Retail Chain Manager for Microsoft Dynamics™ AXNameTitleMicrosoft Corporation

PROFIT

Agenda

• Introduction

• Industry Perspectives and Challenges

• Solution Overview

• Business Benefits and ROI

• Conclusion

[VAR Overview]

• [Company overview]

• [Services]

• [Date company founded]

• [Number of employees]

• [Financial information]

• [Microsoft partner status]

• [Awards]

Industry Perspective

• Grocery Stores– The USD $400 billion U.S. retail grocery industry includes

approximately 40,000 companies that operate 70,000 grocery stores

• Apparel – U.S. retail clothing industry includes approximately 40,000

companies that operate 80,000 stores

– Combined annual revenue of USD $130 billion

– Highly fragmented and heavily concentrated at the top

From: First Research, Inc., 2005.

Industry Perspective continued

• Sporting Goods– U.S. retail sporting goods industry includes approximately 20,000

companies with combined annual revenue of USD $25 billion

• Furniture– U.S. furniture retailing includes approximately 20,000 with combined

revenues of USD $45 billion

– Highly fragmented industry; only approximately 30 companies with annual revenue higher than USD $100 million

Industry Perspective continued

• Flooring – Approximately 700 manufacturers; 4,000 wholesalers, and 15,000

retailers in the U.S.

– Combined end-user sales of USD $25 billion

– Highly concentrated for manufacturing; highly fragmented for retailing

• Jewelry– U.S. annual revenues of USD $44 billion for 28,000 specialty,

department, and discount stores

– Highly fragmented; top 10 jewelry chains hold less than 25% of the market

From: First Research, Inc., 2005.

Industry Perspective continued

• Specialty Retail– Approximately 40,000 specialty retail stores with total annual

sales of USD $350 billion

– Includes shoes, clothing, electronics, appliances, jewelry, sporting goods, toys, books, music, luggage, pet supplies

From: First Research, Inc., 2005.

Industry Trends and Pressures

• Competition against larger companies with more resources to invest in their IT infrastructures

• Maintenance of large inventory levels at stores and distribution centers

• Need to attract and retain skilled staff

• Management of shortened time-to-market (manufacturing-to-retail)

• Lack of visibility into key data to support decision making

• Identification and analysis of customer trends

How Technology Can Help

Technology can help retail businesses:• Integrate business processes

• Manage the supply chain cost-effectively

• Manage skilled staff efficiently

• Reduce manual processes

• View and analyze critical business data

Value Proposition

Retail Chain Manager for Microsoft Dynamics AX can help streamline your retail operations by managing products, processes, transactions, and relationships for greater profitability.

Solution Overview

• A fully integrated solution designed specifically for the retail industry

• Solution increases profits by helping your business:– Boost efficiency

– Enhance business insight

– Better connect people, information, and processes across your business

Business Benefits

• Streamline supply chain processes

• Gain insight into business operations

• Customize solutions to fit your business

• Build on existing business systems

• Generate positive ROI

Streamline Your Supply Chain

Manage the product life cycle more effectively

• Automate inventory and warehouse processes

• Get real-time information about exact inventory levels

• Provide remote access to warehouse processes

• Define campaign distribution plans to push items from central warehouse to stores

• Use advanced loss prevention tools

Streamline Your Supply Chain continued

Manage more effective campaigns, pricing, and discounts• Plan and organize unlimited promotions and sales events

• Roll out campaigns across the company or on a store level

• Manage pricing and discounts more flexibly

• Get up-to-date sales, financial, and supply chain data

• Set up a variety of discount formats (multibuy or mix-and-match)

• Manage cash registers centrally and apply changes easily

• Automatically collect price change data and create barcodes

Gain Insight into Operations

Get real-time visibility into performance and spot trends quickly

• Track sales in real time using key performance indicators

• Access information instantly from integrated POS systems

• Analyze data by product, store, campaign, location, employee, supplier, and customer

