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Merchandise planning

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  • 1. WWW.IvanFuchs.com
  • 2. Influences Merchandising Process People Systems SUPPLY CHAIN P O S MERCHANDISING MANAGEMENT REPORTING FINANCE DISTRIBUTION LOCATIONS SUPPLIERS MARKETING STOCK ALLOCATION INVENTORY MANAGEMENT PERFORMANCE ANALYSIS SALES & FORECASTING OPEN TO BUY MARGIN
  • 3. Key Drivers Merchandise Planning Right Time Right Processes Right People Right Quantity Right Product Right Location
  • 4. Right Location
    • Physical Location
    • Size
    • Occupancy Costs
    • Demographics
    • Classification
    • Grade
    • Sales per m ²
  • 5. Right Time
    • Speed to Market
    • Seasonality
    • Seasonal Trends
  • 6. Right Processes
    • Sales and Forecasting
    • Inventory Management
    • Stock Allocation
    • Supply Chain
    • Margin Management
    • Performance Analysis
    • Open to Buy
    • Industry Benchmarks
    • KPI’s
  • 7. Right People
    • Level of Experience
    • Level of Expertise
    • Succession Planning
    • Incentive Programs
    • Training and Development Programs
  • 8. Right Quantity
    • Size Matrix
    • Colour Assortment
    • Fabric Assortment
    • No. of Styles
    • Quantity per Style
    • Sleeve Lengths
    • Pant Lengths
    • Category Mix
  • 9. Right Product
    • Target Market
    • Suppliers
    • International Trends
    • Value Equation
      • Price
      • Fashion
      • Quality
  • 10. Common Problems Experienced
    • Late to Market
    • High Stock Holdings
    • Wrong Product on Racks
    • Timing of Markdowns
    • Inadequate Stock Allocation Methodology
    • Range Planning not identifying Key Trends
    • Inadequate Margin Management
    • Lack of detailed Management Reporting
    • No Lifecycle Management Strategy
    • No Pre-Season Strategic Plan
  • 11.
    • Step 2
    • Initial Budget Proposal for New
    • Season by Store at level taking into account
    • Current New Stores
    • Refurbishments
    • Relocations and
    • Closures
    • Indicative Market Financial Trends
    • (CPI, Industry Growth)
    • Gross Margin Target
    • Step 3
    • Commence Merchandising Planning
    • Process at Department Level for
    • Sales
    • Stock (WOS and S/T )
    • Markdowns
    • Spend (Open to Buy)
    • Gross Margin
    • Average Retail Pricing
    • Step 4
    • Grade Stores by Turn Over
    • Take Department Product (Sales/Stock)
    • Plans down to Category level
    • by month
    • by week
    • by Graded Store
    • by Climate Grid
    • by Store Demographic
    • Step 5
    • Review Planned Sales % Contribution
    • by department, or
    • by category, or
    • by Store
    • vs. Previous Like Season
    • Step 6
    • Quantify Product Mix
    • Number of Styles
    • Quantity per Style
    • Sleeve Lengths
    • Pant Lengths
    • Top to Bottom Ratio’s
    • Colour Plan
    • Fabric Plan
    • GP Plan
    • Price Point Plan
    • Size Matrix
    Step 7 Sign-Off Product and Financial Plans
    • Step 8
    • Supply Chain Optimisation
    • Supplier Selection (Fashion/
    • Quality/Price)
    • Logistics Planning (Speed to Market)
    • Step 10
    • Sales/Stock Performance Review
    • by Store
    • by week
    • by month
    • Step 9
    • Stock Allocation Process
    • by Style
    • by Store (incl new/Refurb)
    • by performance vs. plan
    • Delivery to Store
    New Season Merchandise Planning Cycle
    • ADS
    • AUS
    • Step 1
    • Review Past Season
    • Company Performance vs. Plan
    • Category/Dept/Store
    • Sell Thru by Product Type
    • Missed Opportunities
  • 12.
    • Review Past Season
    • Company Performance vs. Plan
    • Category/Dept/Store
    • Sell Thru by Product Type
    • Missed Opportunities
    Step 1
  • 13.
