Chapter 8 Managing a Retailer’s Finances
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Transcript of Chapter 8 Managing a Retailer’s Finances
Chapter 8Chapter 8Managing a Retailer’s Managing a Retailer’s
FinancesFinances
Nanut SitthiphongChun-Lan Yeh
Chapter 8 OverviewChapter 8 Overview
• Merchandise Budget 1. Planned sales
2. Planned BOM and EOM inventories
3. Planned retail reductions
4. Planned purchases at retail and cost
5. Planned gross margin.
Merchandise BudgetMerchandise Budget
Chapter 8 OverviewChapter 8 Overview• Retail Accounting Statement ⊙ Income Statement or Profit and Loss Statement ⊙ Balance Sheet ⊙ Statement of cash flow
• Inventory Valuation ⊙ Accounting Inventory System - The Cost Method - The Retail Method ⊙ inventory pricing systems - FIFO - LIFO
How to get the right How to get the right merchandise assortment merchandise assortment and sufficient stock to and sufficient stock to achieve planned salesachieve planned sales
• According to Retail Reporting Calendar• Using Forecasting Technology
- Peclers paris- Planalytics- Sourcing Simulator
Retail Reporting CalendarRetail Reporting Calendar
PeclersP a r i s
• Dominique Peclers established the styling agency in 1970.
• In 1998, joined the British-American group Fitch Worldwide, specialists in brand and design consulting.
• Today, international trend forecasting leader. 21 agents throughout the world.
• Peclers Paris forecasts and deciphers today the fashion moods of tomorrow, imagine the future, and give sense to the product.
PeclersP a r i s
• Service provided:
- Style and product design consultancy
- Promotion and communication consultancy
- Origination and publication of trend books
Planalytics• Weather and climate-sensitive industries, both di
rectly and indirectly, account for about one-third of the Nation’s gross domestic product, or $3.0 Trillion.
-Conrad C. Lautenbacher, Jr. Vice Admiral, U. S. Navy (Ret.) Under Secretary for oceans and Atmosphere, United States Dapartment of Commerce. –
• The benefits for retailers are more effective store-specific merchandise assortments, higher customer satisfaction levels, less safety stock at all levels of the supply chain, increased stock turns, fewer stock-outs, fewer markdowns and increased profitability.
Planalytics• Business Forecasting service to help firms
planning the merchandise budget by providing forecasting weather-driven changes in supply, demand and prices for products and services.
• Results : - Risk Management
- Improved Control of Cost
- Increased Revenue
Sourcing Simulator
• Developed by researchers at North Carolina State University, working with Textile/Clothing Technology Corp. ([TC]2) and the DAMA Project to facilitate retailers analyzes various "what if" sourcing scenarios.
Sourcing Simulator
• Benefits:
- Analyzes various "what if" sourcing scenarios on methods of supply [quick response (QR) vs. vendor-managed inventory (VMI) vs. fixed delivery times] and amounts of merchandise
- Provides financial performance measures for comparison
• What can you manipulate in Sourcing Simulator?
- the line of apparel: number of stock keeping units (SKUs), wholesale costs, other procurement costs, inventory carrying costs, etc.
- the buyer's preseason forecast of demand: total volume, SKU mix, and seasonality pattern.
- means of merchandising: retail price, markdown schedule, etc.
- sourcing means: type of vendor, initial delivery quantity, number of in-season replenishment orders, lead time until receipt, vendor reliability, etc.
Sourcing SimulatorSourcing Simulator
THANK YOUTHANK YOU
QUESTIONS?QUESTIONS?
SourceSource
• http://findarticles.com/p/search?qt=planalytics&tb=art&qf=free
• http://www.peclersparis.com/index2.html
• http://reliability.sandia.gov/Software/Sourcing_Simulator/sourcing_simulator.html
• http://www.planalytics.com/app/corp/start.jsp
• Retailing, Dunne Lusch, 5th Edition.