How Microsoft Dynamics assisted Delhi Duty Free Services to customize processes

Established in 2010, Delhi Duty Free Services (DDFS) operates duty-free shops spread over 40,000 square feet at Terminal 3 of Indira Gandhi International Airport,New Delhi.

DDFS offers an extensive range of products including perfumes, cosmetics, liquor, tobacco, and confectionery. The company aims to provide travelers with a unique shopping experience.

DDFS started operations inIndiawith an eye to the future, implementing an end-to-end retail management system. This would address all aspects of the duty-free retail; meet unique travel retail needs, and back-office demands.

DDFS identified several challenges that curtailed agility in workflows, compliance, and inventory checks. For effective management, it required an automated statutory compliance, as well as currency conversion at the point-of-sale (POS).

To save time, DDFS wanted to deploy a reporting tool to track void lines and void transactions along with returns, refunds, and manual discounts.

“We wanted to invest in a scalable, flexible enterprise resource planning (ERP) system. This would fully integrate point-of-sales (POS) terminals, inventory, and financial systems, to bring efficient management and transparency,” said Abhay Pandey, head-IT, DDFS.

A relatively new business, DDFS was keen to analyze data on customer buying patterns as well as feedback.


DDFS’s decision to deploy an end-to-end retail solution hinged on two critical factors:

Ability to customize processes

User-friendly solutions for quick adoption

These two criteria would ensure smooth operations at the stores. It opted for LS Retail and Microsoft Dynamics NAV with a proven track-record in the retail industry, which met both its requirements.

DDFS then shopped for a skilled implementation partner and approached Microsoft® Gold Certified Partner, PricewaterhouseCoopers (PwC) for its wide clientele in the retail and distribution sector. PwC started the implementation (LS Retail 6.1 and Microsoft Dynamics NAV 2009) in April 2010.

The solution went live within 3 months.

Modules deployed include General Ledger, Fixed Assets, Inventory Management, Purchase and Payables, Sales and Receivables, LS Retail Base, LS Retail In-store Management, LS Retail Store, and LS Retail POS.

PwC tailored the solution to customize the complex workflows, meet statutory compliances related to Indian customs, and facilitate the integration of third-party applications. The centrally managed retail solution seamlessly integrates with the surveillance system to effectively control losses due to thefts.

“Surveillance capabilities integrated with POS systems enable consistent and efficient data integration to improve security. Integration with existing physical security systems has added additional capabilities, thus improving the return on investment,” said Abhay Pandey, head-IT, DDFS.

PwC integrated the payment gateway application to facilitate online payment at POS. This allows high-speed transactions at POS with integration to billing application, thus minimizing human error and enables reconciliation in real-time.

Passport and Boarding Pass Reader captures the passport and flight details in a single sale invoice at POS and sends the information to the Dynamics NAV

Envisaging the growth of the business, and thus, the need for better inventory management, DDFS implemented the auto replenishment cycle for its stores and warehouses. The LS Retail Replenishment System calculates the quantity needed at the stores or the central warehouse and suggests what should to be purchased from vendors or transferred from an external warehouse to an internal warehouse, and to the stores.


LS Retail on Microsoft Dynamics NAV manages all elements of the store, from POS terminals, to in-store systems and head-office functions. The new business solution allows duty- free retail operations with 24×7 operations support, increases business intelligence, improves merchandise decision making, and real-time performance reports.

Automated Processes Save Time

LS Retail NAV sends the sales data from a store to the central database at the head office. The system updates all locations with new item information, price changes, and discount offers. The in-house IT helpdesk team centrally controls all these processes. “Automated processes such as electronic shelf labeling, barcodes and passport reader capture all information required. Managers can thus focus on other important business issues, rather than on the administration of tracking the work.

Multicurrency Transactions Made Simple

The unified business solution supports multiple languages and currencies. It allows multi-currency operations at POS, with auto updates on exchange rates, and facilitates accounting and reporting in Indian currency.

“It manages everything from invoicing to payments for business accounts in the desired currency while tracking variable exchange rates in accordance with Financial Accounting Standards Board (FASB) and International Accounting Standards (IAS) guidelines. Streamlined workflows with options for multi-currency price checks and multiple currency refunds reduce the complexity of transactions and save time for both employees and customers,” Abhay added.

Integrated Surveillance Reduces Losses

DDFS has deployed a loss prevention system by integrating the application at POS with a surveillance management system to track transactions for defined situations. Video analytics at the point-of-sale and throughout the store deliver valuable visual information and evidence, thus reducing theft and shoplifting.

“With immediate visibility into suspicious events or individuals, we have enhanced our security to prevent losses in a comprehensive way,” said Abhay.

Efficient Inventory Ensures Optimal Stocks

From the outset, the complete automation of the logistic processes to invoicing, and payments allows accurate inventory management. It provides a detailed overview about the availability of a product. Accurate, up-to-date information helps managers to modify stock levels to avoid incidents of over- or under-stocks, helping the business to meet customer needs more effectively.

Auto replenishment has helped DDFS:

Optimize inventory levels on the basis of sales trends, stock-on-hand, etc, at stores as well as the warehouse

On-time transfer of goods from warehouses to stores

Reduce ad hoc purchase / transfer orders

Enable flexibility in modification of suggested quantities, helping the warehouse manager optimize the transit load

On-Time Business Data Improves Business Management

The unified solution across the store, warehouse and head office ensures data is available well in time to support informed management decisions. The checks and controls related to customs regulations and reporting, further aid in merchandizing decisions. Based on data availability and a wide spectrum of reports, more effective and informed decisions are taken, such as, that increase revenues or improve the in-store experience for shoppers.

The single technology platform allows a single view of business-critical information, ensures zero downtime, enhances the customer’s shopping experience, and promises a quick return over investment.
Microsoft Dynamics

Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like familiar Microsoft software such as Microsoft Office, which means less of a learning curve for your people, so they can get up and running quickly and focus on what’s most important. And because it is from Microsoft, it easily works with the systems that your company already has implemented. By automating and streamlining financial, customer relationship, and supply chain processes, Microsoft Dynamics brings together people, processes, and technologies, increasing the productivity and effectiveness of your business, and helping you drive business success.

[email protected]