Microsoft Dynamics AX ERP for Retail

Hitachi Solutions delivers end-to-end solutions powered by the Microsoft Dynamics AX for Retail platform providing key capabilities to drive business benefits across your organization. Our approach can help improve the efficiency of your supply chain, staff, and operations to ensure a competitive position in the market while driving more business.

Retailers face a number of challenges in making sure customer service is being optimized. Providing a seamless experience across merchandising, supply chain, marketing, and store operations requires a powerful solution. Based on Microsoft Dynamics AX, our Retail solution drives key benefits such as: improved merchandising through customer insight across channels, integrated pricing, promotion and loyalty programs to drive personalized offers, and powerful point of sale and distribution capabilities. The Microsoft Dynamics AX for Retail solution allows your business to work in unison across different departments to give you unparalleled control over your store operations.

Industry Challenges

Industry challenges can occur in occur in every area of your business, particularly in merchandising and marketing, supply chain, store and channel operations, and of course, IT. If you can identify with the common industry challenges below, then Hitachi Solutions’ AX for Retail solution might be right for you.

Merchandising — Disjointed planning and merchandising processes are unable to react effectively to dynamic consumer buying patterns and ensure the right mix of products are available when necessary.

  • Difficultly getting the products to the shopper in time to generate new sales
  • Lack of visibility in shopper demand and shopper demand
  • Inability to anticipate trends, a follower rather than a leader
  • Desire to increase sales and margins to drive profitability
  • Forecast based primarily on historical data

Marketing — Difficulty bringing customers relevant and timely promotions to increase sales in the highly competitive retail marketplace.

  • Create targeted campaigns that the shopper will find useful and appropriate
  • Ensure promotion pricing is correct for the target shoppers
  • Understand future shopper demand
  • Discover and entrench the desired brand image of the company
  • Ensure consistent and timely in-store execution with inventory to support promotion
  • Develop plans to garner repeated attraction to products/services or to up-sell products

Supply Chain — Struggles to gain visibility across complex supply chains and balance inventory to match customer demand.

  • Additional inventory ties up capital and therefore must be sold at reduced price
  • Difficulty responding to local demand quickly
  • Stock-outs lose sales opportunities and drive shoppers away
  • Complex vendor networks
  • High inventory and storage costs
  • International sourcing considerations and trade regulations
  • Company manages a large number of domestic or international warehouses and distribution centers across a complex global supply chain
  • Needs to make decisions based on current and accurate information

Store and Channel Operations — Cannot deliver innovative, high-quality service at low prices across an omni-channel environment.

  • Long queues at checkouts and customer service points
  • Discrepancy of price at point of sale and shelf label
  • Long cash management processes
  • Employee staffing level does not match shopper demand
  • Complex legal regulations for local working practices
  • No insight into future deliveries and availability
  • Desire to personalize the experience based on customer behavior, touch-points and search paths
  • Increase traffic to the web site and increase conversion rates
  • Increase cross sell and up sell opportunities
  • Build and execute web sites to manage shopping carts, wish lists and orders

IT - visibility constraints across disparate key business functions in retail (planning, merchandising, buying, distribution and sales).

Solution Benefits

Below are the possible results of an Integrated Retail ERP solution implementation.

Merchandising — Seamlessly deliver new and relevant assortments from real time customer insight.

  • Increased speed of products to shopper
  • Audit of all plans and revisions
  • Reduced data errors with one set of master plans
  • One unified view of customer demand drives more accurate replenishment
  • Ability to accurately predict customer needs and take advantage of new market opportunities.
  • Fine tune assortments and pricing to local needs to increase sales
  • Increase margin throughout lifecycle of products (introduction, promotion and clearance)
  • Improve customer service with fewer stock outs to drive increased sales

Marketing — Align customer experience and preferences with loyalty programs and promotions to increase loyalty and margins.

  • Provide centralized management of pricing, promotion, and offers to effectively managed all data in a single place
  • Speed and agility by effectively executing all promotional activities across channels and geographies
  • Increase sales and margins by optimizing price levels based on customer and product analytics
  • Track the actual profitability of promotional activity with full cost and profit recording
  • Deliver a better shopping experience and increase customer loyalty
  • Define the most effective customer focused promotions
  • Ability to up-sell based on customer insights
  • Increase loyalty with service offerings that deliver longer term value

Supply Chain — Streamline supply chain to balance inventory to meet customer demands and reduce inventory carrying costs.

  • Create a seamless omni-channel experience for customers supporting click-and-collect and shop-and-ship as well as traditional e-commerce fulfilment and storefront retail
  • Increased service level, decreased stock-outs
  • Reduce inventory level, increase turns
  • Increased margin by allocating based on store/channel demand
  • Reduce lost sales and increase shopper loyalty by sourcing from the most reliable vendors
  • Integrated, accurate, purchase order processing that consistently meets delivery promise
  • Automatic compliance with customs tariffs and regulations
  • Minimize supply chain costs
  • Improve in-stock position
  • Operations aligned with strategy
  • End-to-end process transparency and visibility
  • Improved employee flexibility, reduced labor costs
  • Increased utilization of resources

Store and Channel Operations — Increase margins and customer satisfaction with efficient service matching needs.

  • Manage multi-channel retail operations, including store, on-line, and call centre channels
  • Utilize role-tailored dashboards to support retail analytics and better informed decisions from the store to the corporate level
  • Create informed management that can make sound business decisions and informed employees who are able to offer customers a personal and targeted shopping experience
  • Increase sales and service levels by matching staff coverage to customer need
  • Compliance to working regulations
  • Increase customer satisfaction by improving service
  • Integrated customer related sales, service, and marketing processes to assist with customer advice and problem solving
  • Optimize processes through fast and flexible request handling, high system availability and elasticity, and optimal use of user-interface performance and ergonomics

IT — Standardize data with unified and simplified processes to transform the retail enterprise.

  • Adapt quickly to changing business requirements
  • Scale your solution as business grows
  • Easily operate across geographies and locations with flexible deployment options
  • Support retail industry standards, including Object Linking and Embedding for Point of Sale (OPOS), to maximize point of sale (POS) hardware and peripheral choice.
  • Manage PCI data security standards compliance and ongoing support.

Retail Clients


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