We don’t mean to upset anyone by calling their planning activities ‘basic’; at least you have a planning process. It’s alarming how many retailers have no structured planning process in place at all. Not even the back of a cigarette packet or napkin. Nothing. Zip. Nada. Zilch.
So the presence of any planning process at all is a plus, lets be clear about that.
This is the most common scenario of planning that we come across:
Keeping this process alive is hard enough to do, so it’s no wonder that most companies struggle to go further. In many cases, the main driver of this mode of planning is to provide and manage an overall open to buy figure for the buyers to work to. Really, if we are being honest, it’s about controlling the core metrics of the business, and not about optimizing the opportunities.
But hey, that’s OK. This is all that some companies want and need, and that’s fine by us. Running a monthly open to buy to control receipts and keep the store inventories in check is pretty much a full time job in anyone’s book.
In a basic merchandise planning process, the main driver for a new system is really to rid themselves of the administrative nightmare that goes with keeping the spreadsheets alive. However, by moving to a structured system there are often (it depends on which system you select) a number of advantages that you gain, even keeping the overall scope the same.
We could go on, but we’re sure you get the point. If you are looking for ways to justify investing in a system like this, then head to our benefits page where we can help you build a cost/benefits case.
Company Founded: 2001
Head Office: Toronto, Canada
Satellite Offices: USA, UK, Australia
First Client: Roots Canada