    • Initial Budget Proposal for New
    • Season by Store at Company
    • level taking into account
    • Current Trends
    • New Stores
    • Refurbishments
    • Relocations and
    • Closures
    • Indicative Market Financial Trends
    • (CPI, Industry Growth)
    • Gross Margin Target
    Step 2
  • 14.
    • Commence Merchandising Planning
    • Process at Department Level for
    • Sales
    • Stock (WOS and S/T )
    • Markdowns
    • Spend (Open to Buy)
    • Gross Margin
    • Average Retail Pricing
    Step 3
  • 15.
    • Grade Stores by Turn Over
    • Take Department Product (Sales/Stock)
    • Plans down to Category level
    • by month
    • by week
    • by Graded Store
    • by Climate Grid
    • by Store Demographic
    Step 4
  • 16.
    • Review Planned Sales % Contribution
    • by department, or
    • by category, or
    • by Store
    • vs. Previous Like Season
    Step 5
  • 17.
    • Quantify Product Mix
    • Number of Styles
    • Quantity per Style
    • Sleeve Lengths
    • Pant Lengths
    • Top to Bottom Ratio’s
    • Colour Plan
    • Fabric Plan
    • GP Plan
    • Price Point Plan
    • Size Matrix
    Step 6
  • 18.
    • Sign-Off Product and Financial Plans
    Step 7
  • 19.
    • Supply Chain Optimisation
    • Supplier Selection (Fashion/
    • Quality/Price)
    • Logistics Planning (Speed to Market)
    Step 8
  • 20.
    • Stock Allocation Process
    • by Style
    • by Store (incl new/Refurb)
    • by performance vs. plan
    • Delivery to Store
    Step 9
  • 21. Step 10
    • Sales/Stock Performance Review
    • by Store
    • by week
    • by month
  • 22. FAQ Relating to Merchandise Planning Cycle
    • Step 1
      • Do you review previous season?
      • At what level of your assortment do you analyze?
      • What is the format you use in this process, i.e. SWOT analysis?
      • Do you have a standard document?
      • What do you do with the information?
      • How quickly do you react to the analysis?
      • Who drives this process?
      • Do you have follow up meetings?
      • To whom is the analysis presented?
      • How long after the season is the analysis done?
      • Are there checks and balances in place to ensure results are taken into next like season buy.
  • 23.
    • Step 2
      • Who does initial sales forecast?
      • What factors are considered in preparing this forecast?
      • Who provides input into the process?
      • Are Operations involved in the process?
      • Who is accountable for the budget?
      • How is the budget presented?
    • Step 3
      • Do you plan by week/month/season?
      • How do you determine benchmarks for:
        • WOS
        • Stock Turn
        • Markdowns
        • OTB
        • Gross Margin
        • Ave. Retail Price
    FAQ Relating to Merchandise Planning Cycle
  • 24. FAQ Relating to Merchandise Planning Cycle
    • Step 4
      • How are stores graded/ranked?
      • What factors are considered when grading stores?
      • Who provides input into this process?
    • Step 5
      • How much emphasis is placed on % sales contribution?
      • At what level is this broken down to?
    • Step 6
      • Who determines the assortment plan?
      • How do they go about developing their plan?
      • Who drives the plan?
      • Who owns the plan ?
  • 25. FAQ Relating to Merchandise Planning Cycle
    • Step 7
      • Who signs off plans?
      • Who is accountable and takes ownership of plans?
    • Step 8
      • What are criteria for selecting suppliers?
      • Who sets criteria?
      • Are suppliers given regular feedback on performance?
      • What happens if there are quality issues?
      • What happens if there are late deliveries?
      • What happens if a supplier cannot meet cost price?
  • 26. FAQ Relating to Merchandise Planning Cycle
    • Step 9
      • What criteria are applied to determine quantification to each store?
      • How often are criteria reviewed?
      • How do you determine what a new store should receive as opening stock?
      • Who controls the allocation process?
    • Step 10
      • Is there a process to review performance?
      • What happens to information generated in these reviews?