Mydin | Retail > Customer solution Case study
Mydin Mohamed Holdings, the largest discount retailer in
Malaysia, implemented a K2-based solution to track inventory, speed
its procurement processes and save money. in order to execute on
its everyday low-price philosophy, mydin must relentlessly pursue
bargains and take advantage of short-lived promotions from
suppliers. so, to improve communications between buyers and stores,
mydin created workflows (using sites based on microsoft Windows
sharePoint services) that document all current products, provide
inventory information, and handle new product requests from
stores.
the new processes have significantly reduced the cycle time for
purchasing decisions, enabling mydin to take advantage of more of
the short-lived promotions that suppliers offer.
mydin estimates that the efficiencies of this solution have
saved the company up to $800,000 (u.s.) and increased annual
profits by nearly $300,000.
Problemmydin works with more than 3,000 suppliers. in order to
take advantage of short-lived promotions, mydins management team
needed the ability to quickly obtain information about its store
inventory levels. But the flow of information between local mydin
stores and headquarters was based on manual, paper-based processes.
this slowed decision making and caused mydin to miss out on good
deals from the suppliers.
Because mydin was constantly updating its stores with product
and promotion information, the company also needed a system to
educate its employees on the thousands of new items the retailer
stocks each month.
Solution mydin implemented a K2-based solution that incorporates
automated workflow around several sharePoint sites. new processes
were set up for product requests and to deliver inventory and
product information.
the new electronic processes have helped speed the flow of
information between the stores and the mydin management team. the
response time on a stock request is typically two or three hours
instead of five days, for example; product requests are now
processed in about five days instead of three weeks.
the improved access to information has enabled the team to make
quicker decisions and take better advantage of
promotional opportunities from suppliers. Promotional items now
make up 20 percent of total revenues for the company.
Because the solution is based on microsoft technology, it was
easy to deploy, it is easy to manage, employee training was minimal
and mydin can hire people that are already familiar with the
systems.
Benefits> More supplier discounts> $300,000 (U.S.)
increase in annual profit> Savings of up to $800,000>
Stock-request time reduced from five days to
three hours> New product request time reduced from three
weeks to five days> IT support requirements reduced>
Network ready to handle planned expansion
from 17 to 27 stores this year
Software and services> K2.net 2003> Microsoft Active
Directory > Microsoft Office SharePoint Portal Server 2003 >
Microsoft Office Standard Edition 2003 > Microsoft Windows
Server 2003 > Microsoft Windows SharePoint Services
Copyright 2008. sourceCode technology Holdings, inc. all rights
reserved. Patents pending. sourceCode, K2 and K2.net are registered
trademarks or trademarks of sourceCode technology Holdings, inc. in
the united states and/or other countries. the names of actual
companies and products mentioned herein may be the trademarks of
their respective owners.
Summary a K2-based solution helped mydin realize huge profit
increases by providing workflows that speed the exchange of
information and enable faster purchasing decisions.
location Malaysia induStry RetailSize 3,000
We are now able to take advantage of many more supplier
promotions, leading to savings of $600,000 to $800,000 [per year]
for Mydin. ... The additional promotions help to generate sales
throughout the store and have helped improve our profits [by nearly
$300,000]. malik Bin murad ali, IT Manager, Mydin