• Gain insight into sales performance and customer buying trends

• Respond more effectively to diverse needs and changing lifestyles

Gain Insight into Operations continued

Access information easily when, where, and how you need it

• Analyze logistic flows between stores and warehouses

• Help customer service employees improve service levels

• Link your business activities across multiple channels

From POS to Back Office

Microsoft Dynamics AX POS

Retail Manager

Inventory

Sales

Accounting

Retail Integration

Microsoft® Point of Sale

Other

Retail Functionality Core Microsoft Dynamics AX

Cash sales

Order sales

Third-Party POS Systems Retail Services for Microsoft Dynamics AX Environment

Sh

op

Us

ers

Customize Your Solution

Tailored solution

• Categorize items for any kind of retail environment

• Network and support chain stores with different profiles

• Use multiple languages and currencies

• Set up multiple payment options

Customize Your Solution continued

Flexible pricing and discount controls• Manage dynamic pricing and discounts

• Define sales periods or days of trading for interval-based reports

• Follow store performance; drill down for more detail

• Set up different sales processes

• Set up a variety of discount formats

Logistics

Store Systems

Solution Map

Marketing

Retail Chain Manager for Microsoft Dynamics AX

Retail Functionality

BusinessAnalysis

Human Resource

Management

FinancialManagement

SCMEnterprise

PortalCRM

Microsoft Dynamics AX Core Functionality

POS Integration

Item/Shelf Labeling

LossPrevention

Barcode System Integration

ReturnsManagement

Store Financial

Management

Merchandizing

Distribution ReplenishmentWarehouseProduct Life Cycle

Management

Trend AnalysisPromotionsPricing and Discounting

Warranty CardsRetail Sales

DataWarehouse

Loyalty/Gift Cards

Build on Existing Business Systems

• Integrate with existing retail systems• Connect with Microsoft Dynamics AX core functionality

as well as the following: – Third-party POS systems

– Microsoft® BizTalk® Server

– Microsoft Commerce Server

– Microsoft Retail Management System

– Microsoft SQL Server™ Reporting Services

– Microsoft Office SharePoint® Portal Server 2003

• Use flexible integration tools– Extend functionality using applications or add-ons

– Work with industry-standard technologies

Support You Can Trust

• Reviewed by internal development and quality assurance staff at Microsoft

• Supported by Microsoft Support Services globally

• Technical review prior to launch and throughout the product life cycle helps ensure the following:

– Greater overall quality

– Performance management

– Stability through service packs or major releases

Customer Success: Team Sportia

“The basis for us was to get flexible and efficient goods handling … with an optimization of information to our shops. … We have got a whole lot of functions which we did not have before. For example, orders are now registered via the Internet.”

— Richard Westerlund, IT Manager, Team Sportia

Updates shops with prices, sizes, models, and colors

Improves control of offers, campaigns, invoicing, etc.

Imports product data and pricing for external vendors.

Concurrently imports sales data from POS with more than 20,000 sales per day.

More that 30 fully automated integrations with external systems.

Retail Chain Manager for Microsoft Dynamics AX

Centralized data for 150 cash registers and supports 250 users

Included an internal B2B portal for stores to order online

Integration with joint purchasing portal (www.sportretail.com) and outsourced central warehouse systems

Team Sportia needed a business management solution that could connect stores with the main office, centralize and analyze data, and integrate with existing business systems.

Positive ROI

• Smooth and rapid deployments– Integration tool

• A familiar user experience

• Microsoft Dynamics Support Services

• Tight connections to your existing IT investments– Microsoft SQL Server 2000

– Microsoft Internet Information Services 6.0

– Microsoft Office system programs

– Microsoft Windows® operating system

Deliver Real Results

• Nucleus Research study*

– 75% of participating companies gained a positive ROI

– Payback within 23 months

• Business results– Staff reductions or redeployments

– Reduced IT costs

– Improved customer and partner satisfaction

– Improved operations and increased visibility

– Ability to tailor industry-specific functionality

*Nucleus Research, Inc. The Real ROI from Axapta. Research Note E116, October 2004.

Conclusion

Key functionality helps you do the following more easily:

– Streamline processes

– Access and analyze critical information

– Manage your business more profitably

– Achieve positive ROI

Learn More

To learn more about Retail Chain Manager for Microsoft Dynamics AX —

Contact: [enter speaker information]

Visit: www.microsoft.com/dynamics/ax

© 2006 Microsoft Corporation. All rights reserved. Microsoft, BizTalk, Microsoft Dynamics, the Microsoft Dynamics logo, SharePoint, Windows, and Your potential. Our passion. are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. All other trademarks are property of their respective owners.

This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.