Merchandise Planning

Merchandise Planning has become a vital process for retail businesses looking to increase profitability

As retail changes to become truly Omnichannel and as collection 'architecture' becomes increasingly sophisticated to meet consumer demand whilst respecting target margins, retailers and brands need to re-think their sales and merchandise planning processes and strategies and take steps to evolve their supply chains. The TXT Retail Merchandise Lifecycle Management solution, designed for retail and fashion leaders, provides end-to-end support of merchandise financial planning activities: from strategic planning to planning by attributes, to keeping your financial plans and open-to-buy controls firmly in place. As the season progresses, the solution helps retailers to easily simulate and make course corrections to keep a firm handle on the achievement of margin and inventory investment targets. Finally, retailers and fashion brands can create the starting point for the assortment planning and key item plans so that all scenarios can be seamlessly balanced, reconciled and synchronized.

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Merchandise Planning
  • Strategic Planning and Budgeting

    At its highest level, the merchandise planning process begins by planning the key factors and investments that will drive the business to success. This rolling plan allows you to view future growth possibilities from any angle, by brand or channel, individually or in any combination. Create a unified starting point for the entire planning cycle, including the creation of a commercial budget and the synchronizing to corporate financial goals. Retailers can test assumptions working at aggregate levels letting the intelligent calculation engines automatically spread them down to the more granular levels needed to control and accelerate business potential.

  • Open to buy / WSSI

    Flexibility in managing the business both preseason and in season is essential to a retail success. The powerful Open to buy features enhance business control while maintaining the flexibility to go after opportunities as they arise. This Open to Buy (OTB) understands your need to look at the business from many angles, including OTB by channel, or OTB at the aggregate level or any combination required as you adapt your processes to the needs of the season.

  • Planning by Attributes

    Transition from management and control to strategy as you turn the primary OTB values into customer focused directives determining what products fit the needs of both your financial plan and your customer-driven assortments. Attribute based OTB is the bridge between your new (or existing) plan capabilities and the drive into selecting products within a customer sensitive framework. Attributes also play a key role in helping cluster stores and channels into manageable groupings as you head into the assortment planning, allocation, and replenishment activities.

  • Location Planning

    Determine the opportunities that exist at a macro level by store by reviewing and tuning up product mix in concert with the forward looking merchandise plans. Create the starting point for additional store budgets so that weekly/daily goals and staffing schedules can be synchronized to the merchandise budgets and have the entire organization working from the same game plan.

  • Store Clustering

    How to deal with location and customer focused differences by store? Our multi-dimensional store grading module allows you to consider factors such as space utilization, sales, margin or other driving factors, customer focused attributes, or climate factors. Dynamically group stores by product segment to support planning activities and in season management. Some stores need special treatment even within a cluster? Store exceptions provide the facility to treat all stores in the cluster equally, but in special circumstances individual stores can be accommodated for their unique specificities.

  • In-season Management

    Merchandise Planning is dynamic. No plan stays static, as reality unfolds and the business changes. Deal with change productively throughout any and all planning factors through versioning and simulation. Create a best case, next case alternatives and review options and simulations to determine the best path forward.

  • With a growing company, a multichannel approach and thousands of different products to be managed, Planning at Monoprix is not an easy task. TXT Retail was selected for Merchandise Planning and Assortment Planning because of its recognized expertise in retail, developed working side-by-side with many the world’s leading retailers. More...

  • White papers, case studies and a variety of other merchandise planning resources are available on the Resource page

Key Functionality

  • Excel UI, Pivot Tables edited and manipulated at all summary levels

  • Advanced What-if, with multiple scenarios

  • Workflow management, possibility to design sequential, parallel, nested workflows

  • Concurrent Planning and Performance Management, with correlated KPIs

The Benefits

  • More profitable product mixes with a more consistent product offering

  • Full understanding of the potential for each category based on the analysis of past performance and the overall strategic direction

  • Improved synergies across channels, a contiguous customer experience

  • Reduced average inventory levels and less out of stocks to meet customers' needs