Lawson Software Delivers M3 Solutions to Global Furnishing Giant IKEA
IKEA optimizes Distribution Performance with Lawson M3 Solutions
HONG KONG (July 30, 2007) – Lawson Software (Nasdaq: LWSN), formerly Intentia International AB, today announced the successful deployment of Enterprise Resource Planning (ERP) systems for Dairy Farm International’s IKEA franchise in Hong Kong and Taiwan. Dairy Farm International, the leading pan-Asian retailer, chose Lawson M3 solutions to optimize business processes in its seven IKEA stores and two warehouses in Hong Kong and Taiwan including replenishment, inventory, finance, distribution and logistics, and procurement.
In Hong Kong, IKEA employs a centralized warehouse and store replenishment model. A hybrid distribution model is used in Taiwan where a centralized warehouse is coupled with real-time replenishment of inventory at the back of the store. Dairy Farm realized that it needed a point-of-sales solution that integrates with the backend inventory and distribution functions for maximum operational efficiency. Dairy Farm, the franchisee, chose Lawson’s M3 as the backend ERP solution integrated with RSF, a Lawson partner’s Point of Sale solution.
Lawson M3 solutions links the points-of- sale with the supply chain including functions such as inventory statistics, warehouse management, distribution order processing, transportation management, and sales budget planning. The Lawson M3 solution virtually links supply directly to demand. It ensures that products are available for purchases, improves logistics handling for shorter product delivery time, and ultimately balances inventory to satisfy demand while avoiding obsolescence. To date, 550 users and 100 point-of-sale tills in IKEA’s Hong Kong and Taiwan operations are linked by the Lawson M3 solution.
Lawson M3 solutions enhanced the IKEA customer experience in many ways. For example, customers ordering oversized delivery items at the IKEA stores today are served by IKEA’s customer representatives who can confirm delivery time and details in a matter of seconds. Delivery time is also shortened because of the increased supply chain visibility.
“The Lawson M3 solutions also offer a low Total Cost of Ownership (TCO), which presents a good case for achieving return-on-investment (ROI). As a retailer of furnishing for everyday people, we want to be able to derive the best value out of our IT solutions so that the savings can be passed on to our customers. With Lawson M3, we are able to do this and enhance the store and customer experience at the same time. added John Shelton, Group IT Director of Dairy Farm, representing the IKEA franchise business.
With an integrated suite of applications, Lawson M3 solutions offer TCO advantage compared to its competitors and other best-of-breed solutions. According to a study by Aberdeen Group, Total Cost of ERP Ownership, Lawson has the lowest average software cost per user among the five ERP vendors studied. Other vendor applications cost up to 48 percent more per user.
“Functionality and TCO are clearly the most important criteria in ERP software decisions. Dairy Farm’s IKEA business is a great example of a company needing specialized supply chain functions at a reasonable TCO, said David Hope, Regional Managing Director, Lawson Software Asia and Japan. “We’re proud to enable Dairy Farm’s IKEA business in enhancing supply chain efficiency to deliver their world famous home furnishing products to even more satisfied customers in Hong Kong and Taiwan.
Source: Lawson
