Make Up Store

Cosmetic chain Make Up Store growing at rocket speed

“This solution enables us to monitor sales in the stores to see what is in demand, which is a huge benefit when we make our strategic decisions. Our business is quite special, in that many of our products tend to move fast and have a very short lifecycle.”

- Kerstin Karphed , CFO
Make Up Store

The first Make Up Store was founded in Stockholm by Mika Liias less than a decade ago. Mika’s goal was to create a “World of Colors”, a unique concept not found on the market earlier. With beautifully packaged products and top service all the pieces fell in place. Today, Make Up Store is one of the fastest growing companies in Scandinavia, with over 130 shops in 20 countries.

Since 2003, turnover at Make Up Store has grown from 45 million SEK to around 130 M in 2008. On average, a new Make Up Store is opened somewhere in the world every other week.

Inevitably, this positive development has created new demands for control over the product supply chain. The expansion of the Make Up Store involves changing needs and requirements, with new challenges appearing at the same rate as the company growth. Culture and legislation varies from one part of the world to another and all such elements must be taken into account.

“We needed an effective tool to effectively manage our supply-chain. Therefore, we looked for a total solution that would give us the means to control things centrally yet would be flexible to use in the stores in business environment around the world. A solution that could be used all the way for the chain, from the supplier through the stock and POS to the customer,” says CFO, Kerstin Karphed.

Microsoft Dynamics NAV was chosen together with the established retail solution.

make up3The Solution

“To start with Microsoft Dynamics NAV was natural, since we prioritized traceability. And this is where Microsoft is superior,” says Kerstin Karphed.

Anders Enström from Logica, an LS Retail implementation partner, adds: “Together with LS Retail, Microsoft Dynamics NAV reaches a completely new level. Together, the two make up an unbeatable solution for retail. This combination of two systems, each one a leader in its area, provides a comprehensive solution: the NAV financial system with all its strengths and then LS Retail with all the retail specific functionality. The POS functionality automatically updates the inventory when a product is sold, which again generates order proposals for new purchase orders. This ensures optimal balance of capital tied up in inventory and orders – and minimal risk of empty shelves in the stores. Ordering levels are based on detailed information about each specific product. “

With the new system, Make Up Store can extract a large variety of valuable data to analyze purchasing behavior and customers, which gives a solid basis for good strategic decisions for example on how to target different age groups. Additionally, Microsoft Dynamics NAV together with LS Retail provides a central overview. An example of this are the tools for shrinkage control and detailed handling of returns, which makes it easy to assess why a particular item is returned more often than it should be.

“The solution gives us huge benefits. There is an enormous amount of information to retrieve and we can create all kinds of reports to draw important policy conclusions,” says Kerstin Karphed.

Anders Enström adds that the solution is perfectly suited for different kinds of businesses, thanks to its reliability, broad functionality and simplicity: “Thanks to the familiar interface, the system is easy to use and improves life for the staff at the stores. It also always has up to date information in the POS, all items are always in stock and the whole system is extremely stable in operation.“

Microsoft Dynamics NAV / LS Retail has so far installed for Make Up Store in Sweden, Norway, Denmark, Finland, Iceland, Canada, USA, Singapore, Thailand, Malaysia, Indonesia, Australia, Russia and Lithuania. More countries will be added to this list soon.

An early upgrade is being considered to take advantage of all the new opportunities that the latest versions of the software open up.

make up1Summary

MISSION: To create an effective, global solution for the whole supply chain as both an increased central control and is adapted to all the specific conditions that apply in the countries where the Make Up Store has its stores.

SOLUTION: Microsoft Dynamics NAV together with LS Retail.

RESULTS: Central control of the whole product supply chain and a user-friendly and reliable solution for employees worldwide.

 

Implementation Partner