History of success in the Lush Russia company

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Client:

LUSH RUSSIA

Industry:

cosmetics production

Period:

February 2012 – present time

Products and Solutions:

MICROSOFT NAV

Lush – cosmetic company known for its products made manually from natural ingredients.

LUSH company works on the market of cosmetic products since the end the 70s. During this time the company has gained the popularity in almost all countries around the world not only because of high quality and naturalness of their products, but also for the high ethical principles, it adheres throughout its entire history. LUSH also pays great attention to environmental issues and this company is an active fighter against testing cosmetics on animals.

The situation

The Lush Russia company has an extensive network of stores throughout the territory of the Russian Federation because of this there is an ongoing need to access relevant management information showing the situation in a particular region.

4 years ago LUSH Russia decided on necessity to optimize business processes by building a corporate information system. As a platform was chosen Microsoft Dynamics NAV ERP-system, proven to be an effective tool for optimization and business development.

Initially, the implementation of the Microsoft Dynamics NAV ERP-system was conducted by two partners, consistently replacing each other, but unfortunately, the results expected by LUSH management did not come true, as the tasks assigned to the system was not fully carried out. In 2012, Mindcore became the partner in the project associated with the support and improvement of LushRussia information system. Companies formed not just working, but warm and friendly relations, continuing for the moment.


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It is worth noting that since the beginning of cooperation with Mindcore we have not encountered any difficulties with the closure periods, and the preparation process of tax and management reporting has become much easier for us …

E.V.LOMOVA, CHIEF ACCOUNTANT

The solution

Project on support for the Lush information system began with an analysis the current state of implemented system, which resulted in the following conclusions:

  • initial implementation was carried out without the necessary project documentation;
  • at the time of the analysis, the system uses only two main modules – Financial Management (including Russian localization functionality), Staff and Salaries. Functionality of goods management and business intelligence systems taken beyond, and maintained in external systems (TradeHouse, etc.);
  • lack of key professional from LUSH Russia with comprehensive knowledge of embedded business systems, which prevents form a unified vision and strategy for the development of current business systems.

According to the results of the analysis Mindcore specialists proposed the following scheme for future cooperation:

  • Analysis and design development for the implemented information systems.
  • Upgrading to MS Dynamics NAV version 2009 R2.
  • Finalization of MS Dynamics NAV under the new requirements.
  • Systems integration with MS Dynamics NAV.
  • Training and support for users.

At the moment, a set of works designated in the scheme is fulfilled, except for MS Dynamics NAV upgrade to version 2013 R2, as the client decided to postpone the transition to a new version.

As a result of this work we have been resolved following tasks:

  • Created a unified integrated environment for company management;
  • Automated orders and purchases;
  • Improved module “Staff and salary”, taking into account the specifics of the company;
  • Automated accounting of fixed assets;
  • Automated recording of financial transactions;
  • Implemented the import of data from the Trade House in the module “Sales and Marketing”;
  • Integrated accounting system with an electronic reporting system “Taxcom.”

We would like to focus on the finalization of the “Staff and salary” module.

LushRussia is actively using the “Staff and salary” module, which is not typical for Russian companies, since payroll in Microsoft Navision is much more difficult to carry out than in other accounting systems such as 1C, for example. In this case, a key objective was finalization of the “Staff and salary” module to fit the company specifics.

In particular, it was necessary to consider the following features:

  • recruitment of additional staff during seasonal sales spikes (the eve of holidays), and the dismissal at the end of the season. Thus one person can operate for several seasons, so it was necessary to consider a scheme that allows not to issue a new employee card every time, as this is contradicts the accounting rules, and create the necessary conditions to search for previously issued card by the individual tax number with the possibility of its further actualization;
  • frequent changes in the rules for maternity leave allowances calculation since over 80% of employees are women.

The work done by Mindcore specialists allowed to consider in the information system organizational features of Lush Russia activities and optimize the accounting, taking into account specificities of the company. Currently Mindcore solve the current problems of the client and plans to further develop the information system.

The development

Today Mindcore continues to provide its services to support and develop the information systems of the Lush Russia company, and also solves the current problems associated with the change of legislation in the area of wages.

Future plans include transition to a newer version of Microsoft Dynamics NAV 2013 R2.


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