True assortment planning is about gathering data, and using it to guide the creative process and make smart decisions. There are two key metrics critical in inventory management as you take stock of your aging inventories: analysis of Product Type and Product Aging. Optimize and automate every part of your demand management process, from merchandise financial planning to assortment planning, pricing, replenishment, allocation, promotions and more. AP1: Overview of the Assortment Planning (AP) Process. This thought leadership article is written for professionals in retail organizations in a variety of verticals who are involved with retail technology solutions, particularly in the area of assortment planning. Understanding regular price selling and what it really means for retailers can be a game changer in today’s competitive business environment. Tesco, the UK’s leading grocer and one of the top three … Only by examining … Transforms the way retailers manage their buying process, improve efficiencies so merchants get time back to be merchants. } You can analyze your POS reports to find products that would be good to cross promote. Your. The kind of data that will help retailers find potential new product opportunities is called longitudinal data, which tracks the same … search. Created 29 Sep 07:19 Assortment Planning 1 Funding opportunity. Planning Your Number of “Turns” ... “Just in time” parts and ingredient management is also a tool to keep your cash outlays in line with sales. The good news is the right tools to understand and manage omnichannel retail are available. The market is being driven in this circumstance - it means products can be freely experimented without following an established set of rules. With a holistic assortment planning process, you can put an end to guesswork and base decisions on data. Replace Isolated Spreadsheets with a Powerful Set of Purpose-Built Applications. Top-store buys are another method that is outdated but still being used without a second thought. Simply put, the strategies for inventory assortment are meant to help business owners understand the what, where, when, who, and how much of sales. The question is not whether to innovate, but HOW. You can get buy quantities right before purchase orders are written, saving inventory dollars and allocation headaches. “We realised that we needed a different set of planning systems,” explains Borlin. Your inventory management software and sales reporting are the best things to consult. rate_reviewWrite a Review; listCategories; Log In Log In; businessFor Vendors; All Categories / Retail Assortment Management Applications / JustEnough / Merchandise Financial Planning; Merchandise Financial Planning Reviews by JustEnough in Retail … Using assortment planning to tailor your buys improves customer experience as well, because customers will be more likely to find what they want in-store. And yet, too many companies fail to invest in assortment planning despite how important their assortment is. Read verified Merchandise Financial Planning Retail Assortment Management Applications Reviews from the IT community. Through data-driven store clustering, the retailer has been able to cut inventory without sacrifcing sales. Inventory control is the process of ensuring your firm has an adequate amount of products and a wide enough assortment of them meet your customers’ needs. You have customers around the world. Assortment Planning is about deciding the number of each product that will be bought to make sure the demand is met. Simply look at items that are often purchased together and go from there. In reality, it’s about so much more. Another example that can be just as bad – a dreaded "glut" of merchandise that is left at the end of the season, resulting in margins lost due to excessive markdowns, or worse, write-downs to clear the inventory. Buy better, faster, easier, without errors. No ads or product pitches, just solid advice for you to put into action. More intelligent assortment planning methods are necessary to gain control of inventory. It’s possible (and it’s happened) for trends to be taken too literally. Is there a difference between Financial Planning and Merchandise Financial Planning in retail? Ports . Most retailers, Seasonal retailers will have a revolving inventory door and constantly changing catalogs. Speak to a dozen different retailers and you’ll get just as many different definitions. My wife and I started a meal-planning spreadsheet in January (thanks to a New Year’s resolution we actually kept). Assortment planning is one of the tools used to make that happen. With assortment planning, you can make informed decisions about which locations can sell certain items before you buy. One of the goals of inventory control is to avoid stockouts without keeping too much of a product on hand. position:relative;} Tell us a little bit about your business and explore all features that KORONA has to offer. See also: Attributing your way to Success. A perfect combination of deep retail expertise and product knowledge to help with all your buy management needs. In either event, it’s important to be able to offer something comparable. Merchandise Hierarchy: Products