6th Day of D365mas: Welcome to Santa’s Jewelry Department at the North Pole

One of the most popular gifts that Santa is asked for is high-end jewelry. In addition to Santa’s workshop, Santa’s brick-and-mortar jewelry store and online shop offer the most beautiful necklaces, bracelets, rings, and gems that people on the “nice” list can choose from. But in order to stay on top of jewelry preferences, requests, and trends across shopping channels, Santa and his Elves use Hitachi Solutions for Luxury Goods and Hitachi Solutions Ecommerce.

Hitachi Solutions for Luxury Goods
Our luxury goods solution focuses on increasing shopper engagement, conversion, and retention across all sales channels through omnichannel commerce, clienteling, and advanced analytics. It also streamlines store operations by providing a luxury goods optimized point of sale (POS) solution. The solution has extended Microsoft Dynamics 365 for Retail to meet the needs of luxury goods retailers.

The solution offers optimized inventory management for low volume, high value goods and predictive analytics for supply chain. It allows Santa to better meet shifting demands and expectations, and helps him accomplish digital transformation in his business. Because even Santa needs to evolve with changing trends!

Solution Overview

Optimized Store Operations

Product Merchandising and Warranty Association

The POS solution has robust product merchandising capabilities that gives Santa product information in the form of additional product images, documentation, and product attributes. For example, in the jewelry store a diamond specialist Elf can share diamond attributes such as color, clarity, shape, etc.

Santa can also define warranty programs using the solution. Warranty products and warranty pricing can be set up based on product value ranges or percentage of product value.

Point of Sale visual layout

Store Clienteling

The solution provides Santa’s Elves with store clienteling from an omnichannel standpoint.  An Elf can search customers across all channels (brick-and-mortar store, ecommerce, and call center), see customer information and buying trends in the form of order history, and product upselling with product suggestions, ecommerce wish lists, or affiliations is automatically generated using Azure Machine Learning. The solution also provides visibility into repair and special order statuses.

The solution extends the Dynamics 365 platform for sales associates to use as a “digital black book” to service their customers better and improve sales through customer interaction.

Clienteling with an in-store POS
Mobile-optimized digital black book


Luxury Goods Special Order Transactions

The solution enables Santa and his Elves to perform several special order transactions such as:

  • Custom jewelry orders.
  • Trade-ins for both in-store items and foreign items (e.g., items not part of the store catalog).
  • Breakouts of kitted items (diamond is one SKU and setting is another SKU) as well as items purchased as a single SKU (the diamond and setting are sold as one). The system allows Santa to bring the unsold component back into inventory and offset the main item so as not to interfere with item costing calculations.
  • Layaway Transaction: The ability to place an order as a layaway order and record initial layaway payment. The solution allows the store Elves to easily manage open layaway orders for payments, payment history, item pick-up once payments are complete, and layaway order cancellations.
  • Repairs and Services: The ability for store associates to process repair and service orders such as ring resizing or phone repair orders, along with scheduling capabilities and repair/service order tracking.
  • Support for Serialized Inventory: Sell by location for items available in different display cases; case counting for inventory management in the store.
  • Store fulfillment for omnichannel commerce and inventory balancing optimized for low volume and high value items.


Omnichannel Commerce

Hitachi Solutions Ecommerce provides a responsive web-based solution for improving online conversion and providing customers with the omnichannel expectations of today’s shopper. Though a sale may happen in the store, an online presence contributes to the in-store sale conversion and vice versa. For instance, a customer may not decide to buy a ring before doing extensive research online first.

Hitachi Solutions Ecommerce delivers:

  • Robust product merchandising
  • Product builder/configurator functionality (e.g., a ring builder that customizes ring components based on the customer’s preferences),
  • Advanced online shopping cart capabilities
  • Customer loyalty points and rewards
  • Buy online, pick-up in store functionality
  • 24/7 online customer service through a self-service account.
  • Omnichannel store inventory visibility
  • Omnichannel gift certificates (buy a gift certificate in the brick-and-mortar store and redeem online, or vice versa)

Our luxury goods solution provides Santa with a centralized back office for both brick-and-mortar and online catalogs, with the ability to manage master data and pricing. As part of the Ecommerce solution, additional merchandizing for web-only content can be managed. Hitachi Solutions Ecommerce also integrates with Adobe Experience Manager to build an experience-based, online shopping model


Corporate Operations

On the corporate side, our luxury goods solution offers:

  • Support for serialized inventory from a POS standpoint and from a receiving and warehousing standpoint, with the ability to track vendor serial numbers (a part of the receiving process in the warehouse).
  • Support for Vendor Owned or Event SKUs: The ability to set up vendor-owned SKUs where a sale triggers the automatic generation of a “Received” purchase order. Vendor invoices can be entered for the purchase order created.
  • Support for Consignment Inventory:
    • The ability to track an item as both consignment and asset inventory.
    • The ability to place replenishment orders for consignment inventory, as well as physically receive inventory without any financial accounting impact.
    • The Ownership Change Journal for consignment inventory is automatically created and posted when a sales order is placed. This sales order can be initiated through the online store, call center, or brick-and-mortar POS transaction. The post-Ownership Change Journal will also create a “Received” purchase order and invoices, once received from the vendor, and can be entered in the system.
Asset vs Consignment on-hand inventory
(The owner dimension differentiates which vendor owns the inventory – USRT in this case is the legal entity in Dynamics 365, and hence is the Asset Inventory)
Consignment purchase order ready for receiving
Inventory Ownership Change Journal
  • Repairs and Service Order Management: The ability to manage repairs and service orders from a back office processing standpoint. Repair orders placed in the store will trigger a case, based on the reason code selected as part of the Repair Transaction entry. For example, the watch resizing reason code will trigger the Watch Resizing case. Cases can be set-up with different stages. For example, watch re-sizing cases can be set up with stages such as Inspection, Link Removal, and Quality Check. The stages, workflow, and approvals for a case can be as detailed as possible.
  • Replenishment and Inventory Balancing Optimized for Low Volume, High Value Items: The ability to set up minimum and maximum values for replenishment or let the system dynamically set-up the minimum/maximum values based on forecast and past sales.
Example of an Open to Buy Report


Reporting and Analytics
The solution includes a powerful reporting and analytics tool in the form of Power BI. Power BI is integrated seamlessly into the solution to provide workspaces/dashboards and detailed, drilled down reporting for different audiences, such as Executive, Store Manager, Financial and Sales Audit, Procurement and Buying, etc.

Dynamics 365 workspace with built-in Power BI reporting
Executive level reporting with drill-down capabilities

It’s a busy time of year, and Santa and his Elves are able to keep omnichannel jewelry store operations running smoothly with our luxury goods solutions and Hitachi Solutions Ecommerce. For questions on how these solutions can help your retail business, please contact Hitachi Solutions today.

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