This document discusses how a specialized retail ERP system can help reduce losses caused by employees and suppliers. It explains that employees can cheat companies by not scanning all items, entering wrong quantities, or giving unauthorized discounts. Suppliers can also cheat companies by delivering incorrect quantities, invoices that don't match contracts, or expired items. A specialized retail ERP with features like perpetual inventory, strict user permissions, logging of data changes, and contract tracking can provide transparency and prevent such losses by closely monitoring employee and supplier activities. The document promotes a specialized retail ERP solution from LS Retail that is built on the Microsoft Dynamics NAV platform.

1. How Specialised Retail ERP Prevents
Company Owners from Being Cheated by
Employees and Suppliers
Riga Food
2011 September 7-10

2. Topic in Detail
My task today will be to show you that a
specialised Retail ERP can help reduce
losses caused by:
•Company employees
•Company suppliers

3. Why we talk about that at all
 Because people are
just people and they
make mistakes

4. 4

5. Methodology
• Conducted by Centre for Retail Research
• Mail survey to retailers in 42 countries
• Highest number of countries ever surveyed
• Russian retailers added for first time
• 1.103 retailers responded
• Aggregate sales of €712,7 billion
• Europe/Russia: 571 retailers; €335,735 Million in retail sales
• Timeframe of findings: July 2009-June 2010
5

6. European Shrinkage By Country
• Russia, Turkey
well above
global averages
• Austria and
Switzerland the
lowest among
measured
European
nations
6

7. Most-vulnerable merchandise
• Small, inexpensive, “mobile” items
• Electronics
• Cosmetics
• Alcohol/food
• Clothing
• Jewelry
7

8. Sources of Retail Losses in the Baltics
8

9. Employee theft
 Do not scan some items
 Enter wrong quantities
 Enter codes of other cheaper items
 Do not register sales transactions at all
 Take back items that have not been sold
 Give too big discounts
 Enter lower prices
 Sell their own items
 …

10. Employee theft -
Modern Retail EPR can:
 Support Perpetual inventory method
 Support very rigid user rights policies
 Log every change in the setup data
 Give full transparency into cashier behaviour
 Be integrated with video surveillance systems
 Support ‘Flash’ physical inventory counting
 Eliminate manual data entering

11. Supplier theft
 Deliver not ordered items
 Deliver too much
 Deliver too little
 Prices are bigger than agreed
 Invoices do not match delivery
 Invoices do not match contract
 “Best before” dates do not match contract
 …

12. Supplier theft -
Modern Retail EPR can:
 Keep track of all the contract details:
 Items, quantities
 Delivery dates
 Prices, discounts
 Payment terms
 Automate goods receiving
 Register receiving documents as separate transactions
 Compare invoices with the contracts details ‘on the fly’
 Compare invoices with the receiving documents
 Support regular reports about wrong supplier behaviour

13. What is a specialised ERP?
 An ERP created exclusively for the given sector
or business vertical
 Very expensive
 A lot of functionality
 A modern general ERP + specialised modules to
run a specific business
 Usually good Value to Price Ration
 Expands standard functionality: 85% → 98%

14. Specialised ERP on Navision
 80% of retail companies using Navision also use LS Retail.
 LS Retail is the most flexible solution on the market that
can be very fast adapted to the changing company needs.
 According to customer surveys, using LS Retail as the
platform for their solutions, we can help retailers achieve
30% more ROI than with alternative platforms.
End-to-End Retail Solution
based on Microsoft Dynamics

16. LS Retail Coverage
 1.900 customers
 35.000 stores
 77.000 POS
 130 Countries
 33 Languages

17. Summing up – What
 Before - is a modern ERP going to bring value?
 Now - WHICH TOOL TO CHOOSE?
 Every one of our customers claim that with a
specialised Retail ERP they gained a better control
over their employees and suppliers.

18. Summing up – What in Detail
 You will see if what cashiers sell is consistent with what
is in stock or with what they enter into the system.
 You will control what data cashiers can or must enter.
 You will see if goods deliveries are consistent with
supply contracts and invoices.
 And people will know that they
can be easily checked at any time!

19. Summing up – Why and How
 There aren’t many IT companies in Europe with
190+ employees, 90% of whom are dedicated for
Retail.
 We deeply specialise and our customers love it!

20. The right knowledge: Facts
about the company
 In Retail IT since 1993
 In Navision and LS Retail since 1999:
 MICROSOFT – Gold Certified Partner (5
competencies)
 LS Retail – Gold Certified Partner
 120+ NAV customers
 Implementations in LT, LV, EE, UK, RU, UA, CZ, PL,
RO, SE

21. Customer testimonials
„New Vision are experts in the complex Retail IT systems.
They can evaluate the problem’s impact on the business
processes, assign the correct task priority or just simply do
consulting via the phone. That’s the big advantage in
comparison with the general helpdesk or call center
companies.
Andrius Šemeškevičius
„RIMI Baltic" IT director

22. Call to Action
 Let’s talk
 Free diagnostics and customer-tailored
presentations
 Visit www.new-vision.com
 Visit www.lsretail.com