are classified or arranged in a way that would suit the consumer’s … But what matters for assortment planning is the marginal return on an incremental SKU, not the average return on an existing SKU. Consumers love having choice, so adding more depth in your assortment planning could help bring in additional shoppers. You want to ask yourself the following questions: In the end, proper assortment planning allows business owners to better anticipate demand and therefore optimize their inventory and cash flow based on that anticipation. You can get buy quantities right before purchase orders are written, saving inventory dollars and allocation headaches. Assortment planning is the process of choosing which items to buy and in what quantities to ensure you have the best practices of retailing them profitably. Generally, art is subjective and science is fact-based. .fs-title{font-size:15px;text-transform:uppercase;color:#000;margin-bottom:10px;} In this case, the data that was delivered is not part of the assortment, so there is not an automatic mapping process for the assortment. Inventory Control. But like many retail planning practices, the traditional wedge plan is becoming obsolete. By : Abhishek Kumar, Shuchita Awasthi, Sagarika, Sneha and Tejaswini Established in 1998 Important brands include nuon, diza, gia, wunderlove , Bombay paisley, vark, utsa, Head quarter in Mumbai , Maharashtra. ERP systems often integrates business activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, fulfillment, to order … Unlike a traditional placement fill, we continually work with both the individual and your own organisation to make sure the partnerships offers as much support as possible. Surprisingly, just enough humidity in the air—not enough to lead to precipitation—can boost the likelihood of lightning, which can ignite dry grasslands or water-starved trees. Focus on your best inventory options for the immediate business at hand. At Just Enough we have worked hard to build up a network of strong change associates. Improving assortment planning means improving the quality and quantity of useful information that can have a huge impact on your assortments. Learn more about the technology behind daVinci. Regionalised assortment planning “At Tesco, we are passionate about customer service and everything we do is focused on improving shopper satisfaction. If you have multiple locations, you must consider each uniquely. 5. By linking assortment planning tools with consumer data insights - and staying ahead of consumer and competitor trends - you can uncover new opportunities to deliver a seamless, omnichannel shopping journey to boost sales, loyalty and lifetime value per customer. There are actual companies where buyers can say to themselves, “I think I can sell 5,000 of these,” and initiate a purchase order. With old assortment planning methods, it’s easy to miss things. And the nice thing is, there are so many different approaches any small business owner can take. Budgets are too tight and margins are too thin to tolerate guesswork in the buying process. 1 Vote Sizing summary roll-up pre-commitment It would be really beneficial for a buyer to … Use space constraints and market demands to help guide your retail assortment planning. It’s important to carry items for any major retail holiday, general time of the year, or weather patterns. Take the time to analyze each category in your store to ensure that you offer products from each. Inventory control is the process of ensuring your firm has an adequate amount of products and a wide enough assortment of them meet your customers’ needs. You may also want to add product depth. The details of inventory like color, size, materials, brand, etc. Using data to your advantage can keep you from selling out of your best items before customer demand is exhausted. Let’s get more in-depth with several common retail assortment strategies. How Retailers Can Scale Innovation Needs NOW, Merchandise Financial Planning is Critical to your Bottom Line, Agility is a Matter of Survival in the New Normal. Think about adding more sizes, colors, fits, patterns, etc. are specified. This is crucial for catching problems before it’s too late. It’s so critical for retailers to manage their assortment strategies because it helps optimize products for more conversions. You also need to consider the amount of retail space that each location has. Agility of the merchant team to plan and react quickly to changes in these challenging times is critical to retailer’s survival. Demand forecasting is part of a company’s overall inventory control activities. It’s important to remember that you need not tackle all of them at once. Staying current with retail planning and buying software is a competitive advantage. In business, analytics always win over guts. A shopper may be looking for a substitute if your business is out of stock for a certain item or if you don’t carry a specific brand that they were looking for. By Tom Ryan. How GUESS? With advances in Artificial Intelligence (AI) and Machine Learning (ML), will Planning and Buying teams be replaced by these technologies? .fs-subtitle{font-weight:normal;font-size:13px;color:#666;margin-bottom:20px;} It’s hard enough to anticipate what products shoppers want to buy; determining the right amount of inventory for each item is even harder. 