Falcon's Invoice Discounting: Your Path to Prosperity
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1. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Buying & Merchandising 2
Dr Neil Towers
The TASk Development Partnership is part funded by the
European Social Fund under the Equal Community Initiative Programme
2. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Learning Objectives
To understand Fashion Retail Buying
and Merchandising
To evaluate a Weekly Sales, Stock and
Intake schedule
3. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Definition of a range
Scope
Width of choice
Depth of styles, colours, sizes and price
points
Price Points
Architecture
Link to strategy and communication
4. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Fashion changes
Residual stock gives flexibility to
respond
Captures new trends
Value Fashion retailers
Higher volumes and greater cash
commitment
Slow moving stock management
5. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Internal Planning
Financial planning
Stock model planning
List and De-Listing from range
6. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Range Planning for own label
Collating qualitative and quantitative
appraisal
Planning for an own label range
Proposal for future ranges
7. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Buying Branded Fashion
merchandise
Smaller quantities
Selection from a catalogue
Influence of season trading
Outlets
Store or Non store
8. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Seasonal contribution
Weighting
Merging grey seasons
Capacity and Response
9. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Support from others
Involve agents or Fashion show
promotions
Manufacturers have identified and
marketed brand
New Product Introduction supported by
manufacturer’s contribution
10. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Intake
“A term relating to the amount of stock
delivered or planned to be delivered into
a fashion business”
(Jackson and Shaw, 2001, p189)
11. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Demand profiles
Seasonal sales variations
E.g Fashion women’s wear sales
Ranges from 12% in December to 6% in
February
Departmental stores with seasonal
sales
Managed by category
Swimwear in Spring and Tee Shirts in Summer
12. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Demand profiles
Typical cross sales ratios
Top garments to bottom garments as 2:1
Women’s wear Lingerie
Menswear Ties to shirts
13. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Commitment
“The value of stock (usually at selling
price) that has been ordered by the
buyer, but not delivered or paid for.”
(Jackson and Shaw, 2001, p184)
14. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Time scale commitment
Long term Forecast
Based on comparative analysis; LFL Sales
Monthly Schedule
Respond to emerging trends
Weekly Plan
Committed requirements
15. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Open to Buy
“the amount of buying money available
at any one time”
OTB = Opening stock – Closing stock
sales
(Jackson and Shaw, 2001, p192)
16. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Typical delivery dates
China - Product can be made in all parts of the country and
there is an indeterminate time to get to the port. But FOB
Chinese port it's 6-8 weeks, route dependant.
Indonesia - 6 weeks.
Morocco - 8-10 days. this depends on how much of the route is
by sea, and how much by lorry. The quickest being by sea to
Spain then on by land.
Romania - 6 - 8 days.
17. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Weekly Sales, Stock and Intake
(WSSI) plan
Sales phased by week
Intake by schedule and forecast
Fixed, Firm and Tentative
Forward Plan for opening and closing stock
18. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Delivery schedule
Use WSSI to plan forward stock
30% - 40% OTB at beginning of the
season
Respond to Fashion Phasing within
season
Incentives to stimulate demand
19. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
WSSI plan exercise
To demonstrate constructing the
merchandise plan
20. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
OTB and Intake
0
500
1000
1500
2000
2500
3000
1
3
5
7
9
11
13
15
17
Week Number
Cum Intake
OTB
21. William Lee Innovation Centre,William Lee Innovation Centre,
Textiles & Paper, School of MaterialsTextiles & Paper, School of Materials
Learning Objectives
To understand Fashion Retail Buying
and Merchandising
To evaluate a Weekly Sales, Stock and
Intake schedule