Managing your Merchandise Plan and Open to Buy require you to manage different components depending on where you are in the process.
For your In-Season Plans, you will look at recent trends and delivery shifts to determine a more accurate depiction on how the business is performing. This is when you can adjust your category penetrations as well to see how product mix shifts are impacting the overall business.
Your Pre-Season Plans are built on your current trend (and financial factors) prior to having any actuals, except for some on order based on lead times. Pre-Season lets you derive a plan for your team to assort to and buy against. Please refer to this article here for a walk-through on that workflow.
When planning In Season, you will be planning based off of growth rate, monthly builds, discount rate, return rate, receipt movements and current inventory position.
Toolio - In-Season Planning Retail view we have formatted the workflow to highlight where to focus and what to input.
Flow On Order to Receipts- Run this function to seed your Receipts with the On Order Actuals for the balance of the year. (article link here)
Generate Inventory- Select this function before you start your planning to see the impact of your sales and receipts shifts on the inventory.
Gross Sales Retail - Build Planyou can re-trend your sales based on the latest actuals.
Gross Sales AUR(selling price),
Gross Sales AUCto output your
Gross Sales Units,
Gross Sales Costand
Gross Sales Margin.
Update your Receipts Plan based on any Open to Buy you need to add. Inputs are
Returns Rate Units,
Returns AUCare the inputs as well if you need to plan them.
Once you have completed these steps, you will need to review how your
BOP AUCline up with your
Gross Sales AIRand
Gross Sales AUC. This helps you identify if your sales and inventory is aligned without having to worry about planning your Markdowns.
The sales growth expected month to month
The Selling Price at the point of sale with any disc% applied.
The % off of the intended Retail Price at the point of sale.
The Weighted Average of Costs of Goods Sold.
Quantity that is either already in the supply chain and/or the total amount of units needed to hit turn goals.
The intended Retail Price (full expected retail value)
The weighted average of the Unit Cost.
The % of units returned against Gross Sales Units
The original intended Retail Price of the items returned.
The Unit Cost of the returned units
Here is a quick video on the In-Season workflow.