Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Merchandise planning

9,305 views

Published on

Published in: Business

Merchandise planning

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

×