4 were here. If your customers love paisley and hate plaid, you need to be able to quantify their preference. Instead, focus on one or two at a time and pursue the channels that will have the biggest return on your time and money investment. Reviewer Insights and Demographics. For daVinci, we believe diversity is our strength. 1. Getting it right is critical to your survival. Enables retailers to build financial roadmaps to guide merchandise decision-making and deliver sales and margin goals. Your business’s inventory management is one of the most important areas to focus on. The email address you provided is already in use. Each customer touchpoint is unique. This method gets you way closer to the actual number of units you need to buy for a particular style. The key premise of proper assortment planning is basing your buys on data, rather than estimates. It’s about what drives sales and how to drive more sales. #progressbar li:before{content:counter(step);counter-increment:step;width:20px;line-height:20px;display:block;font-size:10px;color:#333;background:white;border-radius:3px;margin:0 auto 5px auto;} We’re here to help. Retailers are currently facing competing pressures: to provide more customer choice and to lower prices. Created 23 Nov 10:13 Assortment Planning 0 1 Vote PH/PLM Desc … And even though the buyers in this case have the necessary experience to get it right much of the time, it’s impossible to be sure whether they’re buying the correct quantity. The base assortment goes to all stores. Stores were highly localized, as was the population. When your buy plan is nothing more than an excel spreadsheet, it’s hard to get good information. The details of inventory like color, size, materials, brand, etc. “Good-better-best” is a classic example of a dated technique. ® Since then, hundreds of nonprofits have used this roadmap to put successful campaign strategies in place. Spreadsheets solve problems at hand, but only as the minimum viable option. Below are several examples of how great assortment planning can have a positive impact on a store: Even more, there are so many factors to consider when determining your assortment strategy. Why are fashion buyers upgrading from Excel to Assortment Planning? More intelligent assortment planning methods are necessary to gain control of inventory. There’s no nuance. If you’re basing your buys on top stores vs. all stores, you’re only addressing one small factor of customer demand. A modern planning solution delivers these capabilities, #msform{width:400px;margin:50px auto;text-align:center;position:relative;min-height:400px;} Often times, assortment planning is confused for just one aspect of this. Tailor buys by customer to improve sell-thru and ensure each assortment is profitable from the start. The point: work toward one common set of reports and create one version of the truth. #progressbar{margin-bottom:30px;overflow:hidden; Who is this document for? We have argued that assortment planning is a holistic process that encompasses the whole buying process. Below are a handful, only to name a few: It’s a lot, we know. Tapping into the analytics and advancement capabilities of Cannondale Associate’s RichMix assortment planning solution, DemandTec (a RetailWire sponsor) has come up with an assortment optimization solution providing enhanced functionality for retailers to understand shopper behavior. This article explores just one key process – Merchandise and Assortment Planning. All Rights Reserved. Without one, product assortment planning is nearly impossible. Latest industry trends, buying, merchandise assortment and financial planning insights from our team of retail veterans. Today’s planners must add tens of thousands of items to a workbook, compared to a web experience with hundreds, but their expectation is to have the same responsiveness. Lets you create and manage localized assortments with in-plan analytics driven by consumer and trade-area demand. Imagine the big trend for the year is red. You can get buy quantities right before purchase orders are written, saving inventory dollars and allocation headaches. Assortment Planning and Placement; Custom Planograms; Fixture Coordination and Management; Expert Space Planning; Product Images and Custom Photography; Pricing Analysis; Data Solutions; 360° Store Assessment; Market Research and Education; Collaborative Strategy Session; Distributors. We talk a lot about small ways to further your store’s efficiency, productivity, and overall success. For inquiries and suggestions please contact our marketing team. But what matters for assortment planning is the marginal return on an incremental SKU, not the average return on an existing SKU. #progressbar li{list-style-type:none;color:#f78913;text-transform:uppercase;font-size:9px;width:33.33%;float:left;position:relative;} Mi9 Assortment Planning guides users through the process of creating localized assortments based on financial objectives. Get clear on your store’s image and purpose. 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