MICROS-Retail

Relate and ValueCard


Louise Casamento
VP Marketing & Customer Relations
443.285.8144
lcasamento@micros.com

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Case Study - CWDirect: Peruvian Connection

MICROS-Retail (formerly Datavantage/CommercialWare) is a retail technology company that helps retailers worldwide gain competitive advantage by efficiently delivering an exceptional experience to their customers across all channels. Designed to thrive in an ever-changing environment, the solution set consists of open, Java-based store systems, loss prevention, analytics, order management, e-commerce, merchandising, collaborative PLM and marketing applications. Available as best of breed solutions or as an integrated suite, MICROS-Retail solutions are supported with a choice of comprehensive and industry specific professional services.

The Situation
Peruvian Connection wanted to streamline processes, maximize sales of unique limited quantity merchandise and provide excellent service across all sales channels and multiple international geographies.

The Solution
They selected MICROS-Retail’s suite of applications including CWDirect™ for order management, CWStore™ for POS, Collaborate™, Gift Card™, and Integrate™.

The Results
• Improved, centralized communication between the retailer and their suppliers
• Enhanced customer service and satisfaction at all touch points
• Reduction of Web sales return rates due to real-time inventory availability information
• Improved internal reporting efficiency

The customers of Peruvian Connection express their individuality through the uniqueness of the apparel and accessories purchased from the multi-channel retailer. The three fresh apparel collections per year are designed in-house and often handmade by independent artisans in Peruvian villages using native materials; household items and jewelry from the collection are created similarly. Leading the company through continuous growth, while preserving the original craftsmanship and high-level service
Peruvian Connection is famous for, has presented the retailer with challenges requiring sophisticated technology solutions.

Originally a small mail-order company founded by an anthropology student and her mother, the company presented luxurious alpaca sweaters and other apparel to a small audience of selective shoppers. Their catalog circulation grew from a few hundred in 1976 to more than 5,000 in 1979. Some items were also made available through high-end retail chains. As Peruvian Connection continued to grow, several outlet stores were added, as well as an early version of the current websites. While home-grown solutions helped the company meet immediate early technology needs, in the early 2000s the company realized they would need an overhaul.

Real Service
“Providing the luxury-class level of customer service our customers know and expect required us to automate some key processes. Key among these was providing real-time availability information into our limited edition inventory, regardless of channel,” says Rich Lloyd, president and COO.

To accomplish this objective, their CFO Lori Green led a project to install a suite
of products from MICROS-Retail for order management, pricing, promotions, inventory management and analytics as well as CRM. MICROS-Retail’s POS solution, CWStore, is used in the four retail outlets the company operates today. In addition, Peruvian’s global web properties are integrated with MICROS-Retail core functionality.

With this suite Peruvian Connection is able to maintain a central database for all customer activities, regardless of which or how many channels each customer used for his/her interactions. Not only is the data accessible in the corporate office in real time, it is available at each customer touch point. When a customer makes a purchase, the sales agent can see the value of the customer, packaging preferences, purchase history, and other information that enables the associate to deliver top-level service.

The retailer has not, however, eliminated personal touches. Rather, it uses the time gained from streamlining the behind-the scenes process to create and deliver more services to the customer.

Crystal Clear Visibility
Not only is the inventory in each store and the US and European warehouses visible in
real time to all other channels, merchandise in the supply chain is also visible.

Peruvian Connection, working with many independent vendors, uses the drop ship fulfillment capabilities of Collaborate. The solution automates and streamlines every phase of the order process, including fulfillment, customer service, payment, and returns. It allows Peruvian Connection and its vendors to communicate, to send and receive documents, and to share time sensitive information easily.

To illustrate: Peruvian Connection may place an order for 50 pairs of earrings from a particular vendor. They can see that the order has been received and know that the vendor has begun working on the order. As orders are received from customers, the shipping information is sent to the vendor who can fulfill the order directly. Billing the customer and processing the payment is handled through Peruvian Connection. This process allows Peruvian Connection to leverage their supply chain for cost effective and timely shipping. Customer service remains high.

The balance of merchandise not shipped directly to customers is shipped to the retailer’s distribution center and/or one of the company’s store locations. Store inventory is visible to the catalog and web fulfillment departments as well. Within the retail outlet, CWStore provides the capability to manage sales transactions and handle back office functions.

Response and Projection
Creating the designs, sourcing the manufacturing, and developing timelines was a complex process guided by experience. The merchandising and design staff now have clear, quantified sales results to help them make accurate decisions about the future. They can track the popularity of fabric types and product attributes. Profitability can be measured by SKU and channel. Peruvian Connection is on solid future footing, thanks in part to an integrated cross channel technology solution.

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Features and Functions:

Relate from MICROS-Retail, is a retail specific, customer relationship marketing (CRM) solution that unifies marketing planning and management, while providing the tracking tools your marketing team needs to effectively manage your marketing initiatives. From initial analysis, through implementation, execution, and evaluation of results, Relate lets you build and manage an unlimited number of campaigns and promotional activities from your corporate headquarters to store level. You can manage customer names and histories, operate stored value programs, issue loyalty points, build and stratify segments, and launch and measure targeted campaigns all within one application.

Business Benefits
• Improve campaign effectiveness
• Increase shopping frequency
• Build relationships at POS
• Track and report on results
• Minimize waste
• Motivate customer loyalty