STRATEGIC MERCHANDISE PLANNING

Purpose of the Overview

The overview is designed to: De-mystify Planning Identify challenges Offer solutions Present services

Connections

Planning

Assortment Planning

Store / Point-Of-Sale

Allocation and Replenish

Plans Suggested orders & Distributions

Actual DistributionsHistory

Everybody Plans

All companies perform some type of planning function:

Financial plans, Merchandise plansStore plansAssortment plans

Planning is not limited to sales, but can include other measures such as inventory, receipts, markdowns, shrink, margin, etc

The goal of any plan is to measure performance and determine the ROI .

Vehicles of Plans

Planning comes in different forms

Excel spreadsheet

Paper, pencil and calculator

Dedicated Planning software

Vehicles of Plans

Planning may be performed in various ways:

Top level planning (Company plans)Style planningHierarchy level planning (Department planning)Store planningSeasonal planning (Holiday)

Who Plans?

Depending on the size of the organization, the planning function is done by:

Dedicated planners Buyers Merchandise managers Finance Allocators Presidents / CEO’s Store Operations Store managers

Challenges

Challenges

The Challenges faced when purchasing planning software:

The Planning software is usually discussed with the wrong audience, i.e., IT personnel or project sponsors instead of the business unit.

Finding the right person to speak with within an organization is tricky.

The planning function is quite complex and based on mathematics and retail theory, therefore difficult to discuss.

Don’t know enough about the product; fear of the unknown, on both sides.

Planning is not really about the software, but rather about process and how you want to run your retail business; the software acts as a vehicle.

Challenges

The Challenges faced when implementing planning software:

In many cases, training is usually centered around the software and it’s functionality, and not on Retail Theory.

A mathematics based application is difficult for many to people to grasp.

In many organizations, the planning function is undervalued and often ignored when business is good; it is therefore not given the importance and attention that it deserves.

Challenges

There is a lack of qualified planners in the market, resulting in high turnover.

Initially, staff is trained by the software provider. Once they leave, the original software provider is not called

back to train new personnel; This lack of training usually encourages the turnover…it’s a

downward spiral.

The assumption is that dedicated Planning applications are too complicated, but in reality, it is the planning function that is complicated, not the software.

Solutions

Challenges vs. Solutions

Challenge: The Planning software is usually discussed with the wrong

audience, i.e., IT personnel, or project sponsors instead of the business unit.

Solution: Planning discussions need to be between the software

provider and a healthy cross-section of the business (buyers, planners, merchandisers, CEO’s, CFO’s)

On the business side you need to involve people who understand the way you do business, how you plan, how you buy, how you receive, how you ship, how you assort and how you clear merchandise.

Challenges vs. Solutions

Challenge: Finding the right person to speak with within an

organization is challenging.

Solution: Assess the level of retail and planning knowledge of the

software provider. Insist on dealing with someone who understands retail as

well as planning.

Challenges vs. Solutions

Challenge: The planning function is quite complex and based on

mathematics and retail theory, therefore difficult to discuss.

Solution: Understand the mathematics Ensure that any calculation can be customized at any time

based on your business requirements. Ensure that any customization does not require for the

software to be re-implemented.

Challenges vs. Solutions

Challenge: Don’t know enough about the product; fear of the unknown,

on both sides.

Solution: Education Don’t be shy about communicating what you need to know to

make you comfortable with the topic. Ensure that you have access to knowledgeable consulting

resources to: Help you understand the product. Be available to answer any questions anyone may have. Help build your planning and retail processes.

Challenges vs. Solutions

Challenge: Planning is not really about the software, but rather about

process and how you want to run your retail business; the software acts as a vehicle.

Solution: You need to move away from how things were done in the

past, including handed-down processes and move towards how things should be done.

These types of process definitions will help you measure your performance and realize the ROI.

Ensure that you have access to the latest information on industry best practices.

Challenges vs. Solutions

Challenge: In many cases, training is usually centered around the

software and it’s functionality, and not on Retail Theory.

Solution: Learning to press buttons is easy, understanding the

reasoning behind the buttons is quite another story. Make sure you have access to specialized retail and planning

consulting services, which can be used to: Mentor inexperienced staff Bring in a fresh perspective Improve efficiencies

Challenges vs. Solutions

Challenge: A mathematics based application is difficult for many to

people to grasp.

Solution: In this case, insist on having simple, clear and accessible

documentation that defines and explains all the calculations that exist in your system.

Conduct workshops on the mathematics behind the calculations to ensure that your staff is evolving at an optimum rate.

Challenges vs. Solutions

Challenge: In many organizations, the planning function is undervalued

and often ignored when business is good; it is therefore not given the importance and attention that it deserves.

Solution: The reality is that planning is equally important in good

times as in bad. When times are good, planning can help you seize

opportunities. When times are bad, planning will help you keep inventories

under control. Plans are the only way that you can measure your progress.

Challenges vs. Solutions

Challenge: There is a lack of qualified planners in the market, resulting in

high turnover. Initially, staff is trained by the software provider. Once they leave, the original software provider is not called back

to train new personnel; This lack of training usually encourages the turnover…it’s a

downward spiral

Solution: One option is to outsource some of the planning functions all the

while maintaining approval authority. Second option is to augment your current planning activities to the

next level. Accurate and up-to-date documentation is the key to ensuring that

the knowledge remains in the company and does not leave with the employee.

Challenges vs. Solutions

Challenge: The assumption is that dedicated Planning applications are too

complicated, but in reality, it is the planning function that is complicated, not the software..

Solution: Regardless of what bells and whistles may exist within a piece of

software, the user needs to understand the logic behind the buttons they are pressing.

Buying a dedicated planning application goes beyond the software. It is your opportunity to reach your potential based on a process that best suits your business environment.

In a retail environment, processes are continuously evolving and as a result, a planning implementation is not a task, it is a relationship.

Services

Our Services

Planning implementation consulting. Assortment Planning implementation consulting. Allocation Evaluation Consultation on custom calculations Planning Outsourcing Planning/Retail Consulting Business process definition/consultation Augmenting planning functions Merchandising/Planning Hierarchy definition System audits Business audits Report assessment and consolidation

How to get in touch

► Appelez-moi : 514 898-0685

► Écrivez-moi : Hoda.ghatas@hotmail.com