wanted to check the return on investment (ROI) from its advertising campaigns such as Zee, Sahara, Jetix, Sony et.c and print advertisements such as Times group. This would enable the company to invest in the ones that generate higher business.
To meet the demand generated by a 24-hour channel and the e-commerce web site, an efficient call center, an end-to-end ERP solution was needed that could make a big impact on the business within the budget.
TVC strongly felt the need for a flexible, vertically focused business solution to integrate all its distribution partners, franchisees and unify customer data. It initially considered SAP and some ERP solutions developed by private vendors. But after detailed analysis, the team concluded that the cost and time spent would not be justifiable. With growing recognition of the complexity and cost to customize the administrative ERP solutions, TVC shortlisted Microsoft Dynamics AX. Nitin Patki, VP - Operations, TVC Sky Shop Ltd explains, “Microsoft being an accepted platform, data portability is seen as an easy factor. Additionally, customization flexibility, and integration with other Microsoft products is considered as a clear advantage.”
It partnered with Microsoft Gold Certified Partner, Godrej Infotech Ltd. to implement Microsoft Dynamics AX 2009. Implementation started in January 2009 and the solution went live in January 2010. It was deployed at three locations in Mumbai: the corporate office, call center and the warehouse. 15 users utilize modules such as General Ledger, Accounts Receivables, Accounts Payable, and Warehouse.
Dynamics AX was tailored by Godrej Infotech to support unique business requirements e.g. integrating Contact Center process with ERP. Secondary sales module has been created to track business and inventory with the delivery partners and outlets to ensure quick delivery.
The solution is further customized to tap the media source whether television, print or web, from where the orders are procured. Thus the accuracy and effectiveness of media sources is measured by checking ROI which later aids and in future decision making. Benefits
“Microsoft Dynamics AX supports sales analyses, manages ROI and thus increases the management confidence in the business operation,” concludes Nitin Patki, VP-Operations, TVC Sky Shop Ltd. It provides the ability to respond quickly to fast changing business needs.Reduces Delivery Time by 75 Percent
Previously, manual redirection of orders, cost the company time and was error prone. “Dynamics AX accurately redirects orders in real time to delivery partners. Faster, transparent processes have reduced delivery time to 6 hours (from 24 hours) in metros and 12-24 hours (down from 2-3 days) in non-metro cities,” explains Manish Chaubey, CEO, TVC Sky Shop Ltd. “Reduced delivery time has further reduced order cancellation, enhanced customer satisfaction and ultimately results in profitable business.”Improves Customer Services and Sales
The ability to react effectively to demands, diagnose delivery issues; and the coordinated seamless information delivers a better customer experience. Managing customer contacts, making and meeting delivery promises, and significantly shorter order to delivery cycle are the key benefits. “We can process over 10000 calls every day,” explains Nitin Patki. “Microsoft Dynamics AX seamlessly tracks every single order in real-time. And customer complaints have already reduced from 2.5 percent to less than 1 percent in just 8 months.”
He adds, “The enhanced customer experience leads to repeat orders, and higher conversions at the Contact Center. This has helped us increase sales by nearly 40 percent for the same media budget.”Improves Accounting Controls
Microsoft Dynamics AX, streamlines financial transactions, and supports fast and accurate invoicing for each order. Credit or debit notes related to operation of delivery partners, cancelled orders, discounts offered, stock balance held by the partners are all effectively and efficiently handled. This brings transparency and delivers accurate information in real time.Reduces Inventory Carrying Cost
The solution ensures Sky Shop saves inventory carrying costs across a multitude of costs such as warehousing, handling, obsolescence, insurance, taxes, damage, and shrinkage etc. Microsoft Dynamics
Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like familiar Microsoft software such as Microsoft Office, which means less of a learning curve for your people, so they can get up and running quickly and focus on what’s most important. And because it is from Microsoft, it easily works with the systems that your company already has implemented. By automating and streamlining financial, customer relationship, and supply chain processes, Microsoft Dynamics brings together people, processes, and technologies, increasing the productivity and effectiveness of your business, and helping you drive business success.
For more information about Microsoft Dynamics, go to:
www.microsoft.com/dynamicsAbout Godrej Infotech
Godrej Infotech is a part of the diversified GODREJ group. It commenced operations as a separate corporate entity in 1999. It is SEI-CMM Level 4 Company and has ISO-9001:2008 Quality Systems Certification for design and development and development of commercial application software, ERP consultancy services and operations and technology. It is in the business of software development, e-solutions Development, ERP implementation, customization and ERP consulting services, database outsourcing and consultancy services. It has three decades of experience in providing cost-effective and high-quality IT solutions.For More Information
For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 426-9400. In Canada, call the Microsoft Canada Information Centre at (877) 568-2495. Customers who are deaf or hard-of-hearing can reach Microsoft text telephone (TTY/TDD) services at (800) 892-5234 in the United States or (905) 568-9641 in Canada. Outside the 50 United States and Canada, please contact your local Microsoft subsidiary. To access information using the World Wide Web, go to: www.microsoft.com
For more information about TVC Sky Shop products and services, call (91) (22) (4247 5959) or visit the Web site at: www.tvcskyshop.com
For more information about Godrej Infotech products and services, call (91) (22) (67964048) or visit the Web site at: www.godrejinfotech.comThis case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.