LC Waikiki finds the right fit for innovation with Dynamics 365

Founded in 1988, LC Waikiki is a well-known Turkish retail fashion brand with stores in 60 countries. Offering a range of trendy apparel for adults, children, and infants, the company is driven by a mission to make dressing well affordable and attainable. When it was time to modernize its long-standing Dynamics AX solution, LC Waikiki chose Dynamics 365 to refresh its digital infrastructure and modernize operations. The company needed a unified, scalable, and intelligent enterprise resource planning (ERP) solution to manage its complex global operations, including more than one million transactions daily—and Dynamics 365 Finance and Supply Chain Management were the perfect fit. 

A tailored solution

With more than 1,300 stores worldwide, Istanbul-based LC Waikiki has experienced healthy growth, including a 54.8% increase in revenue in 2024 and an annual revenue of approximately ₺207 billion, equivalent to around USD5.87 billion. Operating in Türkiye presents unique challenges compared to other markets, prompting the company to run on a dedicated Dynamics 365 instance, while other regions share a separate one.

LC Waikiki operates with the belief that everyone deserves to dress well—a mission supported by a workforce of 55,000 people across dozens of geographies. The high volume of transactions and scalability needs led to the strategic decision to separate Türkiye’s operations from the rest.

Streamlined user experience and automation

Dynamics 365’s flexible, web-based interface allows users to manage tasks, dashboards, and reports from a single screen. They can view to-do lists, track pending tasks, and access graphs and reports all in one place. 

Automation has simplified cost and revenue calculations, enabling tailored business portals and deep data insights. LC Waikiki leverages Power BI, Power Apps, and Power Automate for enhanced reporting and automation, while Azure Synapse enables advanced analytics. Power BI dashboards empower teams to act quickly and proactively. “This transformation is a key step toward building an intelligent and connected enterprise—where data, technology, and strategy converge to shape more agile, resilient, and future-ready business models,” shares Nagihan Döver, Finance Strategy & Process Development Manager at LC Waikiki.

A financial process and reporting makeover 

With Finance and Supply Chain Management, LC Waikiki has automated over 55,000 transfer orders, 1,100 purchase orders, and 154,000 retail sales headers daily. Inventory  adjustments now flow directly into Finance, saving teams hours of manual reconciliation. “With Dynamics 365, we gain real-time visibility into our inventory across all locations, empowering faster, data-driven decision making and enhancing our overall operational agility,” says Erdal Arslan, Financial Affairs Group Manager for LC Waikiki.

Additionally, the company’s monthly closing process has been reduced from 10-12 days to just five, thanks to improved visibility in accruals and subledgers.

Centralized reporting and analytics in Dynamics 365 have also made a big impact for LC Waikiki. Embedded Power BI reports in Dynamics 365 give employees instant access to KPIs, with employees no longer waiting days for IT to generate reports. “We’ve unlocked a whole new level of financial insight. With Dynamics 365, we can slice data by product line, region, or customer in seconds. Decision making is faster and more accurate,” says Arslan. 

Trendsetting innovation in the age of AI

LC Waikiki isn’t just offering the latest fashion—it’s redefining how users interact with ERP systems. The company is reimagining finance and procurement operations using Microsoft Copilot Studio, bringing AI-driven automation, natural language understanding, and system integration into everyday workflows.

Rather than using traditional forms and menus, the company has designed something that’s really turning heads: the company’s FinChat bot. This chat-based interface allows users to interact with Dynamics 365 Finance by asking questions or initiating actions such as submitting invoices or creating purchase requisitions, providing a more intuitive and efficient way to work with backend systems. 

Built on the Copilot sidecar, FinChat introduced a conversational sidecar in Finance apps. Users can enter questions or express their needs directly in the app, and the system interprets the context to provide relevant and tailored information. For example, a user can request all invoices assigned to their department and their status, eliminating tedious manual searches, and ensuring accuracy. 

In Türkiye, LC Waikiki’s stores operate under revenue-based rental agreements, where monthly payments vary based on sales. Rent calculation, previously a time-consuming process, is now automated by FinChat, which retrieves data and creates records efficiently.

FinChat also assists with submitting transactions and managing tasks such as vendor payments and payroll. As a result, LC Waikiki has significantly reduced the time spent on routine queries such as account balances, cost center spending, and invoice statuses. 

“AI-driven automation has reshaped how our teams work, turning complex, time-consuming reporting into an effortless experience. With instant access to the right information, they can focus less on searching and more on making strategic, value-adding decisions,” states İlker Çağatay Çetin, Finance Director, LC Waikiki Headquarters.

Overall, FinChat has contributed to a 30-50% reduction in time spent retrieving routine financial data while increasing self-service reporting adoption across business functions. Users also report fewer errors and inconsistencies because data is pulled directly from Dynamics 365.

Adding pieces to the collection

Another innovation is Buy-Buy, an agent developed using Microsoft Copilot Studio, which supports store employees in creating purchase requisitions for indirect materials. The agent quickly answers common questions about procurement policies, approvals, order status, and receiving details. The next version of the agent will automatically create purchase requisitions.

The company plans to build additional AI agents using Microsoft Copilot Studio. In the works are Cost Hunters, which aims to calculate domestic and international road transportation and warehouse costs; and Global Stars, which will determine language translation and document requirements for different countries to create standardized guides.

The best part? No technical experience is required. Users across hundreds of stores report high levels of satisfaction and less need for technical support.

Next steps

LC Waikiki’s newest innovation is an agent that supports vendor bidding, integrating with a local system to support Requests for Quotation. This allows vendors—even those not currently in ERP—to receive bid invitations and participate in procurement. 

In addition to finance and procurement-focused copilots, the team has built a Legal Audit Agent that monitors the official legal authority’s website for updates on rules and policies. When the system detects a change like a new tax regulation or compliance requirement, the agent notifies relevant users in Microsoft Teams with a pop-up message summarizing the change. It even compares the old and new versions and explains how the change might affect existing processes. This ensures that the company stays compliant and informed in real time, without laborious manual tracking.

As part of its ongoing transformation, LC Waikiki will continue to expand its use of AI and Copilot Studio. Upcoming initiatives include immersive Copilot experiences for logistics and HR, and further expansion of Dynamics 365 to additional regions, including integration with third-party bidding platforms.