Naivas Limited, a leading Kenyan retailer with 29 stores, including five hyper markets, found that its ambitious growth plans were being hindered by isolated ERP ad PoS systems. The solution was to implement Microsoft Dynamics AX Retail 2012, which not only delivers accurate, enterprise-wide and timely business-critical information, but is also making a significant difference to Naivas revenues.
Naivas Limited is one of the largest retailers in Kenya. It boasts several hyper markets in its portfolio, including the largest one in the country. In a fiercely competitive market it has carved out a strong position and experienced large growth.
Seeking Support for Expansion Plans
|Our annual organic growth is approximately 37%. Microsoft Dynamics AX is adding 7% to this, and we expect this to increase up to 15% in time.|
| Willy Kimani|
Marketing and IT Manager, Naivas Limited
The company has plans and aims to expand into neighboring countries. In fact, regional growth plans are central to its long-term strategy. However, it understood that in order to expand it needed a robust and reliable ERP system that could be used as a foundation for critically important business planning, ranging from financials to inventory and supply chain management.
The company was using Microsoft Dynamics GP and Microsoft Dynamics RMS, each as a stand-alone system. Up until recently, they had served Naivas well for both financial planning and Point of Sale information.
However, to follow the rapid growth it required systems in which data could be collated from disparate sources and made available from a single source to facilitate business-critical decision making.
Retail Specific ERP for Accurate Results
Naivas evaluated ERP solutions from Oracle, SAP and Microsoft, and decided to implement Microsoft Dynamics AX Retail 2012, running on Microsoft SQL Server. Impax Business Solutions, a Microsoft Dynamics ERP Gold Certified Partner, was in charge of the implementation, as a technology partner that has successfully implemented some of the Microsoft Dynamics solutions previously used at Naivas.
“The new system provides robust business management capabilities, ranging from financial, warehouse and retail management, as opposed to each of the stand-alone systems that Naivas was using previously. This flexibility to integrate the system modules empowers Naivas and helps them maintain a competitive edge, as well as use the latest technology”, explains John Mwaura Thuo, CEO at Impax Business Solutions.
Dynamics AX Retail 2012 delivered a raft of retail-specific modules that not only helped Naivas to address its immediate challenges, such as an increasing number of outlets and regional growth, but have also contributed to revenue growth.
Adding to the Bottom Line
Naivas is now able to view all transactions and information in a simplified and timely manner. Specifically, it has provided a much sharper focus for sales, enabled support for accurate supply chain logistics, provided a transparent overview of financials from orders to invoices, enabled integration with other country operations, and reduced turnover shrinkage by 2.2%.
Importantly, it has also provided granular insight into issues such as pilferage and customer behavior. This has enabled the company to take actions that have, to date, reduced pilferage by 3.8% while also providing a platform for customer promotions.
Willy Kimani, Business Development, Marketing and IT Manager at Naivas Limited, explains the specific impact of the improvements that Microsoft Dynamics brought to the company: “Our annual organic growth is approximately 37%. Microsoft Dynamics AX is adding 7% to this, and we expect this to increase up to 15% in time.”
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Document published January 2014